Stock Traders Buy High Volume of Call Options on USA Rare Earth (NASDAQ:USAR)

USA Rare Earth Inc. (NASDAQ:USAR) was the recipient of unusually large options trading on Thursday. Stock investors purchased 56,259 call options on the company. This is an increase of 55% compared to the typical volume of 36,259 call options.

Key Stories Impacting USA Rare Earth

Here are a few of the latest stories about USAR:

• Positive Sentiment: USA Rare Earth has begun shipping rare-earth carbonate commercially and sampling yttrium oxide, marking progress from development toward supplying customers. Federal support and new defense sourcing requirements could help create demand for domestic materials. Article: Heavy Lifting: Can USA Rare Earth Turn Its First Sales Into Big Profits?
• Positive Sentiment: The approaching expiration of a U.S.-China rare-earth truce may renew attention on supply-chain security, potentially strengthening the strategic case for domestic producers such as USAR. Article: USA Rare Earth Tenfold Bet Grows as China Rare Earth Truce Nears Expiry
• Negative Sentiment: Commercial sales are only an initial step: the company’s projects are capital-intensive, and it may take time to generate significant revenue and profits. Its latest reported quarter also fell short of expectations, with $3 million in revenue versus a $6.5 million consensus and a loss of $0.44 per share versus an expected $0.19 loss. Article: Can USA Rare Earth Stock Jump 10X?

Hedge Funds Weigh In On USA Rare Earth

Several institutional investors have recently bought and sold shares of USAR. Carlson Financial Inc. increased its stake in USA Rare Earth by 5.7% during the 2nd quarter. Carlson Financial Inc. now owns 11,780 shares of the company’s stock worth $254,000 after buying an additional 635 shares during the period. First PREMIER Bank boosted its position in USA Rare Earth by 100.0% in the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company’s stock valued at $43,000 after buying an additional 1,000 shares during the period. State of Wyoming boosted its position in USA Rare Earth by 100.4% in the 1st quarter. State of Wyoming now owns 2,509 shares of the company’s stock valued at $38,000 after buying an additional 1,257 shares during the period. Ameritas Advisory Services LLC boosted its position in USA Rare Earth by 276.3% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company’s stock valued at $43,000 after buying an additional 1,459 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in shares of USA Rare Earth by 1.9% in the third quarter. Russell Investments Group Ltd. now owns 78,949 shares of the company’s stock worth $1,112,000 after acquiring an additional 1,483 shares in the last quarter.

USA Rare Earth Stock Up 1.1%

USAR opened at $8.16 on Friday. USA Rare Earth has a 52 week low of $6.84 and a 52 week high of $32.80. The business has a fifty day simple moving average of $12.28 and a 200-day simple moving average of $18.18. The firm has a market cap of $2.00 billion, a P/E ratio of -10.07 and a beta of 2.79.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings data on Monday, November 9th. The company reported ($0.44) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.25). The firm had revenue of $3.00 million during the quarter, compared to analyst estimates of $6.50 million. USA Rare Earth had a negative net margin of 716.54% and a negative return on equity of 12.81%. During the same period in the previous year, the firm posted ($0.25) earnings per share. Sell-side analysts expect that USA Rare Earth will post -0.74 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Cantor Fitzgerald reduced their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set an “overweight” rating on the stock in a report on Tuesday. Texas Capital upgraded shares of USA Rare Earth to a “strong-buy” rating in a research report on Tuesday, October 20th. Needham & Company LLC dropped their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. Zacks Research downgraded shares of USA Rare Earth from a “hold” rating to a “strong sell” rating in a research note on Wednesday. Finally, Wall Street Zen lowered shares of USA Rare Earth from a “sell” rating to a “strong sell” rating in a report on Saturday, October 24th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, USA Rare Earth has an average rating of “Moderate Buy” and a consensus target price of $32.29.

USA Rare Earth Company Profile

USA Rare Earth, Inc. is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing. The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.