USA Rare Earth (NASDAQ:USAR) Trading Up 7.5% - Time to Buy?

Key Points

• USA Rare Earth shares jumped 7.5% mid-day to $23.51 (from $21.86) on roughly 18.47 million shares traded, implying a market cap near $5.12 billion.
• Analysts are mostly bullish—MarketBeat shows a consensus "Moderate Buy" with an average price target of $34.20 after several upward revisions and individual targets up to $45.
• The company missed quarterly EPS (−$0.19 vs. −$0.12 expected) and is forecast to post about −$0.76 for the year, but significant insider buying (Director Michael Blitzer purchased 100,000 shares) and ~46.6% insider ownership may signal management confidence.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price was up 7.5% during mid-day trading on Monday . The company traded as high as $23.77 and last traded at $23.51. Approximately 18,468,201 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 18,734,414 shares. The stock had previously closed at $21.86.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on USAR shares. Canaccord Genuity Group upped their price objective on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Cantor Fitzgerald upped their price objective on USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Roth Mkm set a $30.00 price objective on USA Rare Earth in a research note on Monday, April 20th. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Friday, March 27th. Finally, Northland Securities started coverage on USA Rare Earth in a research note on Thursday. They issued an "outperform" rating and a $45.00 price objective for the company. Eight analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $34.20.

USA Rare Earth Trading Up 7.5%

The business has a 50-day moving average price of $18.43 and a 200 day moving average price of $18.75. The stock has a market cap of $5.12 billion, a PE ratio of -7.84 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings results on Monday, March 30th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million during the quarter. On average, equities analysts predict that USA Rare Earth Inc. will post -0.76 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Michael Blitzer purchased 100,000 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were purchased at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the transaction, the director directly owned 847,500 shares of the company's stock, valued at approximately $18,170,400. This represents a 13.38% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Carolyn Trabuco purchased 1,300 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were purchased at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the transaction, the director directly owned 1,300 shares in the company, valued at approximately $29,380. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 46.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Calamos Advisors LLC purchased a new stake in USA Rare Earth during the 3rd quarter worth about $3,283,000. Tudor Investment Corp ET AL purchased a new stake in USA Rare Earth during the 3rd quarter worth about $8,304,000. Farther Finance Advisors LLC lifted its holdings in USA Rare Earth by 1,461,225.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock worth $1,005,000 after purchasing an additional 58,449 shares in the last quarter. JPMorgan Chase & Co. purchased a new stake in USA Rare Earth during the 3rd quarter worth about $734,000. Finally, Guild Investment Management Inc. purchased a new stake in USA Rare Earth during the 3rd quarter worth about $1,080,000.

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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