USA Rare Earth (NASDAQ:USAR) Trading Up 20.4% 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 shot up 20.4% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. 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) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.05.

Wall Street Analysts Forecast Growth

Several research firms recently commented on USAR. Canaccord Genuity Group began coverage on shares of USA Rare Earth in a research note on Friday, June 13th. They issued a "buy" rating and a $17.00 price target on the stock. Wall Street Zen downgraded shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research note on Friday, June 13th. Finally, Cantor Fitzgerald assumed coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They set an "overweight" rating and a $16.00 price objective on the stock.

Insider Activity at USA Rare Earth

In other news, Director Michael Blitzer sold 2,091,849 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $15.75, for a total value of $32,946,621.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. LMR Partners LLP bought a new position in shares of USA Rare Earth in the second quarter worth about $145,000. Bank of America Corp DE lifted its holdings in shares of USA Rare Earth by 465.7% in the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Lighthouse Investment Partners LLC bought a new position in USA Rare Earth in the 2nd quarter valued at approximately $329,000. Raymond James Financial Inc. bought a new position in USA Rare Earth in the 2nd quarter valued at approximately $223,000. Finally, NewEdge Advisors LLC raised its holdings in USA Rare Earth by 158.2% in 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 during the last quarter.

USA Rare Earth Trading Down 3.3%

The business's fifty day moving average is $12.99.

USA Rare Earth Company Profile

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.