USA Rare Earth (NASDAQ:USAR) Shares Up 4.4% – Should You Buy?

USA Rare Earth Inc. (NASDAQ:USAR)’s share price traded up 4.4% during mid-day trading on Tuesday . The stock 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 Roundup

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

• Positive Sentiment: USA Rare Earth finalized definitive agreements with the U.S. Department of Commerce that unlock access to up to $1.6 billion in federal support under the CHIPS Act, including up to $277 million in direct federal funding and up to $1.3 billion in senior secured loan capacity. Article: USA Rare Earth Finalizes Definitive Agreements with U.S. Department of Commerce, Unlocking Access to Up to $1.6 Billion to Advance the Leading Rare Earth Value Chain
• Positive Sentiment: The company selected Cherokee County, South Carolina, for a new $1.2 billion rare earth metals and magnet manufacturing facility, a move expected to expand U.S. production capacity and create about 490 jobs. Article: USA Rare Earth Selects Cherokee County, South Carolina for New Rare Earth Metal and Magnet Manufacturing Operation
• Positive Sentiment: Reuters and other outlets reported that the funding deal and South Carolina expansion reinforce USA Rare Earth’s strategy to build a vertically integrated domestic rare earth supply chain, which investors may view as a major strategic and political tailwind. Article: USA Rare Earth finalizes deals for up to $1.6 billion in funding under CHIPS Act
• Neutral Sentiment: The company also presented at the William Blair Growth Stock Conference, which is usually an informational event rather than a direct market catalyst. Article: USA Rare Earth, Inc. (USAR) Presents at 46th Annual William Blair Growth Stock Conference – Slideshow
• Negative Sentiment: Some coverage noted a “speed bump” in the stock after the announcement, suggesting investors may be pausing to reassess the deal structure, including federal warrants and equity participation, following a strong run in rare earth shares. Article: USA Rare Earth Hits Speed Bump As It Unlocks $1.6 Billion In U.S. Funding

Wall Street Analysts Forecast Growth

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

USA Rare Earth Stock Performance

The firm’s 50 day moving average is $21.88 and its 200-day moving average is $19.15. The stock has a market capitalization of $6.24 billion, a price-to-earnings ratio of -7.14 and a beta of 2.33.

USA Rare Earth (NASDAQ:USAR) last released its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. As a group, sell-side analysts forecast that USA Rare Earth Inc. will post -0.33 earnings per share for the current year.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the business. Bayshore Capital Advisors LLC purchased a new position in USA Rare Earth during the fourth quarter worth approximately $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. Inflection Point Holdings II LLC acquired a new position in shares of USA Rare Earth during the 4th quarter worth approximately $37,188,000. Finally, State Street Corp raised its stake in shares of USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock worth $59,891,000 after buying an additional 2,212,177 shares during the period.

About USA Rare Earth

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.