USA Rare Earth (NASDAQ:USAR) Trading 5.5% Higher - What's Next?

Key Points

• USA Rare Earth shares rose 5.5% to $14.93 in mid-day trading, though volume was 49% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with nine Buy ratings and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $35.83.
• The development-stage company reported a quarterly loss of $0.12 per share, beating estimates, on $5.70 million in revenue. A company director recently sold 13,000 shares, reducing her position by 40.9%.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded up 5.5% during mid-day trading on Monday . The stock traded as high as $15.30 and last traded at $14.93. 8,695,048 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 17,119,061 shares. The stock had previously closed at $14.15.

Analyst Ratings Changes

Several research analysts have recently weighed in on USAR shares. Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Canaccord Genuity Group lifted their target price on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. 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, July 21st. Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Finally, Wedbush raised their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 12th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $35.83.

USA Rare Earth Trading Up 5.5%

The company has a market capitalization of $3.33 billion, a price-to-earnings ratio of -3.81 and a beta of 2.45. The stock's 50 day moving average price is $21.53 and its 200 day moving average price is $20.63.

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

Insider Activity

In other news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the sale, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This represents a 40.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 9.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Tudor Investment Corp ET AL bought a new stake in USA Rare Earth in the third quarter valued at approximately $8,304,000. Weiss Asset Management LP bought a new position in shares of USA Rare Earth during the 1st quarter worth approximately $17,103,000. Jennison Associates LLC bought a new position in shares of USA Rare Earth during the 4th quarter worth approximately $1,586,000. JPMorgan Chase & Co. acquired a new position in shares of USA Rare Earth during the 3rd quarter worth approximately $734,000. Finally, Sovran Advisors LLC raised its stake in USA Rare Earth by 119.7% in the 4th quarter. Sovran Advisors LLC now owns 489,707 shares of the company's stock valued at $5,828,000 after acquiring an additional 266,783 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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