USA Rare Earth (NASDAQ:USAR) Trading Up 8% - Here's Why

Key Points

• Shares jumped ~8%—trading as high as $18.77 and last at $18.35 on mid-day volume of about 14.9M shares, roughly in line with its 50- and 200-day moving averages (~$18.41 and $18.83).
• Analysts are broadly positive: six Buy vs. one Sell, a MarketBeat consensus of "Moderate Buy" and a consensus price target of $29.67, with Cantor Fitzgerald raising its target to $35.
• Significant insider buying and ownership: Director Michael Blitzer purchased 100,000 shares (now owns 847,500) and insiders collectively hold 46.60% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price shot up 8% on Wednesday . The company traded as high as $18.77 and last traded at $18.35. 14,856,651 shares changed hands during mid-day trading, a decline of 19% from the average session volume of 18,239,791 shares. The stock had previously closed at $16.99.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on USAR. Cantor Fitzgerald raised their price target on shares of USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a report on Friday, January 30th. Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday, March 27th. Benchmark began coverage on shares of USA Rare Earth in a research report on Wednesday, January 21st. They set a "buy" rating on the stock. Roth Mkm set a $25.00 target price on shares of USA Rare Earth and gave the stock a "buy" rating in a report on Thursday, April 9th. Finally, Canaccord Genuity Group cut their target price on shares of USA Rare Earth from $33.00 to $29.00 and set a "buy" rating for the company in a research report on Tuesday, March 31st. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $29.67.

USA Rare Earth Stock Up 8.0%

The firm has a market capitalization of $4.00 billion, a PE ratio of -6.12 and a beta of 1.34. The stock's fifty day simple moving average is $18.41 and its 200 day simple moving average is $18.83.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its 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 company had revenue of $1.64 million during the quarter.

Insider Activity at USA Rare Earth

In other news, Director Michael Blitzer bought 100,000 shares of the company's stock in a transaction that occurred on Thursday, January 29th. The stock was bought at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the acquisition, the director owned 847,500 shares of the company's stock, valued at approximately $18,170,400. This represents a 13.38% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Carolyn Trabuco purchased 1,300 shares of the firm's stock in a transaction on Thursday, January 29th. The shares were acquired at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the acquisition, the director owned 1,300 shares of the company's stock, valued at approximately $29,380. This trade represents 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 insiders.

Institutional Trading of USA Rare Earth

Several institutional investors and hedge funds have recently added to or reduced their stakes in USAR. Caitong International Asset Management Co. Ltd purchased a new position in USA Rare Earth in the 4th quarter worth approximately $39,000. Virtu Financial LLC purchased a new stake in USA Rare Earth during the 4th quarter valued at approximately $832,000. Invesco Ltd. grew its holdings in USA Rare Earth by 25.2% during the 4th quarter. Invesco Ltd. now owns 67,592 shares of the company's stock valued at $804,000 after buying an additional 13,598 shares in the last quarter. XTX Topco Ltd raised its position in shares of USA Rare Earth by 33.8% during the fourth quarter. XTX Topco Ltd now owns 53,349 shares of the company's stock valued at $635,000 after buying an additional 13,466 shares during the last quarter. Finally, SummitTX Capital L.P. purchased a new position in shares of USA Rare Earth in the fourth quarter worth $284,000.

About USA Rare Earth

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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