USA Rare Earth (NASDAQ:USAR) Trading 1.7% Higher - Should You Buy?

Key Points

• USAR shares rose 1.7% to $19.25 in mid-day trading, with about 14.7 million shares changing hands. The company has a $4.29 billion market capitalization and a beta of 2.55, indicating relatively high volatility.
• Analyst sentiment remains generally positive: nine analysts rate the stock a Buy and one rates it a Sell, producing a consensus “Moderate Buy” rating and a $35.83 price target. However, several firms recently lowered their targets.
• USA Rare Earth reported a quarterly loss of $0.15 per share, missing estimates by $0.08, on $5.82 million in revenue. A director also sold 13,000 shares, reducing her position by 40.9%, while institutional investors including Bank of America increased their stakes.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price traded up 1.7% during mid-day trading on Thursday . The company traded as high as $19.44 and last traded at $19.25. Approximately 14,674,010 shares changed hands during trading, a decline of 12% from the average session volume of 16,585,912 shares. The stock had previously closed at $18.92.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on USAR. Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Needham & Company LLC decreased their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Finally, Roth Capital dropped 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 report on Tuesday, July 21st. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $35.83.

USA Rare Earth Trading Up 1.7%

The stock has a fifty day moving average of $18.31 and a two-hundred day moving average of $20.12. The company has a market capitalization of $4.29 billion, a PE ratio of -7.92 and a beta of 2.55.

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 (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million during the quarter. Equities analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Insider Activity

In related news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction on 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 owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 9.10% of the company's stock.

Institutional Trading of USA Rare Earth

Several hedge funds have recently added to or reduced their stakes in USAR. NewEdge Advisors LLC boosted its position in USA Rare Earth by 158.2% during 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. purchased a new position in shares of USA Rare Earth in the second quarter worth about $223,000. Lighthouse Investment Partners LLC bought a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $329,000. Bank of America Corp DE lifted its stake in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP purchased a new stake in USA Rare Earth during the 2nd quarter valued at about $145,000.

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.

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