Jefferies Financial Group Inc. Purchases New Stake in USA Rare Earth Inc. $USAR

Key Points

• Jefferies Financial Group bought a new 62,500-share stake in USA Rare Earth during the third quarter, valued at approximately $880,000. Several other institutional investors also increased their holdings.
• USA Rare Earth reported a quarterly loss of $0.44 per share, worse than the $0.19 loss analysts expected, and revenue of $3 million versus a $6.5 million consensus estimate.
• Analysts hold a consensus “Moderate Buy” rating, with an average price target of $32.29. Shares recently traded at $8.16, after falling from a 52-week high of $32.80.

Jefferies Financial Group Inc. purchased a new stake in USA Rare Earth Inc. (NASDAQ:USAR - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 62,500 shares of the company's stock, valued at approximately $880,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Hohimer Wealth Management LLC increased its holdings in USA Rare Earth by 2.6% during the 3rd quarter. Hohimer Wealth Management LLC now owns 409,250 shares of the company's stock worth $5,762,000 after purchasing an additional 10,350 shares during the period. Alps Advisors Inc. raised its position in USA Rare Earth by 106.5% during the 3rd quarter. Alps Advisors Inc. now owns 481,333 shares of the company's stock valued at $6,777,000 after purchasing an additional 248,266 shares in the last quarter. Kestra Advisory Services LLC raised its position in USA Rare Earth by 26.0% during the 3rd quarter. Kestra Advisory Services LLC now owns 23,295 shares of the company's stock valued at $328,000 after purchasing an additional 4,809 shares in the last quarter. Commonwealth Equity Services LLC raised its position in USA Rare Earth by 3.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 58,677 shares of the company's stock valued at $826,000 after purchasing an additional 1,682 shares in the last quarter. Finally, ProShare Advisors LLC lifted its holdings in shares of USA Rare Earth by 7.6% in the 3rd quarter. ProShare Advisors LLC now owns 27,386 shares of the company's stock worth $386,000 after buying an additional 1,946 shares during the period.

USA Rare Earth Stock Up 1.1%

USAR stock traded up $0.09 during trading on Friday, hitting $8.16. 19,259,289 shares of the company's stock traded hands, compared to its average volume of 14,813,544. The firm has a market capitalization of $2.00 billion, a P/E ratio of -10.07 and a beta of 2.79. The business has a fifty day simple moving average of $12.28 and a two-hundred day simple moving average of $18.18. USA Rare Earth Inc. has a 1 year low of $6.84 and a 1 year high of $32.80.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings data on Monday, November 9th. The company reported ($0.44) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.25). The business had revenue of $3.00 million during the quarter, compared to the consensus estimate of $6.50 million. USA Rare Earth had a negative return on equity of 12.81% and a negative net margin of 716.54%. During the same period last year, the firm earned ($0.25) EPS. On average, equities research analysts predict that USA Rare Earth Inc. will post -0.74 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Texas Capital raised USA Rare Earth to a "strong-buy" rating in a research report on Tuesday, October 20th. Cantor Fitzgerald decreased their price objective on USA Rare Earth from $40.00 to $30.00 and set an "overweight" rating for the company in a report on Tuesday, November 10th. Jefferies Financial Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Wednesday. Needham & Company LLC lowered their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. Finally, Roth Capital dropped their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $32.29.

USA Rare Earth News Summary

Here's some of the latest news about USAR:

• Positive Sentiment: USA Rare Earth has begun shipping rare-earth carbonate commercially and sampling yttrium oxide, marking progress from development toward supplying customers. Federal support and new defense sourcing requirements could help create demand for domestic materials. Article: Heavy Lifting: Can USA Rare Earth Turn Its First Sales Into Big Profits?
• Neutral Sentiment: Options activity was unusually high, with investors buying 56,259 call options—55% above typical daily volume. This signals increased trading interest but does not establish a lasting change in sentiment.
• Negative Sentiment: Commercial sales are only an initial step: the company’s projects are capital-intensive, and it may take time to generate significant revenue and profits. Its latest reported quarter also fell short of expectations, with $3 million in revenue versus a $6.5 million consensus and a loss of $0.44 per share versus an expected $0.19 loss. Article: Can USA Rare Earth Stock Jump 10X?

USA Rare Earth Company Profile

USA Rare Earth, Inc. is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing. The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.

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