USA Rare Earth (NASDAQ:USAR) Trading Up 3.7% – Time to Buy?

USA Rare Earth Inc. (NASDAQ:USAR) was up 3.7% during trading on Tuesday . The stock traded as high as $16.05 and last traded at $15.80. 9,283,627 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 17,354,063 shares. The stock had previously closed at $15.23.

USA Rare Earth News Summary

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USAR is getting a lift from investor enthusiasm for domestic critical-minerals producers after reports that Trump’s defense-focused supply-chain push could boost demand for U.S.-based rare earth supply. Article Title
• Positive Sentiment: USA Rare Earth also announced a leadership transition tied to its planned merger with Serra Verde: Barbara Humpton will retire, Thras Moraitis will become CEO on Oct. 1, and Michael Blitzer was named executive chairman. The market may view the new combined-company leadership as a step toward closing the deal and executing the strategy. Article Title
• Neutral Sentiment: Additional coverage repeated the CEO succession and merger-related leadership changes, reinforcing that the company is reshaping its management ahead of the combination with Serra Verde. Article Title
• Negative Sentiment: USAR was also pressured by a broader sector selloff after the IEA said rare-earth output outside China could triple by 2035, stoking oversupply fears and weighing on rare-earth stocks. Article Title

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Wedbush boosted their price objective on USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. 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 target price on the stock. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price target on shares of USA Rare Earth in a report on Thursday, June 4th. Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Finally, Canaccord Genuity Group increased their price objective on shares of USA Rare Earth from $29.00 to $32.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $36.83.

USA Rare Earth Price Performance

The company has a 50-day moving average price of $22.31 and a 200 day moving average price of $20.58. The firm has a market capitalization of $3.52 billion, a PE ratio of -4.03 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR) last released its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.04. The business had revenue of $5.70 million during the quarter. As a group, research analysts anticipate that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the transaction, the director directly owned 18,783 shares in the company, valued at $427,688.91. This represents a 40.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 9.10% of the company’s stock.

Institutional Investors Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the stock. Bayshore Capital Advisors LLC purchased a new stake in USA Rare Earth in the 4th quarter worth $102,378,000. Vanguard Group Inc. grew its position in shares of USA Rare Earth by 533.3% during the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock valued at $71,834,000 after purchasing an additional 5,083,288 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of USA Rare Earth by 44.0% in the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock worth $219,034,000 after purchasing 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 in the fourth quarter worth about $37,188,000. Finally, State Street Corp lifted its position in shares of 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 buying an additional 2,212,177 shares in the last quarter.

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.