Hsbc Holdings PLC Takes Position in USA Rare Earth Inc. $USAR

Key Points

• HSBC acquired 48,798 shares of USA Rare Earth in the first quarter, worth approximately $734,000. Several other hedge funds and advisers also increased or initiated positions.
• Analyst sentiment remains generally positive, with nine Buy ratings and one Sell rating; the consensus is “Moderate Buy” with an average price target of $35.83, despite Needham lowering its target to $33.
• USAR opened at $14.65, well below its 52-week high of $43.98. The development-stage company reported a quarterly loss of $0.12 per share on $5.7 million in revenue, while a director separately sold 13,000 shares.

Hsbc Holdings PLC acquired a new stake in USA Rare Earth Inc. (NASDAQ:USAR - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 48,798 shares of the company's stock, valued at approximately $734,000.

Other hedge funds have also added to or reduced their stakes in the company. Larson Financial Group LLC grew its stake in USA Rare Earth by 217.5% in 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 period. NewEdge Advisors LLC raised its position in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after purchasing an additional 1,424 shares during the period. Ascentis Independent Advisors acquired a new stake in shares of USA Rare Earth during the first quarter worth about $27,000. Center for Financial Planning Inc. bought a new position in shares of USA Rare Earth during the 4th quarter valued at about $28,000. Finally, Havemeyer Place LP bought a new position in shares of USA Rare Earth during the 4th quarter valued at about $33,000.

Insider Buying and Selling at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the transaction, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 9.10% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on USAR shares. Needham & Company LLC decreased their price objective on 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. Canaccord Genuity Group raised their target price 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. Weiss Ratings raised shares of USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Wall Street Zen upgraded shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $40.00 price objective on shares of USA Rare Earth in a research report on Thursday, June 4th. Nine investment 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 stock has a consensus rating of "Moderate Buy" and an average target price of $35.83.

USA Rare Earth Price Performance

USAR stock opened at $14.65 on Friday. The stock has a market capitalization of $3.27 billion, a P/E ratio of -3.74 and a beta of 2.45. The business has a 50-day moving average of $20.90 and a 200-day moving average of $20.55. USA Rare Earth Inc. has a fifty-two week low of $11.13 and a fifty-two week high of $43.98.

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

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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