JPMorgan Chase & Co. Buys Shares of 42,687 USA Rare Earth Inc. $USAR

Key Points

• JPMorgan Chase bought a new stake of 42,687 shares in USA Rare Earth (~$734,000) in Q3, joining heavy institutional holders such as Alyeska (12,799,325 shares, ~$219M) while insiders now own about 46.6% of the company.
• USA Rare Earth made a strategic European push by investing €40M for roughly a 12.5% stake in French processor Carester, gaining processing access and exploring a magnet-plant in France to move further downstream into EV/defense supply chains.
• Analysts have a Moderate Buy consensus with an average price target of $29.67, but the company remains pre‑revenue, reported an EPS miss (−$0.19 vs. −$0.12), and faces regulatory and execution risks that could lead to further dilution.

JPMorgan Chase & Co. bought a new stake in shares of USA Rare Earth Inc. (NASDAQ:USAR - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 42,687 shares of the company's stock, valued at approximately $734,000.

A number of other hedge funds have also added to or reduced their stakes in USAR. Alyeska Investment Group L.P. raised its stake in USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock valued at $219,034,000 after buying an additional 3,909,455 shares during the last quarter. Altfest L J & Co. Inc. purchased a new stake in USA Rare Earth during the 3rd quarter valued at $13,554,000. Tudor Investment Corp ET AL purchased a new stake in USA Rare Earth during the 3rd quarter valued at $8,304,000. Millennium Management LLC purchased a new stake in USA Rare Earth during the 3rd quarter valued at $7,966,000. Finally, Russell Investments Group Ltd. purchased a new stake in USA Rare Earth during the 3rd quarter valued at $4,463,000.

Analysts Set New Price Targets

A number of brokerages have weighed in on USAR. Canaccord Genuity Group decreased their target price on shares of USA Rare Earth from $33.00 to $29.00 and set a "buy" rating for the company in a research note on Tuesday, March 31st. Cantor Fitzgerald boosted their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Friday, March 27th. Roth Mkm set a $25.00 target price on shares of USA Rare Earth and gave the company a "buy" rating in a research note on Thursday. Finally, Benchmark began coverage on shares of USA Rare Earth in a research note on Wednesday, January 21st. They set a "buy" rating for the company. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $29.67.

USA Rare Earth Price Performance

Shares of USAR stock opened at $16.16 on Friday. USA Rare Earth Inc. has a 1 year low of $7.70 and a 1 year high of $43.98. The firm has a fifty day moving average price of $18.69 and a 200-day moving average price of $18.82. The company has a market cap of $3.52 billion, a price-to-earnings ratio of -5.39 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings data on Monday, March 30th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter.

Key Headlines Impacting USA Rare Earth

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: Strategic European push — USA Rare Earth announced and closed on a minority investment and strategic partnership with French processor Carester, gaining processing access and oxide supply that advance its midstream rare‑earth capabilities in Europe. Press Release: Carester Investment
• Positive Sentiment: Capital deployment into Europe — USA Rare Earth invested €40M for a ~12.5% stake in Carester (reported details), strengthening feedstock/processing integration and extending its magnet supply chain. This can support future revenue pathways if commercial projects scale. Article: €40M Investment
• Positive Sentiment: Expansion plans — The company is considering building a magnet plant in France, signaling a push further downstream into magnet manufacturing (closer to EV/defense end markets). That long‑term vertical integration is strategically positive. Article: French Magnet Plant Consideration
• Positive Sentiment: Technical momentum — USAR cleared an 80+ relative strength (RS) benchmark, which can attract momentum traders and helped spark a recent sharp rally. Article: RS Rating
• Neutral Sentiment: Operational milestones and portfolio moves highlighted by media — Coverage noted commissioning of a Stillwater, Oklahoma magnet facility and completion of the Round Top acquisition in Texas; these are strategic but commercialization and cash flow remain distant. Article: Build-to-Magnet Chain Coverage
• Negative Sentiment: Government deal uncertainty — Reuters reports congressional scrutiny of the Commerce Department’s pending investment structure (which may grant equity rights to the U.S. even if funding falters). That political/regulatory uncertainty is a near‑term overhang for the stock. Article: CEO Defends Commerce Dept Investment
• Negative Sentiment: Cost and timing risk — Analyst coverage (Zacks) flagged rising development expenses and the company’s pre‑revenue status, reminding investors that losses will likely continue and that commercialization remains years away. This raises dilution and execution risk. Article: Development Expense Concerns

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco acquired 1,300 shares of the business's stock in a transaction dated Thursday, January 29th. The stock was purchased at an average price of $22.60 per share, with a total value of $29,380.00. Following the transaction, the director directly owned 1,300 shares in the company, valued at approximately $29,380. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Blitzer acquired 100,000 shares of the business's stock in a transaction dated Thursday, January 29th. The shares were acquired at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the transaction, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 46.60% of the company's stock.

About USA Rare Earth

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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