USA Rare Earth Inc (NASDAQ:USAR) stock is down 4.2% premarket to trade at $10.80, heading for a 52-week low and a sixth-straight loss. There's no specific catalyst today other than broad market pressures, with the high beta sector falling on hard times in recent months since the government green light from May. Sector peer MP Materials (MP) is 2.6% lower as well.
USAR is down 70% in the last 12 months, a far cry from its Oct. 14 record high at $42. More pressure could come from overdue downgrades, with eight of the nine brokerages in coverage maintaining a "strong buy" rating and zero "sells" on the books. Plus, the consensus 12-month price target of $35.13 is a 211% premium from its current perch.
If you're looking for a silver lining, the steady downtrend has taken the stock's 14-Day Relative Strength Index (RSI) down to 20, deep in "oversold" territory.
However, there's a massive skew in the options pits too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 3.15 ranks in the 92nd percentile of its annual range. An unwinding of this optimism could provide additional headwinds.
