USA Rare Earth (NASDAQ:USAR) Stock Price Up 12.1% - Still a Buy?

Key Points

• USA Rare Earth shares jumped 12.1% to $14.65, with about 10.9 million shares traded. The company has a $3.27 billion market capitalization and remains unprofitable, with a reported quarterly loss of $0.12 per share.
• Analyst sentiment is broadly positive: nine analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83. Recent targets range from $32 to $45.
• USA Rare Earth is developing the Round Top rare-earth and lithium project in Texas, including planned processing and separation facilities. A company director recently sold 13,000 shares, while insiders collectively own 9.1% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price shot up 12.1% during trading on Thursday . The stock traded as high as $14.72 and last traded at $14.65. Approximately 10,867,227 shares changed hands during trading, a decline of 36% from the average daily volume of 17,030,447 shares. The stock had previously closed at $13.07.

Analysts Set New Price Targets

Several research firms have weighed in on USAR. Needham & Company LLC lowered their price target on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Canaccord Genuity Group boosted their price objective on USA Rare Earth from $29.00 to $32.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Northland Securities began coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They issued an "outperform" rating and a $45.00 target price on the stock. Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 target price on shares of USA Rare Earth in a research report on Thursday, June 4th. Finally, Weiss Ratings raised shares of USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $35.83.

USA Rare Earth Price Performance

The stock has a market capitalization of $3.27 billion, a PE ratio of -3.74 and a beta of 2.45. The firm's 50 day simple moving average is $21.09 and its 200 day simple moving average is $20.57.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The business had revenue of $5.70 million during the quarter. Analysts expect that USA Rare Earth Inc. will post -0.35 earnings per share for the current fiscal year.

Insider Transactions at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the transaction, the director directly owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 9.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On USA Rare Earth

Several institutional investors have recently bought and sold shares of USAR. Sterling Capital Management LLC increased its stake in USA Rare Earth by 29.1% in the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock worth $56,000 after purchasing an additional 829 shares during the period. Pier 88 Investment Partners LLC lifted its position in USA Rare Earth by 2.5% in the fourth quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock valued at $413,000 after purchasing an additional 840 shares during the last quarter. SBI Securities Co. Ltd. boosted its stake in shares of USA Rare Earth by 20.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock valued at $66,000 after purchasing an additional 936 shares during the period. Advisory Services Network LLC boosted its stake in shares of USA Rare Earth by 2.0% during the third quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock valued at $900,000 after purchasing an additional 1,032 shares during the period. Finally, National Bank of Canada FI grew its holdings in shares of USA Rare Earth by 110.0% in the third quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock worth $36,000 after purchasing an additional 1,100 shares during the last quarter.

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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