USA Rare Earth (NASDAQ:USAR) Shares Gap Up - Here's What Happened

Key Points

• USA Rare Earth shares opened sharply higher, rising from a $15.37 close to $16.70 before settling near $16.51 on heavy volume.
• Analyst sentiment remains broadly positive: ten analysts rate the stock Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and an average price target of $33.71.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 expected loss, on $5.82 million in revenue; analysts expect a full-year loss of $0.62 per share.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $15.37, but opened at $16.70. USA Rare Earth shares last traded at $16.5080, with a volume of 5,210,231 shares traded.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on USAR shares. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Weiss Ratings downgraded shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price target for the company. Finally, Roth Capital cut their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Ten research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $33.71.

USA Rare Earth Stock Performance

The company's fifty day moving average price is $16.99 and its 200 day moving average price is $19.76. The firm has a market capitalization of $4.07 billion, a price-to-earnings ratio of -6.85 and a beta of 2.58.

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

Institutional Trading of USA Rare Earth

A number of hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in USA Rare Earth during the second quarter valued at $335,795,000. Inflection Point Holdings II LLC purchased a new stake in shares of USA Rare Earth during the 4th quarter worth about $37,188,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth during the 2nd quarter valued at about $32,762,000. Weiss Asset Management LP acquired a new position in USA Rare Earth in the first quarter worth approximately $17,103,000. Finally, Korea Investment CORP bought a new position in USA Rare Earth during the second quarter valued at approximately $18,108,000.

About USA Rare Earth

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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