USA Rare Earth (NASDAQ:USAR) Stock Jumps 7.5% – Time to Buy?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price was up 7.5% on Thursday. The stock traded as high as $11.13 and last traded at $11.09. 23,349,228 shares were traded 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.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on USAR. Needham & Company LLC dropped their price target 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 restated an “overweight” rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. 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. Weiss Ratings lowered USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, August 11th. Finally, Jefferies Financial Group started coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 target price on the stock. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $33.71.

USA Rare Earth Trading Up 7.5%

The firm has a market capitalization of $2.71 billion, a price-to-earnings ratio of -4.56 and a beta of 2.66. The stock’s 50 day moving average price is $16.33 and its two-hundred day moving average price is $19.17.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Gunderson Capital Management LLC purchased a new stake in shares of USA Rare Earth during the 3rd quarter worth approximately $147,000. GAMMA Investing LLC grew its holdings in shares of USA Rare Earth by 55.2% in the 3rd quarter. GAMMA Investing LLC now owns 5,738 shares of the company’s stock worth $81,000 after acquiring an additional 2,042 shares during the period. Overbrook Management Corp purchased a new position in USA Rare Earth in the 3rd quarter valued at approximately $3,145,000. Farther Finance Advisors LLC increased its stake in USA Rare Earth by 41.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 18,829 shares of the company’s stock valued at $265,000 after purchasing an additional 5,540 shares in the last quarter. Finally, MCF Advisors LLC purchased a new position in USA Rare Earth in the 2nd quarter valued at approximately $43,000.

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.