RFG Advisory LLC Acquires 49,133 Shares of USA Rare Earth Inc. $USAR

Key Points

• RFG Advisory increased its USA Rare Earth stake by 459.1% in the second quarter, adding 49,133 shares to hold 59,835 shares valued at approximately $1.29 million. Other institutional investors, including BlackRock, also initiated or expanded positions.
• USA Rare Earth is advancing major growth initiatives, including a planned $1.2 billion rare-earth magnet facility in South Carolina and its $300 million-cash acquisition of Brazil’s Serra Verde, though the deal adds debt, dilution and execution risks.
• The stock opened at $15.56 after falling below its 50-day moving average, and the company reported a quarterly EPS loss of $0.15 versus an expected loss of $0.07. Despite ongoing losses and cash-burn concerns, analysts maintain a “Moderate Buy” consensus with an average price target of $33.71.

RFG Advisory LLC grew its holdings in shares of USA Rare Earth Inc. (NASDAQ:USAR - Free Report) by 459.1% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 59,835 shares of the company's stock after acquiring an additional 49,133 shares during the quarter. RFG Advisory LLC's holdings in USA Rare Earth were worth $1,291,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in USA Rare Earth during the 2nd quarter worth approximately $335,795,000. Weiss Asset Management LP acquired a new stake in USA Rare Earth in the first quarter valued at approximately $17,103,000. Encompass Capital Advisors LLC bought a new stake in shares of USA Rare Earth during the first quarter worth $7,038,000. Swiss National Bank grew its stake in shares of USA Rare Earth by 67.6% during the first quarter. Swiss National Bank now owns 150,500 shares of the company's stock worth $2,278,000 after buying an additional 60,700 shares during the last quarter. Finally, Man Group plc bought a new stake in shares of USA Rare Earth during the second quarter worth $2,562,000.

USA Rare Earth Stock Down 3.0%

Shares of NASDAQ:USAR opened at $15.56 on Friday. The firm has a market cap of $3.47 billion, a P/E ratio of -6.40 and a beta of 2.58. USA Rare Earth Inc. has a 12-month low of $11.45 and a 12-month high of $43.98. The business has a fifty day simple moving average of $17.31 and a 200 day simple moving average of $19.91.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The firm had revenue of $5.82 million during the quarter. As a group, equities research analysts expect that USA Rare Earth Inc. will post -0.62 EPS for the current year.

USA Rare Earth News Summary

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

• Positive Sentiment: USA Rare Earth broke ground on a planned $1.2 billion rare-earth magnet manufacturing facility in South Carolina. The project could strengthen the company’s U.S.-based supply chain, support future magnet production and increase its strategic importance as domestic demand for critical materials grows. USA Rare Earth breaks ground at $1.2B rare earth magnet manufacturing facility in South Carolina
• Positive Sentiment: The South Carolina project was included among nearly $2 billion of recently announced U.S. industrial investments, highlighting the broader push to expand domestic manufacturing of steel, technology and critical materials. Nearly $2B in facility investments by US Steel, USA Rare Earth and more
• Neutral Sentiment: USA Rare Earth recently completed its acquisition of Brazil’s Serra Verde for $300 million in cash plus approximately 126.8 million shares. The deal adds the Pela Ema mine to the company’s mine, magnet and processing assets, but investors are assessing whether management can handle the additional debt, dilution and production ramp-up. USA Rare Earth acquired Serra Verde
• Negative Sentiment: Shares fell below the key 50-day simple moving average as analysts cited ongoing losses, cash burn and operational risks. The technical weakness adds to concerns following the company’s latest quarterly EPS miss and the need to fund major expansion plans. USAR Falls Below 50-Day SMA
• Negative Sentiment: Rare-earth stocks broadly weakened amid signs of improving U.S.-China relations. A potential easing of trade tensions could reduce the scarcity and domestic-supply premium that had supported USAR and other U.S. rare-earth companies. Rare Earth Stocks Tumble on U.S.-China Thaw Hopes

Analysts Set New Price Targets

A number of brokerages have recently commented on USAR. Roth Capital dropped their price target on 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. Needham & Company LLC dropped their target price 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. Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Jefferies Financial Group began coverage on USA Rare Earth in a report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price target on the stock. Finally, Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-focused critical minerals company developing an integrated rare earth supply chain. Its activities center on the production of rare earth materials used in permanent magnets, electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's principal asset is the Round Top rare earth and critical minerals project in Hudspeth County, Texas. USA Rare Earth is advancing plans to mine and process ore from Round Top and produce separated rare earth oxides and other critical mineral products, including materials containing neodymium, praseodymium, dysprosium and terbium.

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