USA Rare Earth (NASDAQ:USAR) Trading 7.5% Higher – Should You Buy?

USA Rare Earth Inc. (NASDAQ:USAR) shot up 7.5% during mid-day trading on Friday . The stock traded as high as $20.50 and last traded at $20.00. 16,442,556 shares traded hands during trading, a decline of 2% from the average daily volume of 16,747,719 shares. The stock had previously closed at $18.61.

Key Headlines Impacting USA Rare Earth

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

• Positive Sentiment: Broad critical-minerals rally: U.S. rare-earth producers moved higher together in Friday trading, reflecting renewed investor interest in domestic supply chains and the strategic importance of rare-earth materials. USA Rare Earth was among the strongest movers. Rare Earth Stocks Soar on Friday: MP Materials Up 8%, USA Rare Earth Up 9%, NioCorp Up 3%. What’s Behind the Jump?
• Positive Sentiment: Analyst support: Benchmark Co. maintained its Buy rating, while Northland Securities reiterated an Outperform rating and a $45 price target. Northland’s longer-term forecasts anticipate a transition from losses to approximately breakeven earnings in fiscal 2028, supporting the bullish long-term thesis. Benchmark Co. Sticks to Its Buy Rating for USA Rare Earth
• Positive Sentiment: Additional Buy rating: Cantor Fitzgerald also rated USA Rare Earth Buy, adding to the favorable analyst sentiment surrounding the company and the materials sector. USA Rare Earth Gets a Buy from Cantor Fitzgerald
• Neutral Sentiment: Investment caveat: Coverage noted that the strategic importance of critical minerals does not automatically make the stocks attractive investments. USAR remains unprofitable, and its recent quarterly loss exceeded analyst expectations, underscoring execution and valuation risks. USA Rare Earth Gains 7%, MP Materials Jumps 8%: Here’s Why Critical Minerals Are Moving Today

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on USAR. Roth Capital lowered their price objective on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Wall Street Zen raised USA Rare Earth from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 16th. Cantor Fitzgerald reissued an “overweight” rating on shares of USA Rare Earth in a report on Tuesday. Canaccord Genuity Group lifted their price target 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. Finally, Weiss Ratings lowered USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, USA Rare Earth presently has an average rating of “Moderate Buy” and a consensus target price of $35.83.

USA Rare Earth Price Performance

The stock has a market cap of $4.46 billion, a price-to-earnings ratio of -8.23 and a beta of 2.55. The company’s 50 day moving average is $18.86 and its 200 day moving average is $20.45.

USA Rare Earth (NASDAQ:USAR) last issued its earnings results on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Sell-side analysts predict that USA Rare Earth Inc. will post -0.62 earnings per share 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 that occurred on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director owned 18,783 shares of the company’s stock, valued at $427,688.91. The trade was a 40.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in USA Rare Earth during the second quarter worth $335,795,000. Bayshore Capital Advisors LLC acquired a new stake in USA Rare Earth in the fourth quarter valued at $102,378,000. Vanguard Group Inc. increased its position in shares of USA Rare Earth by 533.3% in the fourth 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. increased its position 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 valued at $219,034,000 after buying an additional 3,909,455 shares in the last quarter. Finally, Inflection Point Holdings II LLC purchased a new position in shares of USA Rare Earth in the fourth quarter valued at $37,188,000.

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.