USA Rare Earth (NASDAQ:USAR) Stock Jumps 7.5% – Here’s Why

Shares of USA Rare Earth Inc. (NASDAQ:USAR) traded up 7.5% during trading on Thursday. The company traded as high as $11.13 and last traded at $11.09. 23,349,228 shares changed hands during mid-day trading, an increase of 45% from the average daily volume of 16,056,706 shares. The stock had previously closed at $10.32.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on USAR shares. Jefferies Financial Group initiated coverage on USA Rare Earth in a report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 price objective for the company. Needham & Company LLC reduced their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. Cantor Fitzgerald reiterated an “overweight” rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Roth Capital lowered their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. Finally, Weiss Ratings downgraded shares of USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. Ten 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, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $33.71.

USA Rare Earth Stock Down 5.0%

The company’s fifty day simple moving average is $16.03 and its two-hundred day simple moving average is $19.08. The company has a market capitalization of $2.58 billion, a price-to-earnings ratio of -4.34 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The firm had revenue of $5.82 million for the quarter. Equities research analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in USA Rare Earth in the second quarter valued at about $335,795,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth during the second quarter worth about $32,762,000. Weiss Asset Management LP bought a new position in shares of USA Rare Earth during the 1st quarter valued at about $17,103,000. Korea Investment CORP bought a new position in shares of USA Rare Earth during the 2nd quarter valued at about $18,108,000. Finally, Bank of New York Mellon Corp bought a new position in shares of USA Rare Earth during the 2nd quarter valued at about $13,510,000.

About USA Rare Earth

USA Rare Earth, Inc is a U.S.-based critical minerals company focused on developing a domestic, vertically integrated supply chain for rare earth elements and rare earth permanent magnets. The company’s activities span the planned mining and processing of rare earth materials and the manufacture of neodymium-iron-boron (NdFeB) magnets, which are used in electric vehicles, renewable energy systems, electronics, aerospace and defense applications.

The company’s principal resource project is the Round Top rare earth and critical minerals project in Hudspeth County, Texas.