465,000 Shares in USA Rare Earth Inc. $USAR Acquired by Encompass Capital Advisors LLC

Key Points

• Encompass Capital Advisors acquired 465,000 USA Rare Earth shares worth approximately $7.04 million, giving it a 0.21% stake. Several other hedge funds also increased or initiated positions.
• USA Rare Earth reported quarterly revenue of $5.70 million and an adjusted loss of $0.12 per share, beating analysts’ expected loss of $0.16. Analysts project a full-year loss of $0.35 per share.
• The stock opened at $14.93, well below its 50-day and 200-day moving averages. Despite the decline from its $43.98 one-year high, analysts maintain a consensus “Moderate Buy” rating with an average price target of $35.83.

Encompass Capital Advisors LLC bought a new stake in shares of USA Rare Earth Inc. (NASDAQ:USAR - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 465,000 shares of the company's stock, valued at approximately $7,038,000. Encompass Capital Advisors LLC owned about 0.21% of USA Rare Earth at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Ascentis Independent Advisors purchased a new position in shares of USA Rare Earth in the 1st quarter worth $27,000. Larson Financial Group LLC increased its position in USA Rare Earth by 217.5% during the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after acquiring an additional 1,433 shares during the last quarter. National Bank of Canada FI increased its position in 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 valued at $36,000 after acquiring an additional 1,100 shares during the last quarter. KBC Group NV bought a new position in USA Rare Earth in the first quarter valued at about $35,000. Finally, NewEdge Advisors LLC lifted its holdings in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after acquiring an additional 1,424 shares during the period.

USA Rare Earth Price Performance

USAR opened at $14.93 on Tuesday. The company has a 50 day simple moving average of $21.40 and a two-hundred day simple moving average of $20.61. The firm has a market cap of $3.33 billion, a P/E ratio of -3.81 and a beta of 2.45. USA Rare Earth Inc. has a 1-year low of $10.91 and a 1-year high of $43.98.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million for the quarter. Equities analysts anticipate that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director directly owned 18,783 shares of the company's stock, valued at $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 9.10% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

USAR has been the subject of a number of recent research reports. Cantor Fitzgerald restated an "overweight" rating and set a $40.00 price target on shares of USA Rare Earth in a research note on Thursday, June 4th. Wedbush upped their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. Roth Capital lowered their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Canaccord Genuity Group raised their price objective on shares of USA Rare Earth from $29.00 to $32.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Finally, Needham & Company LLC cut their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $35.83.

USA Rare Earth Profile

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.

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