USA Rare Earth (NASDAQ:USAR) Shares Up 6.1% - Should You Buy?

Key Points

• USA Rare Earth shares rose 6.1% to about $19.41, with a market capitalization of approximately $4.33 billion.
• Analyst sentiment remains positive, with nine Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $35.83.
• The company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, while an insider sold 13,000 shares; several institutional investors nonetheless increased or initiated positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was up 6.1% during mid-day trading on Tuesday . The company traded as high as $19.47 and last traded at $19.41. 13,412,109 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 16,610,254 shares. The stock had previously closed at $18.29.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Wedbush increased 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. Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Roth Capital cut their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research report on Tuesday, July 21st. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Finally, Needham & Company LLC decreased their price objective on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, USA Rare Earth has a consensus rating of "Moderate Buy" and an average target price of $35.83.

USA Rare Earth Trading Up 6.1%

The company has a market cap of $4.33 billion, a P/E ratio of -7.99 and a beta of 2.55. The business has a 50 day moving average price of $18.45 and a 200-day moving average price of $20.16.

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

Insider Buying and Selling at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the transaction, the director directly owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently bought and sold shares of the business. NewEdge Advisors LLC raised its stake in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after buying an additional 1,424 shares during the period. Raymond James Financial Inc. bought a new position in shares of USA Rare Earth during the 2nd quarter worth approximately $223,000. Lighthouse Investment Partners LLC bought a new position in shares of USA Rare Earth during the 2nd quarter worth approximately $329,000. Bank of America Corp DE increased its holdings in shares of USA Rare Earth by 465.7% during the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP acquired a new position in shares of USA Rare Earth during the 2nd quarter worth approximately $145,000.

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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