USA Rare Earth (NASDAQ:USAR) Trading Down 7.7% on Disappointing Earnings

Shares of USA Rare Earth Inc. (NASDAQ:USAR) traded down 7.7% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.87 and last traded at $14.23. 12,236,215 shares were traded during mid-day trading, a decline of 37% from the average session volume of 19,408,479 shares. The stock had previously closed at $15.42.

The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter.

More USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: Secured major funding commitments and manufacturing capacity: USAR announced a planned ~$1.6B Commerce funding commitment, raised ~$1.5B in a private placement, completed acquisition of Less Common Metals (LCM), and has begun commercial magnet production at its Stillwater site — moves that materially advance its mine?to?magnet strategy and could justify future revenue scaling. Article Title
• Positive Sentiment: Long?term upside scenario supported by forecasts: Analyst pieces (e.g., Seeking Alpha) model rapid scaling of magnet and metal sales to ~$2.6B by 2030 and argue USAR currently trades at a low multiple of those expected 2030 EBITDA figures — a bullish case for long?term investors if execution and funding succeed. Article Title
• Neutral Sentiment: Geopolitical tailwinds support sector rationale: Coverage on the China?U.S. rare earth trade dynamics underscores sustained government interest in onshore REE supply chains — a structural tailwind for USAR but one that does not guarantee company?level success. Article Title
• Neutral Sentiment: Analyst target trimmed but rating intact: Canaccord lowered its price target from $33 to $29 while keeping a “buy” rating — a signal of confidence tempered by the need for near?term progress. Article Title
• Negative Sentiment: Quarterly miss and rising losses: USAR reported Q4 results showing an increased adjusted loss per share (from $0.15 to $0.19) and only $1.64M in revenue, missing estimates — a near?term performance driver pushing the stock lower. Article Title
• Negative Sentiment: Execution and funding risk remain material: The Commerce funding is not finalized, build?out costs could exceed current estimates, and USAR still must scale commercial production to meaningfully grow revenue — risks that keep volatility and downside possible. Article Title

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on USAR shares. Roth Mkm lifted their price target on shares of USA Rare Earth from $25.00 to $35.00 and gave the stock a “buy” rating in a report on Monday, January 26th. Cantor Fitzgerald raised their price objective on USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. UBS Group restated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research report on Friday. Finally, Canaccord Genuity Group decreased their price target on USA Rare Earth from $33.00 to $29.00 and set a “buy” rating for the company in a research note on Tuesday. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $33.00.

Insiders Place Their Bets

In related news, Director Michael Blitzer acquired 100,000 shares of the stock in a transaction dated Thursday, January 29th. The stock was acquired at an average cost of $21.44 per share, for a total transaction of $2,144,000.00. Following the completion of the purchase, the director owned 847,500 shares of the company’s stock, valued at approximately $18,170,400. This represents a 13.38% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Carolyn Trabuco acquired 1,300 shares of the company’s stock in a transaction dated Thursday, January 29th. The shares were bought at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the acquisition, the director directly owned 1,300 shares of the company’s stock, valued at approximately $29,380. The trade was a ? increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 46.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Pier 88 Investment Partners LLC raised its stake in shares of USA Rare Earth by 2.5% in the fourth quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company’s stock worth $413,000 after purchasing an additional 840 shares during the last quarter. SBI Securities Co. Ltd. increased its holdings in USA Rare Earth by 20.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company’s stock worth $66,000 after buying an additional 936 shares during the period. Advisory Services Network LLC increased its holdings in USA Rare Earth by 2.0% in the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company’s stock worth $900,000 after buying an additional 1,032 shares during the period. National Bank of Canada FI raised its holdings in shares of USA Rare Earth by 110.0% during the third quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock worth $36,000 after purchasing an additional 1,100 shares during the last quarter. Finally, NewEdge Advisors LLC raised its stake in shares of USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after buying an additional 1,424 shares during the last quarter.

USA Rare Earth Stock Down 2.2%

The business has a 50 day moving average price of $19.96 and a 200 day moving average price of $18.85. The stock has a market cap of $1.96 billion, a PE ratio of -4.93 and a beta of 1.05.

About USA Rare Earth

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.