SIR Capital Management L.P. Invests $5.40 Million in USA Rare Earth Inc. $USAR

Key Points

• SIR Capital Management bought 250,414 USA Rare Earth shares worth approximately $5.4 million, joining several other institutional investors that initiated positions during the second quarter.
• USA Rare Earth reported quarterly revenue of $5.82 million and an adjusted loss of $0.15 per share, missing analysts’ expected loss of $0.07. The stock opened at $18.29, with a market capitalization of about $4.08 billion.
• Analyst sentiment remains broadly positive, with nine Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $35.83, despite recent target-price reductions from some firms.

SIR Capital Management L.P. bought a new stake in shares of USA Rare Earth Inc. (NASDAQ:USAR - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 250,414 shares of the company's stock, valued at approximately $5,404,000. SIR Capital Management L.P. owned about 0.11% of USA Rare Earth at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Legal & General Group Plc purchased a new stake in shares of USA Rare Earth during the second quarter valued at $3,157,000. The Manufacturers Life Insurance Company purchased a new position in USA Rare Earth in the 2nd quarter worth about $2,388,000. Algert Global LLC bought a new position in USA Rare Earth during the 2nd quarter valued at about $264,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in USA Rare Earth during the 2nd quarter valued at about $484,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in shares of USA Rare Earth during the 2nd quarter valued at about $187,000.

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the business'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 completion of the sale, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 9.10% of the company's stock.

USA Rare Earth Price Performance

Shares of USA Rare Earth stock opened at $18.29 on Tuesday. The company's fifty day simple moving average is $18.45 and its 200-day simple moving average is $20.16. The stock has a market capitalization of $4.08 billion, a PE ratio of -7.53 and a beta of 2.55. USA Rare Earth Inc. has a 1-year low of $11.45 and a 1-year high of $43.98.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.15) EPS 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, research analysts anticipate that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on USAR. Wall Street Zen upgraded shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Needham & Company LLC decreased 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 note on Wednesday, July 22nd. Wedbush increased their price target on USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a report on Tuesday, May 12th. Benchmark restated a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Finally, Roth Capital cut their price objective on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday, July 21st. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $35.83.

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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