USA Rare Earth (NASDAQ:USAR) Shares Up 9.1% - Still a Buy?

Key Points

• USA Rare Earth shares jumped 9.1% on Monday to about $18.79 intraday (high $18.93) on ~14.7M shares traded, about 39% below its average daily volume; market cap is roughly $2.49 billion.
• Wall Street is broadly bullish with a consensus rating of “Moderate Buy” (six Buy vs. one Sell) and a consensus price target of $34.33, with several firms raising targets into the low $30s–$35 range.
• Significant insider and institutional accumulation: two directors bought shares (Michael Blitzer bought 100,000 at $21.44) and insiders own 46.6%, while large funds including Alyeska, Vanguard and State Street materially increased positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was up 9.1% during trading on Monday . The stock traded as high as $18.93 and last traded at $18.79. Approximately 14,746,296 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 24,245,721 shares. The stock had previously closed at $17.23.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Roth Mkm increased their price objective 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. Canaccord Genuity Group boosted their price objective on shares of USA Rare Earth from $23.00 to $33.00 and gave the stock a "buy" rating in a report on Tuesday, January 27th. Cantor Fitzgerald increased their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a research report on Monday, December 29th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, USA Rare Earth presently has a consensus rating of "Moderate Buy" and a consensus price target of $34.33.

USA Rare Earth Trading Up 9.1%

The stock has a market capitalization of $2.49 billion, a P/E ratio of -36.13 and a beta of 0.91. The firm's fifty day moving average is $18.28 and its 200-day moving average is $18.25.

Insider Activity at USA Rare Earth

In other USA Rare Earth news, Director Carolyn Trabuco bought 1,300 shares of USA Rare Earth stock in a transaction dated Thursday, January 29th. The shares were acquired at an average cost of $22.60 per share, with a total value of $29,380.00. Following the acquisition, 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 purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Michael Blitzer purchased 100,000 shares of the company's stock in a transaction that occurred on Thursday, January 29th. The shares were acquired at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the acquisition, the director directly 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. The SEC filing for this purchase provides additional information. 46.60% of the stock is owned by insiders.

Institutional Trading of USA Rare Earth

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

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.

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.