USA Rare Earth (NASDAQ:USAR) Shares Gap Up - Time to Buy?

Key Points

• USA Rare Earth shares opened higher, rising from a prior close of $17.69 to $18.65 before settling near $17.85, with more than 7.4 million shares traded.
• Analyst sentiment is broadly positive: ten analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $33.71.
• The development-stage company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, while revenue reached $5.82 million; analysts expect a full-year loss of $0.62 per share.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $17.69, but opened at $18.65. USA Rare Earth shares last traded at $17.8480, with a volume of 7,435,359 shares.

Analyst Ratings Changes

A number of research firms have recently issued reports on USAR. Wedbush upped their target price on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Tuesday, May 12th. Jefferies Financial Group assumed coverage on shares of USA Rare Earth in a research report on Wednesday. They set a "buy" rating and a $21.00 price target on the stock. Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Finally, Weiss Ratings downgraded shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $33.71.

USA Rare Earth Stock Performance

The business has a 50 day simple moving average of $17.70 and a 200-day simple moving average of $19.99. The firm has a market capitalization of $3.90 billion, a price-to-earnings ratio of -7.14 and a beta of 2.58.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Equities analysts predict that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total value of $296,010.00. Following the transaction, the director owned 18,783 shares of the company's stock, valued at $427,688.91. This represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 9.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Carlson Financial Inc. boosted its stake in shares of USA Rare Earth by 5.7% in the second quarter. Carlson Financial Inc. now owns 11,780 shares of the company's stock valued at $254,000 after purchasing an additional 635 shares during the period. Sterling Capital Management LLC increased its holdings in shares of USA Rare Earth by 29.1% in the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after acquiring an additional 829 shares during the last quarter. Pier 88 Investment Partners LLC increased its holdings in shares of USA Rare Earth by 2.5% in the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock valued at $413,000 after acquiring an additional 840 shares during the last quarter. SBI Securities Co. Ltd. raised 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 acquiring an additional 936 shares in the last quarter. Finally, First PREMIER Bank raised its position in shares of USA Rare Earth by 100.0% during the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company's stock worth $43,000 after acquiring an additional 1,000 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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