Wedbush Initiates Coverage on USA Rare Earth (NASDAQ:USAR)

Research analysts at Wedbush began coverage on shares of USA Rare Earth (NASDAQ:USAR) in a research report issued to clients and investors on Monday, MarketBeat reports. The brokerage set an “outperform” rating and a $29.00 price target on the stock. Wedbush’s price objective indicates a potential upside of 26.91% from the stock’s current price.

USAR has been the topic of a number of other reports. Canaccord Genuity Group cut their price target on USA Rare Earth from $33.00 to $29.00 and set a “buy” rating on the stock in a report on Tuesday, March 31st. Weiss Ratings reissued a “sell (d-)” rating on shares of USA Rare Earth in a research report on Friday, March 27th. Roth Mkm set a $30.00 price objective on USA Rare Earth in a research report on Monday. Benchmark started coverage on USA Rare Earth in a research report on Wednesday, January 21st. They issued a “buy” rating for the company. Finally, Cantor Fitzgerald raised their price objective on USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. Seven investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, USA Rare Earth has a consensus rating of “Moderate Buy” and an average price target of $31.50.

USA Rare Earth Trading Up 1.2%

Shares of NASDAQ:USAR opened at $22.85 on Monday. USA Rare Earth has a 12-month low of $8.00 and a 12-month high of $43.98. The business’s fifty day simple moving average is $18.22 and its 200-day simple moving average is $18.83. The company has a market capitalization of $4.98 billion, a PE ratio of -7.62 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings results on Monday, March 30th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million during the quarter. Research analysts predict that USA Rare Earth will post -0.25 EPS for the current year.

Insiders Place Their Bets

In other USA Rare Earth 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 price of $21.44 per share, with a total value of $2,144,000.00. Following the transaction, the director directly owned 847,500 shares of the company’s stock, valued at $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Carolyn Trabuco acquired 1,300 shares of the stock in a transaction dated Thursday, January 29th. The stock was acquired at an average cost of $22.60 per share, with a total value of $29,380.00. Following the transaction, the director directly owned 1,300 shares in the company, valued at approximately $29,380. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 46.60% of the stock is owned by company insiders.

Institutional Trading of USA Rare Earth

A number of institutional investors and hedge funds have recently added to or reduced their stakes in USAR. NewEdge Advisors LLC lifted its position in USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after acquiring an additional 1,424 shares during the period. Raymond James Financial Inc. acquired a new stake in USA Rare Earth during the 2nd quarter worth about $223,000. Lighthouse Investment Partners LLC acquired a new stake in USA Rare Earth during the 2nd quarter worth about $329,000. Bank of America Corp DE lifted its position in USA Rare Earth by 465.7% during the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock worth $2,659,000 after acquiring an additional 199,819 shares during the period. Finally, LMR Partners LLP acquired a new stake in USA Rare Earth during the 2nd quarter worth about $145,000.

Key Headlines Impacting USA Rare Earth

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

• Positive Sentiment: Signed agreement to buy Brazil’s Serra Verde for ~$2.8 billion — the deal adds a producing mine/processing operation that supplies all four magnetic rare-earths and comes with a 15‑year, 100% offtake arrangement backed by U.S. government/private capital, de‑risking near-term cash flow and accelerating USAR’s move to a mine‑to‑magnets platform. USA Rare Earth to acquire Serra Verde for $2.8bn
• Positive Sentiment: Wedbush initiated coverage with an Outperform and $29 price target, giving an analyst-driven upside narrative that supports the stock’s rally. Wedbush Initiates USA Rare Earth at Outperform With $29 Price Target
• Positive Sentiment: Market reaction and flow indicators show heavy trading and options activity around the deal, signaling strong speculative and institutional interest that has amplified the price move. MarketBeat USAR coverage
• Neutral Sentiment: CEO/media appearances and an investor M&A call provided management color on integration, offtake terms, and strategy — helpful for execution visibility but execution risk remains. CEO interview on Serra Verde deal
• Neutral Sentiment: Deal funding mix: $300M cash plus issuance of ~126.849 million new USAR shares — secures the purchase but changes capital structure (see next item on dilution). Proactive Investors on Serra Verde acquisition
• Negative Sentiment: Large equity issuance (~126.85M new shares) will dilute existing holders and could cap near‑term per‑share metrics; investors must weigh immediate production gains against dilution. Benzinga coverage of deal terms
• Negative Sentiment: Company still reported an EPS miss in its most recent quarter and carries a negative P/E; the business must convert the acquisition into profitable, predictable cash flow to justify current valuation. Earnings context

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.