USA Rare Earth (NASDAQ:USAR) Trading 20.4% Higher After Better-Than-Expected Earnings

Key Points

• USA Rare Earth Inc. shares surged 20.4% following a strong earnings report, with EPS of ($0.08) beating estimates by $0.05.
• Several analysts have issued positive ratings, including Canaccord Genuity with a "buy" rating and a price target of $17.00.
• Institutional investors significantly increased their stakes, with SBI Securities raising its position by 10,448% during the second quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded up 20.4% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $18.76 and last traded at $18.59. 4,772,981 shares changed hands during trading, an increase of 127% from the average session volume of 2,106,226 shares. The stock had previously closed at $15.44.

The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.05.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Canaccord Genuity Group assumed coverage on USA Rare Earth in a research note on Friday, June 13th. They issued a "buy" rating and a $17.00 target price on the stock. Cantor Fitzgerald assumed coverage on USA Rare Earth in a report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price target for the company. Roth Capital reissued a "buy" rating on shares of USA Rare Earth in a report on Friday, June 13th. Finally, Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "hold" rating in a report on Saturday, August 2nd.

Institutional Investors Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the company. SBI Securities Co. Ltd. raised its position in USA Rare Earth by 10,448.0% during the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock valued at $29,000 after acquiring an additional 2,612 shares in the last quarter. International Assets Investment Management LLC purchased a new position in USA Rare Earth during the second quarter valued at approximately $250,000. MMCAP International Inc. SPC purchased a new position in USA Rare Earth during the second quarter valued at approximately $261,000. Titleist Asset Management LLC purchased a new position in USA Rare Earth during the first quarter valued at approximately $145,000. Finally, Pier 88 Investment Partners LLC purchased a new position in USA Rare Earth during the second quarter valued at approximately $588,000.

USA Rare Earth Stock Up 23.5%

The stock's 50-day moving average is $12.40.

About USA Rare Earth

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.