USA Rare Earth (NASDAQ:USAR) Trading Up 9% - Here's Why

Key Points

• USA Rare Earth shares jumped 9% to $17.28, with approximately 13.6 million shares traded. The company has a $3.85 billion market capitalization and a beta of 2.55, indicating relatively high volatility.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83.
• The company reported a quarterly loss of $0.12 per share, beating the $0.16 consensus loss estimate, on $5.7 million in revenue. USA Rare Earth is developing its Round Top critical-minerals project in Texas, focused on rare earth elements, lithium and domestic processing capabilities.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) rose 9% during trading on Tuesday . The stock traded as high as $17.61 and last traded at $17.28. 13,624,242 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 16,932,818 shares. The stock had previously closed at $15.86.

Analyst Ratings Changes

Several brokerages have recently weighed in on USAR. Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Needham & Company LLC lowered 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 report on Wednesday, July 22nd. Cantor Fitzgerald restated an "overweight" rating and issued a $40.00 price objective on shares of USA Rare Earth in a research report on Thursday, June 4th. Northland Securities assumed coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price objective for the company. Finally, Wedbush upped their target price on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a report 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 company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $35.83.

USA Rare Earth Price Performance

The company has a market cap of $3.85 billion, a P/E ratio of -4.41 and a beta of 2.55. The company has a 50 day moving average of $20.50 and a 200-day moving average of $20.52.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its earnings results on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.16) by $0.04. The business had revenue of $5.70 million for the quarter. Research analysts anticipate that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insider Activity at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the transaction, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 9.10% of the company's stock.

Institutional Investors Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bayshore Capital Advisors LLC bought a new position in shares of USA Rare Earth in the 4th quarter worth $102,378,000. Vanguard Group Inc. raised its position in shares of USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock valued at $71,834,000 after buying an additional 5,083,288 shares in the last quarter. Alyeska Investment Group L.P. lifted its holdings in shares of USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after acquiring an additional 3,909,455 shares during the last quarter. Inflection Point Holdings II LLC bought a new stake in shares of USA Rare Earth during the 4th quarter worth $37,188,000. Finally, State Street Corp grew its position in USA Rare Earth by 78.4% in the fourth quarter. State Street Corp now owns 5,032,866 shares of the company's stock worth $59,891,000 after acquiring an additional 2,212,177 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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