USA Rare Earth (NASDAQ:USAR) Shares Up 4.4% – Here’s What Happened

USA Rare Earth Inc. (NASDAQ:USAR) shares traded up 4.4% on Tuesday . The company traded as high as $30.70 and last traded at $30.7370. 22,196,987 shares changed hands during trading, an increase of 33% from the average session volume of 16,681,837 shares. The stock had previously closed at $29.43.

USA Rare Earth News Summary

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

• Positive Sentiment: USA Rare Earth announced plans to invest about $1.2 billion in a new South Carolina magnet manufacturing and refined metals facility, a major step toward expanding U.S. rare earth production and reducing reliance on China. Reuters article
• Positive Sentiment: The South Carolina project is expected to create about 490 high-skill jobs and could benefit from state incentives, tax credits, exemptions, and confirmed energy delivery, which may improve the project’s economics. GlobeNewswire article
• Positive Sentiment: Investor sentiment around rare earth names is also improving, with coverage highlighting the sector as a strong momentum trade and noting USAR is near a buy point alongside peers. Yahoo Finance article
• Neutral Sentiment: The company has also recently outlined expansion plans in France and said it may receive up to $19.3 million in DOE funding for a pilot separation facility, adding to its broader buildout narrative. GlobeNewswire article

Analysts Set New Price Targets

Several equities analysts have weighed in on USAR shares. Canaccord Genuity Group boosted their target price on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. Cantor Fitzgerald upped their price objective on shares of USA Rare Earth from $30.00 to $35.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Roth Mkm set a $30.00 price objective on shares of USA Rare Earth in a report on Monday, April 20th. Northland Securities began coverage on USA Rare Earth in a research note on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 price objective for the company. Finally, Needham & Company LLC began coverage on USA Rare Earth in a report on Monday. They set a “buy” rating and a $39.00 target price for the company. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.00.

USA Rare Earth Price Performance

The company has a market capitalization of $6.86 billion, a price-to-earnings ratio of -7.84 and a beta of 2.38. The business’s 50 day simple moving average is $21.38 and its 200 day simple moving average is $18.96.

USA Rare Earth (NASDAQ:USAR) last issued its earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. As a group, analysts expect that USA Rare Earth Inc. will post -0.33 EPS for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bayshore Capital Advisors LLC acquired a new stake in shares of USA Rare Earth during 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 worth $71,834,000 after acquiring 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 worth $219,034,000 after acquiring an additional 3,909,455 shares in the last quarter. Inflection Point Holdings II LLC purchased a new position in shares of USA Rare Earth in the fourth quarter valued at $37,188,000. Finally, State Street Corp boosted its stake in USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock valued at $59,891,000 after acquiring an additional 2,212,177 shares during 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.