USA Rare Earth (NASDAQ:USAR) Shares Up 8.5% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price shot up 8.5% during trading on Tuesday . The stock traded as high as $20.27 and last traded at $19.20. 22,640,737 shares were traded during mid-day trading, an increase of 72% from the average session volume of 13,151,625 shares. The stock had previously closed at $17.69.

More USA Rare Earth News

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

Analysts Set New Price Targets

Several equities analysts have recently commented on USAR shares. Weiss Ratings restated a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. UBS Group restated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Benchmark reiterated a “buy” rating on shares of USA Rare Earth in a report on Monday, December 8th. William Blair assumed coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They set an “outperform” rating on the stock. Finally, Roth Capital set a $40.00 target price on shares of USA Rare Earth in a research report on Friday, October 10th. Six analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, USA Rare Earth currently has a consensus rating of “Moderate Buy” and an average target price of $26.33.

USA Rare Earth Trading Up 8.5%

The stock has a fifty day simple moving average of $15.02 and a 200-day simple moving average of $16.69. The stock has a market cap of $2.55 billion, a price-to-earnings ratio of -36.92 and a beta of 0.96.

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Alyeska Investment Group L.P. grew 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 worth $219,034,000 after buying an additional 3,909,455 shares in the last quarter. Altfest L J & Co. Inc. acquired a new stake in shares of USA Rare Earth during the 3rd quarter worth approximately $13,554,000. Geode Capital Management LLC grew 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 purchasing an additional 627,545 shares in the last quarter. Tudor Investment Corp ET AL bought a new stake in shares of USA Rare Earth during the third quarter valued at approximately $8,304,000. Finally, Millennium Management LLC acquired a new position in shares of USA Rare Earth in the third quarter valued at $7,966,000.

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.