USA Rare Earth (NASDAQ:USAR) Shares Up 17.9% - Here's Why

Key Points

• Shares jumped 17.9% on Thursday to $25.97 (intraday high $26.02) on heavy trading of 30.13 million shares, about 61% above average volume.
• Analyst sentiment is largely positive — eight Buy ratings vs. one Sell and an average price target of $34.20 — with several recent price-target increases and new coverage (e.g., Cantor Fitzgerald to $35, Northland initiating at $45).
• USA Rare Earth is a development-stage rare-earth and lithium company focused on the Round Top project and remains unprofitable, reporting a quarterly EPS of -$0.19 (miss) on $1.64 million revenue and an expected FY EPS of -0.76.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shot up 17.9% on Thursday . The company traded as high as $26.02 and last traded at $25.97. 30,132,806 shares were traded during trading, an increase of 61% from the average session volume of 18,755,896 shares. The stock had previously closed at $22.03.

Analysts Set New Price Targets

A number of brokerages recently weighed in on USAR. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Friday, March 27th. Northland Securities began coverage on USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price objective for the company. Cantor Fitzgerald upped their price objective on USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. Benchmark began coverage on USA Rare Earth in a research note on Wednesday, January 21st. They set a "buy" rating for the company. Finally, Roth Mkm set a $30.00 price objective on USA Rare Earth in a research note on Monday, April 20th. Eight equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, USA Rare Earth has an average rating of "Moderate Buy" and an average target price of $34.20.

USA Rare Earth Stock Up 17.9%

The business has a 50 day simple moving average of $18.66 and a 200 day simple moving average of $18.65. The company has a market capitalization of $5.66 billion, a PE ratio of -8.66 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Monday, March 30th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The business had revenue of $1.64 million during the quarter. Equities analysts expect that USA Rare Earth Inc. will post -0.76 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in USAR. Sterling Capital Management LLC grew its holdings in shares of USA Rare Earth by 29.1% during the first quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after buying an additional 829 shares during the last quarter. Pier 88 Investment Partners LLC raised its stake in USA Rare Earth by 2.5% in the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock worth $413,000 after acquiring an additional 840 shares during the last quarter. SBI Securities Co. Ltd. lifted its position in USA Rare Earth by 20.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock worth $66,000 after acquiring an additional 936 shares during the period. Advisory Services Network LLC lifted its position in USA Rare Earth by 2.0% during the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock worth $900,000 after acquiring an additional 1,032 shares during the period. Finally, National Bank of Canada FI grew its stake in USA Rare Earth by 110.0% during the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock valued at $36,000 after purchasing an additional 1,100 shares during the last quarter.

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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