USA Rare Earth (NASDAQ:USAR) Shares Gap Up After Insider Buying Activity

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $22.07, but opened at $22.86. USA Rare Earth shares last traded at $23.98, with a volume of 5,194,647 shares.

Specifically, Director Carolyn Trabuco purchased 1,300 shares of the stock in a transaction on Thursday, January 29th. The shares were bought at an average cost of $22.60 per share, with a total value of $29,380.00. Following the completion of the acquisition, the director owned 1,300 shares in the company, valued at $29,380. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Michael Blitzer acquired 100,000 shares of the firm’s stock in a transaction dated Thursday, January 29th. The stock was bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the acquisition, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. William Blair started coverage on USA Rare Earth in a research report on Monday, October 20th. They set an “outperform” rating for the company. Benchmark started coverage on shares of USA Rare Earth in a research note on Wednesday, January 21st. They set a “buy” rating on the stock. Cantor Fitzgerald reiterated an “overweight” rating and issued a $35.00 target price (up from $28.00) on shares of USA Rare Earth in a research note on Friday. UBS Group reaffirmed a “buy” rating on shares of USA Rare Earth in a report on Monday, December 8th. Finally, Canaccord Genuity Group increased their target price on shares of USA Rare Earth from $23.00 to $33.00 and gave the stock a “buy” rating in a research note on Tuesday. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, USA Rare Earth currently has an average rating of “Moderate Buy” and a consensus price target of $34.33.

Key USA Rare Earth News

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

• Positive Sentiment: Director Michael Blitzer purchased 100,000 shares (~$2.14M at $21.44), raising his stake to ~847,500 shares — a strong insider-confidence signal that typically supports the stock. SEC Filing: Insider Purchase
• Positive Sentiment: USA Rare Earth closed a $1.5 billion PIPE financing, giving the company meaningful near-term capital to advance Round Top development, processing plans and downstream ambitions — a material de-risking event for a development-stage miner. GlobeNewswire: PIPE Closing
• Positive Sentiment: Federal engagement continues: a Commerce Dept. letter-of-intent and reported administration loan/funding support position USAR as a focal point of U.S. rare-earth and chip-supply initiatives — policy backing that underpins long-term demand assumptions. ExecutiveGov: Commerce, USA Rare Earth Collaborate
• Positive Sentiment: Smaller director buy: Director Carolyn Trabuco acquired 1,300 shares at $22.60 — another insider purchase that reinforces management confidence (though size is modest). SEC Filing: Trabuco Purchase
• Neutral Sentiment: Profile pieces (Yahoo/Bloomberg/NYT coverage) frame USAR as a “test case” for U.S.-backed mine-to-magnet supply chains and cite a reported $1.6B federal endorsement — these raise visibility and policy importance but leave commercialization and timelines uncertain. Yahoo Finance: Test Case Article
• Neutral Sentiment: Momentum narratives highlight strong YTD returns and analyst buy ratings/target increases; positive sentiment may already be priced in, increasing sensitivity to execution or policy news. MarketBeat: Coverage & Ratings
• Negative Sentiment: Barron’s reported that the U.S. may rethink rare-earth price-floor support, which sparked a sector selloff and is the clearest near-term negative catalyst weighing on USAR today — policy uncertainty can quickly pressure sentiment for development-stage names. Barron’s: Price-Floor Fears

USA Rare Earth Trading Up 7.2%

The stock has a market cap of $3.14 billion, a price-to-earnings ratio of -45.50 and a beta of 0.96. The firm’s 50-day moving average is $16.34 and its two-hundred day moving average is $17.33.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Alyeska Investment Group L.P. grew its position in shares of USA Rare Earth by 44.0% in 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 in the last quarter. Vanguard Group Inc. grew its holdings in USA Rare Earth by 533.3% in the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock valued at $71,834,000 after buying an additional 5,083,288 shares in the last quarter. UBS Group AG increased its stake in shares of USA Rare Earth by 10.2% in the 4th quarter. UBS Group AG now owns 1,279,378 shares of the company’s stock worth $15,225,000 after acquiring an additional 118,812 shares during the last quarter. Altfest L J & Co. Inc. increased its stake 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 worth $14,445,000 after acquiring an additional 425,377 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock worth $7,160,000 after acquiring an additional 627,545 shares during the period.

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.