USA Rare Earth (NASDAQ:USAR) Stock Sees Heavy Call Option Buying

Key Points

• Investors bought 56,259 call options on USA Rare Earth Thursday, about 55% above the average volume of 36,259.
• Analyst views are mixed, though the consensus rating is Moderate Buy with a $32.29 price target; several firms recently cut their targets.
• Shares rose 1.1% to $8.36. The company reported a quarterly loss of $0.44 per share, missing the consensus estimate of a $0.19 loss, on revenue of $3 million.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) saw unusually large options trading on Thursday. Investors purchased 56,259 call options on the company. This represents an increase of approximately 55% compared to the average volume of 36,259 call options.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on USAR. Wall Street Zen cut shares of USA Rare Earth from a "sell" rating to a "strong sell" rating in a report on Saturday, October 24th. Cantor Fitzgerald lowered their price target on USA Rare Earth from $40.00 to $30.00 and set an "overweight" rating on the stock in a research report on Tuesday. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Wednesday, November 4th. Jefferies Financial Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Wednesday. Finally, Needham & Company LLC reduced their target price on 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. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $32.29.

USA Rare Earth Stock Up 1.1%

Shares of USAR traded up $0.09 during mid-day trading on Thursday, hitting $8.36. 15,708,438 shares of the company's stock were exchanged, compared to its average volume of 15,907,599. USA Rare Earth has a 52 week low of $6.84 and a 52 week high of $32.80. The stock's 50-day simple moving average is $12.67 and its 200-day simple moving average is $18.37. The firm has a market cap of $2.05 billion, a price-to-earnings ratio of -10.33 and a beta of 2.79.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its earnings results on Monday, November 9th. The company reported ($0.44) EPS for the quarter, missing the consensus estimate of ($0.19) by ($0.25). USA Rare Earth had a negative net margin of 716.54% and a negative return on equity of 12.81%. The firm had revenue of $3.00 million during the quarter. Analysts forecast that USA Rare Earth will post -0.62 earnings per share for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

Several large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in USA Rare Earth during the 2nd quarter valued at approximately $335,795,000. Bank of America Corp DE acquired a new position in shares of USA Rare Earth in the 2nd quarter worth approximately $32,762,000. Weiss Asset Management LP bought a new stake in shares of USA Rare Earth in the 1st quarter valued at $17,103,000. Voya Investment Management LLC boosted its stake in shares of USA Rare Earth by 1,172.6% in the 3rd quarter. Voya Investment Management LLC now owns 1,161,473 shares of the company's stock valued at $16,354,000 after purchasing an additional 1,070,208 shares during the last quarter. Finally, Korea Investment CORP acquired a new stake in shares of USA Rare Earth during the second quarter worth $18,108,000.

About USA Rare Earth

USA Rare Earth, Inc. is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing. The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.

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