USA Rare Earth (NASDAQ:USAR) Shares Up 17.5% – Should You Buy?

USA Rare Earth Inc. (NASDAQ:USAR) shares were up 17.5% during mid-day trading on Tuesday . The company traded as high as $26.36 and last traded at $25.97. Approximately 51,211,777 shares changed hands during trading, an increase of 82% from the average daily volume of 28,190,822 shares. The stock had previously closed at $22.11.

USA Rare Earth News Roundup

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

• Positive Sentiment: Policy catalyst — The Trump administration’s Project Vault (a $12B critical-minerals stockpile) explicitly includes rare earths, lifting demand prospects for domestic producers and helping push rare-earth names higher. Trump Project Vault stockpile will include any minerals listed as ‘critical’ by Interior Department
• Positive Sentiment: Sector rally & positioning — Multiple outlets report rare-earth stocks jumped after announcement of a U.S. critical-minerals reserve, increasing investor appetite for USAR as a potential domestic supplier and magnet-maker. Rare earth stocks jump after Trump launches $12 billion critical minerals stockpile
• Positive Sentiment: Analyst / price-target momentum — At least one published note raised USAR’s price target substantially, and coverage highlighting a potential White House-backed financing package ($1.6B LOI cited elsewhere) is helping re-rate expectations. USA Rare Earth (USAR) price target increased by 62.64% to 37.74
• Positive Sentiment: Company positioning stories — Coverage notes USAR is well positioned to benefit from Project Vault and broader de‑risking of China-dependent supply chains, reinforcing the narrative for investors focused on strategic domestic capacity. USA Rare Earth Positioned For Project Vault Demand And Policy Support
• Neutral Sentiment: Valuation check — Analysts and retail commentary warn that USAR has already run sharply and investors should reassess valuation and execution risk after the rally; some pieces focus on whether upside is priced in. Assessing USA Rare Earth (USAR) Valuation After A Sharp Run In Recent Returns
• Negative Sentiment: Near-term cash burn and earnings risk — Zacks warns USAR is guiding to wider losses as it advances the Stillwater NdFeB magnet plant and increases spending ahead of expected 2026 commissioning, making upcoming results and financing progress key downside risks. USA Rare Earth Q4 Earnings on the Deck: How to Approach the Stock Now?

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on USAR shares. William Blair assumed coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They set an “outperform” rating for the company. Canaccord Genuity Group increased their target price on shares of USA Rare Earth from $23.00 to $33.00 and gave the stock a “buy” rating in a research report on Tuesday, January 27th. Benchmark initiated coverage on USA Rare Earth in a report on Wednesday, January 21st. They set a “buy” rating on the stock. Cantor Fitzgerald raised their price target on USA Rare Earth from $28.00 to $35.00 and gave the company an “overweight” rating in a report on Friday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. Six investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, USA Rare Earth presently has an average rating of “Moderate Buy” and a consensus target price of $34.33.

USA Rare Earth Stock Performance

The company has a market cap of $3.44 billion, a P/E ratio of -49.94 and a beta of 0.91. The business has a 50 day moving average price of $16.74 and a two-hundred day moving average price of $17.48.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.25) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.19).

Insider Transactions at USA Rare Earth

In other news, Director Michael Blitzer acquired 100,000 shares of the stock in a transaction dated Thursday, January 29th. The stock was purchased at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the purchase, the director owned 847,500 shares in the company, valued at approximately $18,170,400. The trade was a 13.38% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Carolyn Trabuco acquired 1,300 shares of the company’s stock in a transaction on Thursday, January 29th. The stock was acquired at an average price of $22.60 per share, with a total value of $29,380.00. Following the acquisition, the director owned 1,300 shares in the company, valued at approximately $29,380. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. 46.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in USAR. Calamos Advisors LLC bought a new position in shares of USA Rare Earth in the 3rd quarter worth about $3,283,000. Pier 88 Investment Partners LLC purchased a new stake in USA Rare Earth in the second quarter worth about $588,000. Farther Finance Advisors LLC increased its stake in shares of USA Rare Earth by 1,461,225.0% during the third quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company’s stock valued at $1,005,000 after purchasing an additional 58,449 shares in the last quarter. Altfest L J & Co. Inc. purchased a new stake in shares of USA Rare Earth in the 3rd quarter worth approximately $13,554,000. Finally, Sovran Advisors LLC bought a new position in USA Rare Earth during the 3rd quarter valued at approximately $3,832,000.

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.