Traders Purchase High Volume of Call Options on USA Rare Earth (NASDAQ:USAR)

USA Rare Earth Inc. (NASDAQ:USAR) was the target of some unusual options trading on Tuesday. Traders bought 60,375 call options on the stock. This is an increase of 40% compared to the average daily volume of 43,077 call options.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors have recently made changes to their positions in the stock. Alyeska Investment Group L.P. increased its holdings in USA Rare Earth by 44.0% during 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 during the last quarter. Vanguard Group Inc. boosted its stake in shares of USA Rare Earth by 9.9% in the third quarter. Vanguard Group Inc. now owns 953,198 shares of the company’s stock worth $16,385,000 after acquiring an additional 86,134 shares during the period. Altfest L J & Co. Inc. bought a new stake in shares of USA Rare Earth during the third quarter valued at approximately $13,554,000. Geode Capital Management LLC lifted its stake in USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock worth $7,160,000 after purchasing an additional 627,545 shares in the last quarter. Finally, Sovran Advisors LLC grew its holdings in USA Rare Earth by 119.7% during the 4th quarter. Sovran Advisors LLC now owns 489,707 shares of the company’s stock valued at $5,828,000 after buying an additional 266,783 shares in the last quarter.

USA Rare Earth Stock Up 8.5%

Shares of NASDAQ:USAR traded up $1.51 during midday trading on Tuesday, hitting $19.20. The stock had a trading volume of 22,665,053 shares, compared to its average volume of 13,151,625. USA Rare Earth has a fifty-two week low of $5.56 and a fifty-two week high of $43.98. The company has a market capitalization of $2.55 billion, a P/E ratio of -36.92 and a beta of 0.96. The company’s 50-day moving average price is $15.02 and its 200-day moving average price is $16.69.

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

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Roth Capital set a $40.00 price objective on USA Rare Earth in a report on Friday, October 10th. Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a research report on Monday, December 29th. Benchmark reiterated a “buy” rating on shares of USA Rare Earth in a research report on Monday, December 8th. Canaccord Genuity Group upped their target price on shares of USA Rare Earth from $22.00 to $23.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Finally, William Blair started coverage on USA Rare Earth in a report on Monday, October 20th. They issued an “outperform” rating for the company. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, USA Rare Earth currently has a consensus rating of “Moderate Buy” and an average price target of $26.33.

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.