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

USA Rare Earth Inc. (NASDAQ:USAR) saw unusually large options trading activity on Tuesday. Traders acquired 60,375 call options on the stock. This represents an increase of 40% compared to the average volume of 43,077 call options.

USA Rare Earth Stock Up 8.5%

NASDAQ:USAR opened at $19.20 on Wednesday. USA Rare Earth has a twelve month low of $5.56 and a twelve month high of $43.98. The company has a market cap of $2.55 billion, a P/E ratio of -36.92 and a beta of 0.96. The business has a 50 day moving average price of $15.05 and a two-hundred day moving average price of $16.76.

USA Rare Earth (NASDAQ:USAR) last announced 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).

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: France announced backing for a USA Rare Earth plant build — reports say French support/debt or tax-credit financing of roughly $152M (via government mechanisms) to help develop the company’s European metals/alloy facility, a major de‑risk on project financing and European market entry. France backs USA Rare Earth plant build with $152M
• Positive Sentiment: Company press release: USAR’s subsidiary LCM Europe will launch a 3,750 mtpa metal and alloy production facility in Lacq, France, with the French government providing direct tax credits to finance the project — this is concrete progress on building a European value chain. USA Rare Earth Strengthens Value Chain with Support of the French Government
• Positive Sentiment: Company expansion into Europe highlighted by coverage calling the move strategic for growth and revenue diversification — market commentary frames the France plant as a catalyst for shares. USA Rare Earth Stock Jumps On Expansion: Rare Earths, Real Gains
• Positive Sentiment: Unusually large bullish options flow: traders bought ~60,375 call options today (≈40% above typical daily call volume), signaling elevated speculative or hedged bullish interest that can amplify intraday price moves.
• Positive Sentiment: Sector/geopolitical drivers: reports link rare-earth stocks (including USAR) to heightened investor attention amid U.S./Europe tensions over Greenland and supply security, which supports buyers of domestic/Western supply-chain plays. 2 Rare Earth Stocks Hot Amid Greenland Gridlock
• Neutral Sentiment: Analyst comparisons: coverage comparing USAR to NioCorp suggests USAR has operational progress (Stillwater magnet facility) and funding traction that boost its path toward U.S. commercial production — supportive but execution-dependent. USA Rare Earth vs. NioCorp: Which Mining Stock Offers Better Prospects?
• Neutral Sentiment: Market commentary and valuation pieces (including a recent valuation/DCF review and bull-case writeups) highlight upside scenarios but also raise questions on valuation vs. execution risk — useful context for longer-term investors. Assessing USA Rare Earth (USAR) Valuation After Recent Share Price Rebound And DCF Discount

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research note on Monday, December 29th. Canaccord Genuity Group raised their price target on USA Rare Earth from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. William Blair initiated coverage on USA Rare Earth in a research report on Monday, October 20th. They issued an “outperform” rating for the company. Roth Capital set a $40.00 target price on USA Rare Earth in a research note on Friday, October 10th. Finally, UBS Group restated a “buy” rating on shares of USA Rare Earth in a report on Monday, December 8th. Six equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $26.33.

Institutional Trading of USA Rare Earth

Hedge funds and other institutional investors have recently modified their holdings of the stock. Alyeska Investment Group L.P. boosted its position 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 purchasing an additional 3,909,455 shares during the last quarter. Altfest L J & Co. Inc. bought a new stake in shares of USA Rare Earth during the 3rd quarter worth approximately $13,554,000. Geode Capital Management LLC boosted its holdings in shares of 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 valued at $7,160,000 after buying an additional 627,545 shares during the last quarter. Tudor Investment Corp ET AL bought a new position in shares of USA Rare Earth in the third quarter valued at $8,304,000. Finally, Millennium Management LLC acquired a new position in USA Rare Earth during the third quarter worth $7,966,000.

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.