USA Rare Earth (NASDAQ:USAR) Trading 3.7% Higher - Still a Buy?

Key Points

• USAR shares rose 3.7% on Tuesday, reaching an intraday high of $16.05, though trading volume was well below average.
• Investor sentiment is being helped by policy and company news, including expectations that a U.S. defense-focused critical-minerals push could boost domestic rare-earth producers and USA Rare Earth’s leadership changes ahead of its planned merger with Serra Verde.
• Despite the rally, the stock faces headwinds from sector-wide oversupply fears after the IEA said rare-earth production outside China could triple by 2035, while analysts still view the name as a Moderate Buy with an average price target of $36.83.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price traded up 3.7% on Tuesday . The company traded as high as $16.05 and last traded at $15.80. Approximately 9,283,627 shares traded hands during trading, a decline of 47% from the average daily volume of 17,354,063 shares. The stock had previously closed at $15.23.

Key USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USAR is getting a lift from investor enthusiasm for domestic critical-minerals producers after reports that Trump’s defense-focused supply-chain push could boost demand for U.S.-based rare earth supply. Article Title
• Positive Sentiment: USA Rare Earth also announced a leadership transition tied to its planned merger with Serra Verde: Barbara Humpton will retire, Thras Moraitis will become CEO on Oct. 1, and Michael Blitzer was named executive chairman. The market may view the new combined-company leadership as a step toward closing the deal and executing the strategy. Article Title
• Neutral Sentiment: Additional coverage repeated the CEO succession and merger-related leadership changes, reinforcing that the company is reshaping its management ahead of the combination with Serra Verde. Article Title
• Negative Sentiment: USAR was also pressured by a broader sector selloff after the IEA said rare-earth output outside China could triple by 2035, stoking oversupply fears and weighing on rare-earth stocks. Article Title

Analysts Set New Price Targets

USAR has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $40.00 price objective on shares of USA Rare Earth in a research report on Thursday, June 4th. Roth Capital cut their target price on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $36.83.

USA Rare Earth Stock Performance

The business's fifty day moving average price is $22.31 and its 200-day moving average price is $20.58. The stock has a market cap of $3.52 billion, a PE ratio of -4.03 and a beta of 2.45.

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

Insider Activity

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the business'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 completion of the sale, the director directly owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 9.10% of the stock is currently owned by corporate insiders.

Institutional Trading of USA Rare Earth

Large investors have recently added to or reduced their stakes in the business. Tudor Investment Corp ET AL bought a new stake in shares of USA Rare Earth during the 3rd quarter valued at $8,304,000. Jennison Associates LLC bought a new position in USA Rare Earth in the 4th quarter worth $1,586,000. JPMorgan Chase & Co. purchased a new position in USA Rare Earth during the third quarter valued at $734,000. Sovran Advisors LLC lifted its position in USA Rare Earth by 119.7% during the fourth quarter. Sovran Advisors LLC now owns 489,707 shares of the company's stock valued at $5,828,000 after purchasing an additional 266,783 shares in the last quarter. Finally, Kercheville Advisors LLC grew its holdings in USA Rare Earth by 272.0% during the fourth quarter. Kercheville Advisors LLC now owns 37,200 shares of the company's stock valued at $443,000 after purchasing an additional 27,200 shares during the period.

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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