USA Rare Earth (NASDAQ:USAR) Shares Up 7.9% – What’s Next?

USA Rare Earth Inc. (NASDAQ:USAR)’s share price traded up 7.9% during trading on Monday . The stock traded as high as $32.07 and last traded at $26.72. 121,654,583 shares were traded during mid-day trading, an increase of 439% from the average session 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

Analyst Ratings Changes

A number of research firms have recently issued reports on USAR. Benchmark initiated coverage on shares of USA Rare Earth in a research note on Wednesday, January 21st. They issued a “buy” rating on the stock. Canaccord Genuity Group boosted their target price on USA Rare Earth from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Friday, November 7th. 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. William Blair initiated coverage on USA Rare Earth in a research note on Monday, October 20th. They issued an “outperform” rating for the company. Finally, UBS Group reiterated 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $24.67.

USA Rare Earth Trading Up 7.9%

The firm’s fifty day simple moving average is $15.71 and its 200 day simple moving average is $17.13.

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

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the stock. CWM LLC acquired a new stake in USA Rare Earth during the fourth quarter worth approximately $69,000. Altfest L J & Co. Inc. grew its position in shares of USA Rare Earth by 53.9% in the 4th quarter. Altfest L J & Co. Inc. now owns 1,213,854 shares of the company’s stock valued at $14,445,000 after buying an additional 425,377 shares during the last quarter. Weaver Capital Management LLC acquired a new stake in USA Rare Earth during the 4th quarter worth $1,190,000. Newbridge Financial Services Group Inc. lifted its position in USA Rare Earth by 2,333.3% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 6,205 shares of the company’s stock valued at $74,000 after acquiring an additional 5,950 shares during the last quarter. Finally, Sovran Advisors LLC boosted its stake in USA Rare Earth by 119.7% in the fourth quarter. Sovran Advisors LLC now owns 489,707 shares of the company’s stock valued at $5,828,000 after acquiring an additional 266,783 shares in the last quarter.

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.