USA Rare Earth (NASDAQ:USAR) Hits New 1-Year Low – Should You Sell?

Shares of USA Rare Earth Inc. (NASDAQ:USAR) reached a new 52-week low during trading on Monday. The company traded as low as $9.00 and last traded at $9.0560, with a volume of 1,465,992 shares traded. The stock had previously closed at $9.33.

Key USA Rare Earth News

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

• Positive Sentiment: Construction begins on $1.2 billion magnet complex: USA Rare Earth has broken ground on a mineral-processing plant in South Carolina. The project is a significant step toward the company’s strategy of becoming a vertically integrated producer of rare-earth metals and magnets, potentially improving supply-chain control and long-term growth prospects. USA Rare Earth Just Broke Ground on a $1.2 Billion Magnet Complex. Here’s Why It Matters.
• Positive Sentiment: Critical-minerals sector rally: Buying spread across critical-minerals companies, including USA Rare Earth. The broader sector bid suggests investors are favoring domestic supply-chain and strategic-minerals themes, although the move may also reflect industry momentum rather than a new USAR-specific fundamental development. Critical Minerals Stocks Rally as Sector Bid Broadens
• Neutral Sentiment: Short-interest data provides no clear catalyst: A report characterized October short interest as a large increase, but the disclosed figure was zero shares and a zero-day short-interest ratio. That data does not indicate meaningful short-covering pressure or a short squeeze.
• Neutral Sentiment: Former legal chief joins Westwin Elements: David Kronenfeld, previously USA Rare Earth’s general counsel, was appointed chief legal officer at Westwin Elements. The personnel change is not accompanied by details suggesting a material impact on USAR’s operations or financial outlook. Westwin Elements Appoints David Kronenfeld as Chief Legal Officer

Analyst Ratings Changes

Several brokerages recently commented on USAR. Roth Capital reduced their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Texas Capital upgraded shares of USA Rare Earth to a “strong-buy” rating in a research report on Tuesday, October 20th. Needham & Company LLC reduced their price objective on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Wall Street Zen downgraded USA Rare Earth from a “sell” rating to a “strong sell” rating in a research report on Saturday. Finally, Jefferies Financial Group assumed coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They issued a “buy” rating and a $21.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $33.71.

USA Rare Earth Stock Performance

The business’s 50-day moving average is $14.76 and its 200 day moving average is $18.92.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. On average, analysts anticipate that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in USA Rare Earth in the 2nd quarter valued at $335,795,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth during the 2nd quarter worth $32,762,000. Weiss Asset Management LP bought a new position in shares of USA Rare Earth in the first quarter worth $17,103,000. Korea Investment CORP acquired a new position in USA Rare Earth in the second quarter valued at about $18,108,000. Finally, Bank of New York Mellon Corp acquired a new position in USA Rare Earth in the second quarter valued at about $13,510,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc (NASDAQ:USAR) is developing an integrated domestic supply chain for rare earth and other critical minerals. The company’s activities include the exploration and planned extraction of mineral resources, processing and separation of rare earth elements, and the production of sintered neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company’s flagship asset is the Round Top Mountain project in Hudspeth County, Texas.