USA Rare Earth (NASDAQ:USAR) Trading Up 7.3% - Here's What Happened

Key Points

• USA Rare Earth shares rose 7.3% to $18.36 in midday trading, reaching as high as $18.49, though volume was 76% below the average session level.
• Analyst sentiment remains broadly positive: nine analysts rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83. Needham reduced its target to $33 while maintaining a Buy rating.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 loss expected, on revenue of $5.82 million. A director also sold 13,000 shares, while major investors including BlackRock and Vanguard recently built or initiated positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) traded up 7.3% on Friday . The company traded as high as $18.49 and last traded at $18.36. 3,888,423 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 16,528,635 shares. The stock had previously closed at $17.11.

Wall Street Analysts Forecast Growth

Several research firms have commented on USAR. Cantor Fitzgerald reissued an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Weiss Ratings lowered shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Needham & Company LLC dropped their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Finally, Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $35.83.

USA Rare Earth Price Performance

The company has a market cap of $4.23 billion, a price-to-earnings ratio of -7.80 and a beta of 2.55. The stock has a 50-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 the consensus estimate of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. Sell-side analysts expect that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director directly owned 18,783 shares in the company, valued at $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 9.10% of the company's stock.

Institutional Investors Weigh In On USA Rare Earth

Several large investors have recently added to or reduced their stakes in USAR. BlackRock Inc. bought a new stake in USA Rare Earth during the 2nd quarter worth approximately $335,795,000. Bayshore Capital Advisors LLC purchased a new position in USA Rare Earth in the fourth quarter valued at about $102,378,000. Vanguard Group Inc. lifted its stake in USA Rare Earth by 533.3% in the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock valued at $71,834,000 after purchasing an additional 5,083,288 shares during the last quarter. Alyeska Investment Group L.P. boosted its holdings in USA Rare Earth by 44.0% in the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after buying an additional 3,909,455 shares during the period. Finally, Inflection Point Holdings II LLC purchased a new stake in shares of USA Rare Earth in the fourth quarter worth about $37,188,000.

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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