USA Rare Earth (NASDAQ:USAR) Shares Gap Up on Insider Buying Activity

USA Rare Earth Inc. (NASDAQ:USAR) gapped up before the market opened on Friday following insider buying activity. The stock had previously closed at $22.07, but opened at $22.86. USA Rare Earth shares last traded at $23.98, with a volume of 5,194,647 shares changing hands.

Specifically, Director Carolyn Trabuco purchased 1,300 shares of the business’s stock in a transaction dated Thursday, January 29th. The shares were acquired at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the acquisition, the director owned 1,300 shares of the company’s stock, valued at $29,380. The trade was a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael Blitzer purchased 100,000 shares of USA Rare Earth stock in a transaction dated Thursday, January 29th. The stock was bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the transaction, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This represents a 13.38% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Wall Street Analyst Weigh In

Several research firms have issued reports on USAR. Benchmark initiated coverage on USA Rare Earth in a research note on Wednesday, January 21st. They issued a “buy” rating on the stock. Canaccord Genuity Group increased their price target on shares of USA Rare Earth from $23.00 to $33.00 and gave the company a “buy” rating in a research report on Tuesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research report on Monday, December 29th. UBS Group reiterated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Finally, Roth Mkm increased their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a “buy” rating in a research report on Monday. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.33.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: Director Michael Blitzer bought 100,000 shares (~$2.14M at $21.44), raising his stake to ~847,500 shares — a notable insider vote of confidence. SEC Filing: Insider Purchase
• Positive Sentiment: USA Rare Earth closed a $1.5 billion PIPE financing — supplies substantial near-term capital to fund development of Round Top and downstream processing, reducing immediate financing uncertainty. GlobeNewswire: PIPE Closing
• Positive Sentiment: Federal engagement continues — Commerce Dept. LOI and reported loan/funding support from the administration reinforce policy backing for a domestic rare-earth supply chain, which underpins long-term demand expectations. ExecutiveGov: Commerce, USA Rare Earth Collaborate
• Positive Sentiment: Smaller insider buy: Director Carolyn Trabuco purchased 1,300 shares at $22.60 — adds to the insider-buying narrative supporting sentiment. SEC Filing: Trabuco Purchase
• Neutral Sentiment: Coverage paints USA Rare Earth as a “test case” for U.S.-backed mine-to-magnet supply chains — increases visibility but leaves timing and commercialization risks unresolved. Yahoo Finance: Test Case Article
• Neutral Sentiment: MarketBeat and other outlets note strong YTD momentum and multiple buy ratings/raised price targets (consensus target roughly $28) — bullish analyst framing may already be partially priced in. MarketBeat: Analyst Coverage
• Negative Sentiment: A Barron’s report that the U.S. might reconsider rare-earth price-floor support sparked sector selling and heightened near-term policy risk — this macro/policy uncertainty is the clearest immediate downside pressure on USAR. Barron’s: Price-Floor Fears

USA Rare Earth Stock Performance

The company has a market capitalization of $2.97 billion, a price-to-earnings ratio of -43.12 and a beta of 0.96. The business’s 50 day moving average is $16.55 and its 200 day moving average is $17.40.

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

Hedge Funds Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. grew its stake in USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock valued at $219,034,000 after purchasing an additional 3,909,455 shares during the last quarter. Vanguard Group Inc. raised its stake 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 worth $71,834,000 after purchasing an additional 5,083,288 shares during the last quarter. UBS Group AG lifted its holdings in shares of USA Rare Earth by 10.2% during the fourth quarter. UBS Group AG now owns 1,279,378 shares of the company’s stock worth $15,225,000 after purchasing an additional 118,812 shares during the period. Altfest L J & Co. Inc. lifted its holdings in shares of USA Rare Earth by 53.9% during the fourth quarter. Altfest L J & Co. Inc. now owns 1,213,854 shares of the company’s stock worth $14,445,000 after purchasing an additional 425,377 shares during the period. Finally, Geode Capital Management LLC boosted its position in USA Rare Earth by 2,437.5% in the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock valued at $7,160,000 after buying an additional 627,545 shares during the last quarter.

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.