USA Rare Earth (NASDAQ:USAR) Trading Up 7.5% - Here's What Happened

Key Points

• USA Rare Earth Inc. stock saw a significant surge of 7.5% during mid-day trading, with approximately 4.1 million shares traded, marking a 52% increase from its average daily volume.
• The company posted an earnings per share of ($0.08) for the last quarter, which exceeded analysts' expectations by $0.05.
• Despite being upgraded by some analysts, others like Wall Street Zen have downgraded USA Rare Earth to a "sell" rating, while the consensus rating remains at "Buy" with a target price averaging $16.00.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price was up 7.5% during mid-day trading on Tuesday . The company traded as high as $17.29 and last traded at $17.28. Approximately 4,100,975 shares were traded during mid-day trading, an increase of 52% from the average daily volume of 2,696,972 shares. The stock had previously closed at $16.08.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on USAR shares. Wall Street Zen cut shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Cantor Fitzgerald assumed coverage on shares of USA Rare Earth in a report on Friday, August 1st. They set an "overweight" rating and a $16.00 target price for the company. Canaccord Genuity Group assumed coverage on shares of USA Rare Earth in a report on Friday, June 13th. They set a "buy" rating and a $17.00 target price for the company. Finally, Roth Capital reissued a "buy" rating on shares of USA Rare Earth in a report on Friday, June 13th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $16.00.

USA Rare Earth Stock Up 11.0%

The firm's fifty day simple moving average is $14.62.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its earnings results on Monday, August 11th. The company reported ($0.08) earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.05.

Insider Buying and Selling at USA Rare Earth

In related news, Director Michael Blitzer sold 2,091,849 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $15.75, for a total transaction of $32,946,621.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 46.60% of the stock is owned by insiders.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds and other institutional investors have recently bought and sold shares of USAR. Newtyn Management LLC bought a new stake in USA Rare Earth during the first quarter worth about $4,114,000. Geode Capital Management LLC raised its holdings in USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after buying an additional 627,545 shares during the last quarter. Bank of America Corp DE raised its holdings in USA Rare Earth by 465.7% during the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after buying an additional 199,819 shares during the last quarter. Pier 88 Investment Partners LLC bought a new stake in USA Rare Earth during the 2nd quarter valued at $588,000. Finally, Advisory Services Network LLC bought a new stake in USA Rare Earth during the 2nd quarter valued at $562,000.

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.

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