USA Rare Earth (NASDAQ:USAR) Trading 12.6% Higher - Time to Buy?

Key Points

• USA Rare Earth shares jumped 12.6% to $19.26 in heavy trading, with volume 29% above the average session level.
• Analyst sentiment is generally favorable: nine analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and a $35.83 average price target.
• The company remains development-stage and reported a quarterly loss of $0.15 per share, missing estimates by $0.08, on $5.82 million in revenue. Its Round Top project in Texas is focused on developing domestic rare-earth and lithium production.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were up 12.6% on Friday . The company traded as high as $19.54 and last traded at $19.26. Approximately 21,454,312 shares were traded during mid-day trading, an increase of 29% from the average session volume of 16,628,059 shares. The stock had previously closed at $17.11.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on USAR shares. Northland Securities assumed coverage on USA Rare Earth in a report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price target for the company. Needham & Company LLC dropped their price objective on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Wall Street Zen upgraded shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Finally, Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $35.83.

USA Rare Earth Price Performance

The company has a market capitalization of $4.30 billion, a P/E ratio of -7.93 and a beta of 2.55. The firm has a fifty day moving average price of $18.60 and a 200-day moving average price of $20.24.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. On average, research analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Insiders Place Their Bets

In related news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the sale, the director owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 9.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP bought a new position in shares of USA Rare Earth during the 2nd quarter worth $38,000. Ascentis Independent Advisors bought a new stake in USA Rare Earth in the 1st quarter valued at about $27,000. First PREMIER Bank raised its stake in USA Rare Earth by 100.0% in the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company's stock valued at $43,000 after acquiring an additional 1,000 shares during the period. Larson Financial Group LLC lifted its holdings in USA Rare Earth by 217.5% during the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after purchasing an additional 1,433 shares during the last quarter. Finally, National Bank of Canada FI lifted its holdings in USA Rare Earth by 110.0% during 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 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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