USA Rare Earth (NASDAQ:USAR) Stock Price Up 11.7% - Here's Why

Key Points

• Share jump: USA Rare Earth rose 11.7% on Monday to $15.80 (intraday high $16.14) with about 11.65 million shares traded, roughly in line with its average volume.
• Analyst view: The stock has a consensus rating of "Moderate Buy" (six Buys, one Sell) and an average price target of $26.33, with recent notes ranging from Canaccord raising its target to $23 to Roth setting a $40 target while Weiss maintained a Sell (D-).
• Company fundamentals: USA Rare Earth is a development-stage REE and lithium developer focused on the Round Top deposit in West Texas, with a $2.10 billion market cap, negative EPS (reported -$0.25 last quarter), and notable institutional buying such as Alyeska increasing its stake by 44%.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) rose 11.7% on Monday . The company traded as high as $16.14 and last traded at $15.80. Approximately 11,654,940 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 11,515,792 shares. The stock had previously closed at $14.15.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on USAR. Canaccord Genuity Group lifted their price objective on USA Rare Earth from $22.00 to $23.00 and gave the stock a "buy" rating in a report on Friday, November 7th. Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. Roth Capital set a $40.00 price objective on USA Rare Earth in a report on Friday, October 10th. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a research note on Monday, December 8th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $26.33.

USA Rare Earth Price Performance

The firm's 50-day moving average is $15.26 and its 200-day moving average is $16.26. The company has a market capitalization of $2.10 billion, a P/E ratio of -30.38 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.19).

Institutional Investors Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently made changes to their positions in the stock. Alyeska Investment Group L.P. boosted its holdings in USA Rare Earth by 44.0% in 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 during the last quarter. Vanguard Group Inc. lifted its stake in shares of USA Rare Earth by 9.9% in the third quarter. Vanguard Group Inc. now owns 953,198 shares of the company's stock worth $16,385,000 after buying an additional 86,134 shares in the last quarter. Altfest L J & Co. Inc. acquired a new stake in shares of USA Rare Earth in the third quarter valued at approximately $13,554,000. Geode Capital Management LLC increased its position in USA Rare Earth by 2,437.5% during the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock worth $7,160,000 after purchasing an additional 627,545 shares during the last quarter. Finally, Tudor Investment Corp ET AL acquired a new position in USA Rare Earth in the third quarter valued at approximately $8,304,000.

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.

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