USA Rare Earth (NASDAQ:USAR) Shares Up 7.2% - Time to Buy?

Key Points

• USA Rare Earth shares jumped 7.2% intraday to $18.71 (high $18.91) on Monday, with 11.3 million shares trading—about 47% below the stock's average session volume; the company has a market cap of $2.48 billion and a negative P/E.
• Analyst sentiment has turned bullish—six analysts rate the stock a Buy and one a Sell, giving a consensus rating of “Moderate Buy” and an average price target of $34.33, with several firms recently lifting targets into the low-to-mid $30s.
• Insiders and institutions have been buying: directors recently purchased shares (including Michael Blitzer’s 100,000-share buy at $21.44), insiders now own 46.6% of the company, and major funds (Vanguard, Alyeska, State Street, Bayshore) materially increased or initiated positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price shot up 7.2% during mid-day trading on Monday . The stock traded as high as $18.91 and last traded at $18.71. 11,303,411 shares were traded during trading, a decline of 47% from the average session volume of 21,487,871 shares. The stock had previously closed at $17.45.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on USAR shares. Canaccord Genuity Group lifted their price target on USA Rare Earth from $23.00 to $33.00 and gave the company a "buy" rating in a research report on Tuesday, January 27th. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Monday, December 29th. Roth Mkm upped their price target on USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Monday, January 26th. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a report on Monday, December 8th. Finally, Benchmark assumed coverage on shares of USA Rare Earth in a research report on Wednesday, January 21st. They issued a "buy" rating for the company. Six investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.33.

USA Rare Earth Stock Up 7.2%

The company has a market cap of $2.48 billion, a PE ratio of -35.98 and a beta of 1.06. The stock has a 50-day moving average of $19.34 and a 200-day moving average of $18.47.

Insider Transactions at USA Rare Earth

In other USA Rare Earth news, Director Carolyn Trabuco bought 1,300 shares of the firm's stock in a transaction on Thursday, January 29th. The shares were acquired at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the purchase, the director directly owned 1,300 shares of the company's stock, valued at $29,380. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael Blitzer purchased 100,000 shares of the stock in a transaction on Thursday, January 29th. The stock was acquired at an average cost of $21.44 per share, for a total transaction of $2,144,000.00. Following the acquisition, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This represents a 13.38% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 46.60% of the stock is owned by corporate insiders.

Institutional Trading of USA Rare Earth

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bayshore Capital Advisors LLC purchased a new position in USA Rare Earth in the fourth quarter worth $102,378,000. Vanguard Group Inc. raised its position 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 in the last quarter. Alyeska Investment Group L.P. raised its position in 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 valued at $219,034,000 after purchasing an additional 3,909,455 shares in the last quarter. Inflection Point Holdings II LLC bought a new stake in USA Rare Earth during the fourth 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 worth $59,891,000 after purchasing an additional 2,212,177 shares in 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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