USA Rare Earth (NASDAQ:USAR) Shares Up 1.5% - Should You Buy?

Key Points

• USA Rare Earth shares rose 1.5% to $17.41 during Thursday trading, but remain below their 50-day and 200-day moving averages of $20.10 and $20.52, respectively.
• Analyst sentiment is broadly positive: nine analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83. Recent targets range from $30 to $45, although some firms have lowered their estimates.
• The development-stage critical-minerals company reported a quarterly loss of $0.12 per share, better than the expected $0.16 loss, on $5.7 million in revenue. An insider recently sold 13,000 shares, while major institutions including Vanguard and State Street increased their holdings.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price shot up 1.5% during mid-day trading on Thursday . The company traded as high as $18.01 and last traded at $17.41. Approximately 10,347,504 shares traded hands during trading, a decline of 39% from the average daily volume of 16,833,854 shares. The stock had previously closed at $17.16.

Analyst Ratings Changes

Several research firms have recently issued reports on USAR. 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 research report on Tuesday, July 21st. Northland Securities began coverage on USA Rare Earth in a report on Thursday, April 23rd. They issued an "outperform" rating and a $45.00 price target for the company. Wedbush upped their target price on USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Needham & Company LLC dropped their target price 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 raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $35.83.

USA Rare Earth Price Performance

The business has a fifty day moving average of $20.10 and a 200 day moving average of $20.52. The stock has a market cap of $3.88 billion, a PE ratio of -4.44 and a beta of 2.55.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. The company had revenue of $5.70 million during the quarter. On average, equities research analysts expect that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insider Activity at USA Rare Earth

In related news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the transaction, the director directly owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 9.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Bayshore Capital Advisors LLC acquired a new position in USA Rare Earth in the fourth quarter worth $102,378,000. Vanguard Group Inc. increased its stake in USA Rare Earth by 533.3% during the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock valued at $71,834,000 after purchasing an additional 5,083,288 shares during the last quarter. Alyeska Investment Group L.P. raised its holdings in shares of USA Rare Earth by 44.0% during the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after purchasing an additional 3,909,455 shares during the period. Inflection Point Holdings II LLC bought a new position in shares of USA Rare Earth in the 4th quarter worth about $37,188,000. Finally, State Street Corp boosted its holdings in shares of USA Rare Earth by 78.4% in the 4th quarter. State Street Corp now owns 5,032,866 shares of the company's stock valued at $59,891,000 after buying an additional 2,212,177 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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