USA Rare Earth (NASDAQ:USAR) Trading Down 6.3% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price traded down 6.3% during trading on Wednesday . The company traded as low as $17.78 and last traded at $17.99. 18,667,427 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 13,560,559 shares. The stock had previously closed at $19.20.

Key USA Rare Earth News

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

• Positive Sentiment: France will back USA Rare Earth’s planned Lacq, France plant with approximately $152 million in support, signaling strong political and financial backing for the company’s European expansion. France backs USA Rare Earth plant build with $152M
• Positive Sentiment: Company press release: USAR’s LCM Europe subsidiary will build a 3,750 mtpa metal/alloy facility and the French government will provide direct tax credits to finance the project — a material funding mechanism that reduces execution and financing risk. USA Rare Earth Strengthens Value Chain with Support of the French Government
• Positive Sentiment: Unusually large options activity: traders bought ~60,375 call options (≈40% above typical call volume), indicating elevated bullish speculative interest and potential hedging ahead of the France project details. (No direct link)
• Positive Sentiment: Sector tailwinds: geopolitical tensions around Greenland and rare-earth supply security are drawing investor interest to rare-earth names, benefiting USAR as a developer with both U.S. and EU exposure. 2 Rare Earth Stocks Hot Amid Greenland Gridlock
• Neutral Sentiment: Broad media coverage (Fool, Benzinga, Investing.com, Mining.com) highlights the expansion and France subsidy — useful visibility that may support liquidity and institutional attention but does not itself change fundamentals. USA Rare Earth Is Surging Today — Is the Stock a Buy for 2026?
• Neutral Sentiment: Analyst/peer comparisons (Zacks) and bullish investor write-ups (InsiderMonkey / Reddit summaries) discuss USAR’s progress vs. peers — these provide context on upside potential but vary in assumptions; read for scenario sensitivity. USA Rare Earth vs. NioCorp: Which Mining Stock Offers Better Prospects?
• Negative Sentiment: Valuation and profitability risks: recent coverage and valuation notes highlight that USAR has a history of losses and investors should consider elevated valuation metrics post-rally; a prior quarterly EPS miss and negative trailing metrics remain potential drags if project execution or timelines slip. Assessing USA Rare Earth (USAR) Valuation After Recent Share Price Rebound And DCF Discount

Analyst Upgrades and Downgrades

Several analysts have commented on USAR shares. UBS Group reissued a “buy” rating on shares of USA Rare Earth in a research report on Monday, December 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. Benchmark reissued a “buy” rating on shares of USA Rare Earth in a research report on Wednesday. William Blair began coverage on USA Rare Earth in a research report on Monday, October 20th. They issued an “outperform” rating for the company. Finally, Roth Mkm set a $40.00 price target on USA Rare Earth in a research note on Friday, October 10th. Six analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $26.33.

USA Rare Earth Stock Performance

The business’s 50 day moving average is $15.05 and its 200-day moving average is $16.76. The firm has a market capitalization of $2.56 billion, a price-to-earnings ratio of -37.17 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR) last released its earnings results on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.19).

Institutional Trading of USA Rare Earth

Several hedge funds have recently added to or reduced their stakes in USAR. International Assets Investment Management LLC bought a new position in USA Rare Earth in the 2nd quarter worth approximately $250,000. MMCAP International Inc. SPC acquired a new stake in shares of USA Rare Earth in the second quarter worth $261,000. Pier 88 Investment Partners LLC bought a new position in USA Rare Earth during the second quarter worth $588,000. SBI Securities Co. Ltd. increased its position in USA Rare Earth by 10,448.0% during the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock worth $29,000 after acquiring an additional 2,612 shares during the period. Finally, Geode Capital Management LLC raised its stake in USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock valued at $7,160,000 after purchasing an additional 627,545 shares during the last quarter.

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.