USA Rare Earth (NASDAQ:USAR) Shares Up 13.9% - Should You Buy?

Key Points

• USA Rare Earth Inc. shares surged 13.9% on Monday, reaching a last traded price of $31.59, significantly above its previous close of $27.73.
• Analysts have mixed ratings on the stock, with a consensus rating of "Moderate Buy" and an average target price of $26.00, despite some firms issuing sell ratings.
• Institutional investors are actively engaging with the stock, highlighted by a 2,437.5% increase in holdings by Geode Capital Management in the second quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price shot up 13.9% on Monday . The company traded as high as $32.25 and last traded at $31.59. 33,953,839 shares changed hands during mid-day trading, an increase of 613% from the average session volume of 4,759,583 shares. The stock had previously closed at $27.73.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on USAR. Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a research report on Wednesday, October 8th. Wall Street Zen cut USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Canaccord Genuity Group raised their price objective on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a research report on Tuesday, September 30th. William Blair initiated coverage on USA Rare Earth in a research report on Monday. They set an "outperform" rating for the company. Finally, Cantor Fitzgerald initiated coverage on USA Rare Earth in a research report on Friday, August 1st. They set an "overweight" rating and a $16.00 price target for the company. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $26.00.

USA Rare Earth Price Performance

The firm's fifty day moving average price is $19.46.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings data on Monday, August 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.05.

Insider Activity

In other news, Director Michael Blitzer sold 2,091,849 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 46.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

Several institutional investors and hedge funds have recently modified their holdings of USAR. Newtyn Management LLC purchased a new position in shares of USA Rare Earth in the 1st quarter valued at about $4,114,000. Geode Capital Management LLC increased its stake in shares of USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after purchasing an additional 627,545 shares in the last quarter. Bank of America Corp DE increased 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 purchasing an additional 199,819 shares in the last quarter. Calamos Advisors LLC purchased a new position in shares of USA Rare Earth in the 3rd quarter valued at about $3,283,000. Finally, Farther Finance Advisors LLC increased its stake in shares of USA Rare Earth by 1,461,225.0% in the 3rd quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after purchasing an additional 58,449 shares in the last quarter.

USA Rare Earth Company Profile

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.

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