USA Rare Earth (NASDAQ:USAR) Stock Price Up 7.9% – Time to Buy?

USA Rare Earth Inc. (NASDAQ:USAR) shares were up 7.9% during trading on Monday . The company traded as high as $32.07 and last traded at $26.72. Approximately 121,654,583 shares changed hands during trading, an increase of 439% from the average daily volume of 22,565,129 shares. The stock had previously closed at $24.77.

Key USA Rare Earth News

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

• Positive Sentiment: U.S. government financing package (~$1.6B) including equity stake and CHIPS/DOE involvement — de‑risks development and signals political backing for domestic heavy rare‑earth supply. GlobeNewswire LOI
• Positive Sentiment: Concurrent private financing (~$1.5B PIPE, anchored) added alongside the federal package — together the capital infusion (~$3.1B) should fund the mine‑to‑magnet buildout and shorten the “valley of death” for a previously pre‑revenue developer. MarketBeat funding analysis
• Positive Sentiment: Operational milestones accelerated: Stillwater magnet plant commissioning progressing (Line 1a underway) and Round Top production target moved earlier in company communications — investors see clearer path to revenue. CNBC interview
• Neutral Sentiment: Heavy market reaction and sector rotation: pre‑market spikes and elevated volume reflect momentum trading and repositioning within rare‑earth miners rather than immediate revenue change. Reuters coverage
• Neutral Sentiment: Company hosted shareholder/analyst calls and broad media coverage today — helpful for transparency but not a substitute for formal, binding agreements and detailed terms. Seeking Alpha transcript
• Negative Sentiment: The announcement is based on a non‑binding Letter of Intent and is subject to conditions, approvals and definitive documentation — funding and timing could change. CNBC LOI details
• Negative Sentiment: Potential dilution from equity issuance (shares and warrants tied to the deal) and long lead times—Round Top commercial production is multi‑year (company guidance points toward 2028), so material revenues remain future‑state. MarketBeat analysis
• Negative Sentiment: Recent earnings history shows the company is not yet profitable (prior EPS misses), so investors are pricing hope/strategic value rather than current cash flow. Market data

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Roth Mkm restated a “buy” rating and set a $35.00 price target on shares of USA Rare Earth in a research note on Monday. Benchmark initiated coverage on shares of USA Rare Earth in a research report on Wednesday, January 21st. They set a “buy” rating on the stock. UBS Group reiterated a “buy” rating on shares of USA Rare Earth in a research report on Monday, December 8th. Canaccord Genuity Group increased their price target on shares of USA Rare Earth from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. Finally, William Blair started coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They issued an “outperform” rating on the stock. Six investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $24.67.

USA Rare Earth Stock Up 7.9%

The company’s fifty day moving average price is $15.71 and its two-hundred day moving average price is $17.13.

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).

Institutional Investors Weigh In On USA Rare Earth

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. International Assets Investment Management LLC acquired a new position in shares of USA Rare Earth during the 2nd quarter worth $250,000. MMCAP International Inc. SPC acquired a new stake in shares of USA Rare Earth during the 2nd quarter valued at approximately $261,000. Pier 88 Investment Partners LLC purchased a new stake in shares of USA Rare Earth during the 2nd quarter worth approximately $588,000. SBI Securities Co. Ltd. grew its holdings in shares of USA Rare Earth by 10,448.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock worth $29,000 after acquiring an additional 2,612 shares during the period. Finally, Geode Capital Management LLC grew its holdings 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 purchasing 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.