USA Rare Earth Sees Unusually High Options Volume (NASDAQ:USAR)

USA Rare Earth Inc. (NASDAQ:USAR) was the recipient of some unusual options trading activity on Thursday. Traders acquired 56,259 call options on the stock. This is an increase of 55% compared to the average daily volume of 36,259 call options.

USA Rare Earth Trading Up 1.1%

Shares of USAR stock traded up $0.09 during trading on Thursday, reaching $8.36. 15,708,438 shares of the company’s stock traded hands, compared to its average volume of 15,907,599. USA Rare Earth has a 1 year low of $6.84 and a 1 year high of $32.80. The firm’s 50-day moving average is $12.67 and its 200 day moving average is $18.37. The company has a market capitalization of $2.05 billion, a P/E ratio of -10.33 and a beta of 2.79.

USA Rare Earth (NASDAQ:USAR) last posted its earnings results on Monday, November 9th. The company reported ($0.44) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.25). The firm had revenue of $3.00 million for the quarter. USA Rare Earth had a negative return on equity of 12.81% and a negative net margin of 716.54%. As a group, sell-side analysts predict that USA Rare Earth will post -0.62 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on USAR shares. Texas Capital raised shares of USA Rare Earth to a “strong-buy” rating in a research report on Tuesday, October 20th. Wall Street Zen downgraded shares of USA Rare Earth from a “sell” rating to a “strong sell” rating in a report on Saturday, October 24th. Roth Capital dropped their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a report on Wednesday, November 4th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of USA Rare Earth in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, USA Rare Earth currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.29.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of USAR. Ascentis Independent Advisors bought a new stake in USA Rare Earth during the 1st quarter valued at $27,000. KBC Group NV purchased a new stake in shares of USA Rare Earth in the 1st quarter worth about $35,000. State of Wyoming grew its position in shares of USA Rare Earth by 100.4% in the 1st quarter. State of Wyoming now owns 2,509 shares of the company’s stock worth $38,000 after buying an additional 1,257 shares during the period. Allworth Financial LP bought a new position in shares of USA Rare Earth during the second quarter valued at approximately $38,000. Finally, First PREMIER Bank lifted its holdings in shares of USA Rare Earth by 100.0% during the second quarter. First PREMIER Bank now owns 2,000 shares of the company’s stock valued at $43,000 after purchasing an additional 1,000 shares during the last quarter.

USA Rare Earth Company Profile

USA Rare Earth, Inc. is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing. The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.