Northland Securities Begins Coverage on USA Rare Earth (NASDAQ:USAR)

Key Points

• Northland Securities initiated coverage on USA Rare Earth (NASDAQ:USAR) with an "Outperform" rating and a $45.00 price target, implying roughly a 77% upside from the recent $25.41 share price.
• Consensus among analysts is bullish overall—eight Buy ratings versus one Sell—giving an average rating of "Moderate Buy" and an average target price of $34.20.
• Significant insider buying was reported: Director Michael Blitzer purchased 100,000 shares at $21.44, and insiders now own about 46.6% of the company.

Equities research analysts at Northland Securities assumed coverage on shares of USA Rare Earth (NASDAQ:USAR - Get Free Report) in a note issued to investors on Thursday. The firm set an "outperform" rating and a $45.00 price target on the stock. Northland Securities' price target would suggest a potential upside of 77.10% from the company's current price.

A number of other research analysts have also recently commented on the stock. Roth Mkm set a $30.00 target price on shares of USA Rare Earth in a report on Monday. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday, March 27th. Cantor Fitzgerald raised their price objective on shares of USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a report on Friday, January 30th. Wedbush began coverage on shares of USA Rare Earth in a report on Monday. They issued an "outperform" rating and a $29.00 price objective for the company. Finally, Canaccord Genuity Group raised their price objective on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a report on Tuesday. Eight research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $34.20.

USA Rare Earth Trading Up 11.2%

USAR stock opened at $25.41 on Thursday. The stock has a market capitalization of $5.54 billion, a P/E ratio of -8.47 and a beta of 1.34. USA Rare Earth has a 12 month low of $8.00 and a 12 month high of $43.98. The firm has a 50-day moving average price of $18.30 and a 200-day moving average price of $18.87.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its earnings results on Monday, March 30th. The company reported ($0.19) 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. As a group, equities analysts predict that USA Rare Earth will post -0.71 EPS for the current fiscal year.

Insider Activity at USA Rare Earth

In other news, Director Carolyn Trabuco purchased 1,300 shares of the stock in a transaction on Thursday, January 29th. The stock was purchased at an average price of $22.60 per share, for a total transaction of $29,380.00. Following the acquisition, the director owned 1,300 shares in the company, valued at $29,380. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Michael Blitzer purchased 100,000 shares of the stock in a transaction on Thursday, January 29th. The shares were purchased at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the acquisition, the director owned 847,500 shares in the company, valued at approximately $18,170,400. The trade was a 13.38% increase in their position. The SEC filing for this purchase provides additional information. 46.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Sterling Capital Management LLC grew its position in shares of USA Rare Earth by 29.1% during the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock worth $56,000 after buying an additional 829 shares during the period. Pier 88 Investment Partners LLC grew its position in shares of USA Rare Earth by 2.5% during the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock worth $413,000 after buying an additional 840 shares during the period. SBI Securities Co. Ltd. grew its position in shares of USA Rare Earth by 20.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock worth $66,000 after buying an additional 936 shares during the period. Advisory Services Network LLC grew its position in shares of USA Rare Earth by 2.0% during the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock worth $900,000 after buying an additional 1,032 shares during the period. Finally, National Bank of Canada FI grew its position in shares of USA Rare Earth by 110.0% during the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock worth $36,000 after buying an additional 1,100 shares during the period.

USA Rare Earth Company Profile

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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