USA Rare Earth (NASDAQ:USAR) Stock Jumps 8.1% - Should You Buy?

Key Points

• USA Rare Earth shares jumped 8.1% to about $9.64, although trading volume was roughly 80% below its average daily level.
• Analyst views are mixed, but the stock carries a consensus “Moderate Buy” rating and a $33.71 price target, substantially above its current price.
• The company remains unprofitable: quarterly EPS of negative $0.15 missed expectations of negative $0.07, while revenue totaled $5.82 million. Several institutional investors, including BlackRock, recently initiated positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price shot up 8.1% during mid-day trading on Tuesday. The stock traded as high as $9.62 and last traded at $9.6350. 3,085,659 shares changed hands during trading, a decline of 80% from the average daily volume of 15,806,029 shares. The stock had previously closed at $8.91.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on USAR shares. Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Texas Capital raised USA Rare Earth to a "strong-buy" rating in a research note on Tuesday, October 20th. Wall Street Zen cut USA Rare Earth from a "sell" rating to a "strong sell" rating in a research report on Saturday. Jefferies Financial Group began coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price objective for the company. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $33.71.

USA Rare Earth Stock Up 12.2%

The company has a market capitalization of $2.45 billion, a price-to-earnings ratio of -4.12 and a beta of 2.66. The company has a 50 day simple moving average of $14.94 and a 200 day simple moving average of $18.95.

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 business had revenue of $5.82 million for the quarter. On average, research analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently modified their holdings of USAR. Overbrook Management Corp bought a new position in shares of USA Rare Earth in the 3rd quarter worth about $3,145,000. BlackRock Inc. acquired a new position in shares of USA Rare Earth in the 2nd quarter valued at about $335,795,000. Weiss Asset Management LP acquired a new position in shares of USA Rare Earth in the 1st quarter valued at about $17,103,000. Encompass Capital Advisors LLC bought a new stake in shares of USA Rare Earth during the 1st quarter valued at about $7,038,000. Finally, Man Group plc bought a new stake in shares of USA Rare Earth during the 2nd quarter valued at about $2,562,000.

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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