USA Rare Earth Sees Unusually High Options Volume (NASDAQ:USAR)

Key Points

• USA Rare Earth Inc. experienced a significant increase in trading activity, with 51,156 call options traded—an 84% rise compared to its average volume.
• The company's stock surged to $41.82, with a trading volume of over 26 million shares, exceeding its usual average of around 3.9 million.
• Institutional investors have shown increased interest, with firms like Geode Capital Management raising their holdings by over 2,400% during the second quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was the recipient of some unusual options trading on Monday. Traders acquired 51,156 call options on the company. This represents an increase of 84% compared to the average daily volume of 27,758 call options.

USA Rare Earth Price Performance

USAR traded up $9.21 during trading on Monday, hitting $41.82. The stock had a trading volume of 26,728,380 shares, compared to its average volume of 3,932,938. The stock has a 50 day simple moving average of $17.27. USA Rare Earth has a one year low of $5.56 and a one year high of $43.98.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released 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.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on USAR. Cantor Fitzgerald began coverage on USA Rare Earth in a research note on Friday, August 1st. They set an "overweight" rating and a $16.00 target price for the company. Canaccord Genuity Group lifted their target price on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a research note on Tuesday, September 30th. Roth Capital set a $40.00 target price on USA Rare Earth in a research note on Friday. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Wednesday, October 8th. Three research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, USA Rare Earth currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.00.

Insiders Place Their Bets

In other USA Rare Earth news, Director Michael Blitzer sold 2,091,849 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 46.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On USA Rare Earth

A number of institutional investors have recently modified their holdings of the business. Newtyn Management LLC acquired a new position in shares of USA Rare Earth during the 1st quarter worth $4,114,000. Geode Capital Management LLC raised its holdings in shares of 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 worth $7,160,000 after buying an additional 627,545 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of 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 worth $2,659,000 after buying an additional 199,819 shares in the last quarter. Pier 88 Investment Partners LLC acquired a new position in shares of USA Rare Earth during the 2nd quarter worth $588,000. Finally, Advisory Services Network LLC acquired a new position in shares of USA Rare Earth during the 2nd quarter worth $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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.