Texas Capital Upgrades USA Rare Earth (NASDAQ:USAR) to "Strong-Buy"

Key Points

• Texas Capital upgraded USA Rare Earth to “strong buy,” while the broader analyst consensus remains “moderate buy,” with a consensus price target of $33.71.
• Shares opened at $9.63, down 5.9%, near the company’s 12-month low of $9.41 and well below its 12-month high of $32.80.
• USA Rare Earth reported a quarterly loss of $0.15 per share, missing estimates of a $0.07 loss, on revenue of $5.82 million; analysts expect a full-year loss of $0.62 per share.

USA Rare Earth (NASDAQ:USAR - Get Free Report) was upgraded by equities researchers at Texas Capital to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other research firms have also weighed in on USAR. Jefferies Financial Group started coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price objective for the company. Needham & Company LLC decreased their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Roth Capital lowered 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 research note on Tuesday, July 21st. Finally, Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Trading Down 5.9%

NASDAQ:USAR opened at $9.63 on Tuesday. The firm has a market cap of $2.36 billion, a price-to-earnings ratio of -3.96 and a beta of 2.66. The company's 50-day moving average is $15.33 and its two-hundred day moving average is $18.96. USA Rare Earth has a 12-month low of $9.41 and a 12-month high of $32.80.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. On average, equities research analysts forecast that USA Rare Earth will post -0.62 earnings per share for the current fiscal year.

Institutional Trading of USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the business. Overbrook Management Corp acquired a new position in shares of USA Rare Earth during the 3rd quarter valued at about $3,145,000. BlackRock Inc. purchased a new position in shares of USA Rare Earth during the 2nd quarter worth about $335,795,000. Weiss Asset Management LP purchased a new position in shares of USA Rare Earth during the 1st quarter worth about $17,103,000. Encompass Capital Advisors LLC purchased a new position in shares of USA Rare Earth during the 1st quarter worth about $7,038,000. Finally, Swiss National Bank lifted its holdings in shares of USA Rare Earth by 67.6% during the 1st quarter. Swiss National Bank now owns 150,500 shares of the company's stock worth $2,278,000 after acquiring an additional 60,700 shares during the period.

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.

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