USA Rare Earth (NASDAQ:USAR) Stock Jumps 1.7% - What's Next?

Key Points

• USA Rare Earth shares rose 1.7% to $10.23 in mid-day trading, with volume down 51% from the average session. The company has a $2.50 billion market capitalization, while its stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: nine analysts rate the stock a Buy and one rates it a Sell, producing a consensus “Moderate Buy” rating and a $33.71 price target. However, several firms recently reduced their targets.
• The company missed its latest quarterly EPS estimate, reporting a $0.15 loss per share versus expectations of a $0.07 loss, on $5.82 million in revenue. Major institutions—including BlackRock and Bank of America—recently established positions in the stock.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) rose 1.7% during mid-day trading on Wednesday. The stock traded as high as $10.35 and last traded at $10.23. 7,844,476 shares were traded during trading, a decline of 51% from the average session volume of 15,930,326 shares. The stock had previously closed at $10.06.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Jefferies Financial Group began coverage on shares of USA Rare Earth in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price target on the stock. Roth Capital cut their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Needham & Company LLC lowered their price objective on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Finally, Weiss Ratings lowered USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, USA Rare Earth has an average rating of "Moderate Buy" and a consensus price target of $33.71.

USA Rare Earth Price Performance

The company has a market cap of $2.50 billion, a price-to-earnings ratio of -4.21 and a beta of 2.66. The stock has a 50 day simple moving average of $15.67 and a two-hundred day simple moving average of $19.05.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data 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 for the quarter. As a group, research analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in USA Rare Earth in the second quarter valued at $335,795,000. Bank of America Corp DE acquired a new position in USA Rare Earth during the 2nd quarter worth approximately $32,762,000. Weiss Asset Management LP acquired a new position in USA Rare Earth during the 1st quarter worth approximately $17,103,000. Korea Investment CORP purchased a new stake in shares of USA Rare Earth in the 2nd quarter valued at approximately $18,108,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at $13,510,000.

About USA Rare Earth

USA Rare Earth, Inc NASDAQ: USAR is developing an integrated domestic supply chain for rare earth and other critical minerals. The company's activities include the exploration and planned extraction of mineral resources, processing and separation of rare earth elements, and the production of sintered neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's flagship asset is the Round Top Mountain project in Hudspeth County, Texas.

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