USA Rare Earth (NASDAQ:USAR) Shares Up 8.2% - Here's Why

Key Points

• Shares of USA Rare Earth jumped 8.2% on Friday, trading as high as $20.88 and last at $19.95 on volume of about 19.74 million shares, with a market cap near $4.35 billion.
• Analysts hold a consensus "Moderate Buy" rating with a consensus price target of $29.67 (six Buys, one Sell), with recent targets ranging roughly from $25 to $35.
• Insider buying was reported — Director Michael Blitzer bought 100,000 shares at $21.44 and insiders now own about 46.6% of the company; USA Rare Earth is a development-stage REE and lithium project developer focused on the Round Top deposit in Texas.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price shot up 8.2% on Friday . The company traded as high as $20.88 and last traded at $19.95. 19,741,843 shares changed hands during trading, an increase of 9% from the average session volume of 18,130,717 shares. The stock had previously closed at $18.43.

Analysts Set New Price Targets

A number of brokerages recently weighed in on USAR. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They set a "buy" rating for the company. Canaccord Genuity Group reduced their target price on shares of USA Rare Earth from $33.00 to $29.00 and set a "buy" rating for the company in a report on Tuesday, March 31st. Cantor Fitzgerald raised their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a report on Friday, January 30th. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday, March 27th. Finally, Roth Mkm set a $25.00 target price on shares of USA Rare Earth and gave the stock a "buy" rating in a report on Thursday, April 9th. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, USA Rare Earth currently has a consensus rating of "Moderate Buy" and a consensus price target of $29.67.

USA Rare Earth Stock Performance

The business's 50 day moving average is $18.26 and its 200 day moving average is $18.82. The stock has a market cap of $4.35 billion, a price-to-earnings ratio of -6.65 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings data on Monday, March 30th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The company had revenue of $1.64 million for the quarter.

Insider Buying and Selling

In other news, Director Carolyn Trabuco acquired 1,300 shares of the firm's stock in a transaction that occurred on Thursday, January 29th. The stock was purchased at an average price of $22.60 per share, with a total value of $29,380.00. Following the purchase, the director owned 1,300 shares of the company's stock, valued at approximately $29,380. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Michael Blitzer acquired 100,000 shares of the firm's stock in a transaction that occurred on Thursday, January 29th. The stock was purchased at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the purchase, the director directly owned 847,500 shares in the company, valued at approximately $18,170,400. This trade represents a 13.38% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased its stake in shares of USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after acquiring an additional 1,424 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of USA Rare Earth in the second quarter worth $223,000. Lighthouse Investment Partners LLC acquired a new position in shares of USA Rare Earth in the second quarter worth $329,000. Bank of America Corp DE increased its stake in shares of USA Rare Earth by 465.7% in the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP acquired a new position in shares of USA Rare Earth in the second quarter worth $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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