USA Rare Earth (NASDAQ:USAR) Trading 1% Higher - Still a Buy?

Key Points

• Analysts show broad bullishness with six Buy ratings and one Sell, an average rating of Moderate Buy and a consensus price target of $34.33 (several firms have raised targets as high as $35), implying significant upside versus the current price.
• Insiders have been buying: Director Michael Blitzer purchased 100,000 shares at $21.44 (a 13.38% increase in his holding), and corporate insiders now own 46.60% of the company.
• Shares rose about 1% to $19.10 on Thursday with below-average volume; the company has a market cap of $2.53 billion and a negative PE (-36.73) and is a development-stage miner advancing the Round Top rare-earth and lithium project in Texas.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shot up 1% on Thursday . The company traded as high as $19.70 and last traded at $19.10. 10,177,103 shares traded hands during trading, a decline of 54% from the average session volume of 21,911,951 shares. The stock had previously closed at $18.91.

Analyst Ratings Changes

Several research firms have recently commented on USAR. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. Canaccord Genuity Group boosted their price target on shares of USA Rare Earth from $23.00 to $33.00 and gave the company a "buy" rating in a research note on Tuesday, January 27th. UBS Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Monday, December 8th. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They set a "buy" rating for the company. Finally, Roth Mkm boosted their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the stock a "buy" rating in a research report on Monday, January 26th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, USA Rare Earth presently has an average rating of "Moderate Buy" and a consensus price target of $34.33.

USA Rare Earth Trading Up 1.0%

The business has a 50-day moving average of $19.17 and a 200 day moving average of $18.40. The firm has a market capitalization of $2.53 billion, a PE ratio of -36.73 and a beta of 1.05.

Insider Activity

In other news, Director Michael Blitzer purchased 100,000 shares of the company's stock in a transaction that occurred on Thursday, January 29th. The shares were bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the transaction, the director directly owned 847,500 shares of the company's stock, valued at approximately $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Carolyn Trabuco purchased 1,300 shares of the business's stock in a transaction that occurred on Thursday, January 29th. The shares were purchased at an average price of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the acquisition, the director owned 1,300 shares of the company's stock, valued at $29,380. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently modified their holdings of the business. Pier 88 Investment Partners LLC increased its holdings in USA Rare Earth by 2.5% in the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock worth $413,000 after acquiring an additional 840 shares during the last quarter. SBI Securities Co. Ltd. boosted its position in USA Rare Earth by 20.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock worth $66,000 after purchasing an additional 936 shares during the period. Advisory Services Network LLC increased its stake in shares of USA Rare Earth by 2.0% in the third quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock worth $900,000 after purchasing an additional 1,032 shares in the last quarter. National Bank of Canada FI raised its position 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 valued at $36,000 after purchasing an additional 1,100 shares during the period. Finally, NewEdge Advisors LLC lifted its stake in shares of USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after buying an additional 1,424 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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