USA Rare Earth Inc. $USAR Shares Purchased by IFP Advisors Inc

Key Points

• Institutional ownership increased: IFP Advisors boosted its USA Rare Earth stake by 477.4% to 67,896 shares, while other major investors including BlackRock, Alyeska Investment Group and State Street also increased or initiated positions.
• Shares remain under pressure: USAR fell 3.0% to $15.56 and trades below its 50-day and 200-day moving averages. The company missed quarterly EPS expectations, reporting a loss of $0.15 per share versus the consensus loss of $0.07.
• Analysts remain broadly optimistic but have reduced targets: Ten analysts rate the stock Buy and one rates it Sell, producing a Moderate Buy consensus and a $33.71 average price target. USA Rare Earth is also advancing major growth initiatives, including its $1.2 billion South Carolina magnet facility and the $300 million Serra Verde acquisition.

IFP Advisors Inc boosted its holdings in USA Rare Earth Inc. (NASDAQ:USAR - Free Report) by 477.4% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 67,896 shares of the company's stock after acquiring an additional 56,137 shares during the quarter. IFP Advisors Inc's holdings in USA Rare Earth were worth $1,465,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of USA Rare Earth during the 2nd quarter worth $335,795,000. Alyeska Investment Group L.P. increased its holdings in shares of USA Rare Earth by 44.0% in 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 purchasing an additional 3,909,455 shares in the last quarter. State Street Corp lifted its stake in shares of USA Rare Earth by 78.4% in the fourth quarter. State Street Corp now owns 5,032,866 shares of the company's stock valued at $59,891,000 after purchasing an additional 2,212,177 shares during the period. California State Teachers Retirement System lifted its stake in shares of USA Rare Earth by 3,636.5% in the second quarter. California State Teachers Retirement System now owns 4,336,177 shares of the company's stock valued at $93,575,000 after purchasing an additional 4,220,129 shares during the period. Finally, Inflection Point Holdings II LLC purchased a new stake in USA Rare Earth during the fourth quarter worth about $37,188,000.

USA Rare Earth Trading Down 3.0%

Shares of NASDAQ USAR opened at $15.56 on Friday. The company's 50-day moving average price is $17.31 and its 200 day moving average price is $19.91. USA Rare Earth Inc. has a 52 week low of $11.45 and a 52 week high of $43.98. The stock has a market cap of $3.47 billion, a price-to-earnings ratio of -6.40 and a beta of 2.58.

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

Key USA Rare Earth News

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

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Needham & Company LLC reduced their price target on shares of 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. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Roth Capital lowered their price target on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. Finally, Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, USA Rare Earth has an average rating of "Moderate Buy" and a consensus price target of $33.71.

USA Rare Earth 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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