USA Rare Earth Inc Shares Rise 12.57%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy USAR?
Moderately bullish activity in - USA Rare Earth Inc (USAR), with shares up $2.51, or 12.57%, near $22.48. Options volume relatively light with 46k contracts traded and calls leading puts for a put/call ratio of 0.39, compared to a typical level near 0.46. Implied volatility (IV30) is higher by 1.4 points near 100.01,in the bottom quartile of the past year, suggesting an expected daily move of $1.42. Put-call skew steepened, indicating increased demand for downside protection.
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Analyst Views on USAR
Wall Street analysts forecast USAR stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.965
Low
15.00
Averages
22.75
High
28.00
Current: 19.965
Low
15.00
Averages
22.75
High
28.00
About USAR
USA Rare Earth, Inc. is a supplier of sintered neo magnets and other rare earth metals. The Company is engaged in developing a NdFeB magnet manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. It is focused on developing domestic rare earth production that offers sustainable and secure domestic supply of materials critical to key industries. Its vertically integrated approach consists of sourcing rare earth elements (REEs), in addition to other critical minerals such as gallium, to producing finished NdFeB magnets. The Company serve a variety of industries, such as defense, robotics, electric vehicles, wind power, appliances, cordless tools and computing and semiconductors. The Company owns, Less Common Metals Ltd., which is a scaled ex-China rare earth metal and alloy manufacturer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
USA Rare Earth Stock Surges Amid China Export Speculation
- Stock Surge: USA Rare Earth's stock jumped 11% to $2.33 by 11:55 a.m. ET on Wednesday, driven by investor speculation regarding China's potential easing of rare-earth magnet export restrictions, which poses a profit threat to the company.
- Export Growth: In April, Chinese rare-earth exports to the U.S. increased by 26.4%, raising market interest ahead of President Trump's summit with Xi Jinping, which benefits rare-earth importers but adds competitive pressure on USA Rare Earth.
- Intensified Market Competition: Although China may not ease export restrictions immediately, its ability to change policies at any moment creates ongoing market uncertainty for USA Rare Earth, especially as Japan faces severe shortages of rare-earth magnets due to reduced exports.
- Improving Profit Outlook: Analysts from S&P Global Market Intelligence suggest that USA Rare Earth may achieve its first profit by 2028, and as calls for U.S. rare-earth independence grow, investor support for the company is also increasing.
See More
Chinese Rare Earth Magnet Exports Surge Amid Challenges
- Export Growth: In April, Chinese rare earth magnet exports to the U.S. surged by 26.4%, which is particularly significant ahead of the Trump-Xi summit, indicating a shift in trade dynamics that could impact future supply chain stability.
- Market Reaction: USA Rare Earth (NASDAQ: USAR) stock jumped 11% by Wednesday morning as investors speculated on whether China would ease restrictions on rare earth magnet exports, highlighting the market's keen interest in the rare earth supply chain.
- Shortage in Japan: Japan is currently experiencing severe shortages of rare earth magnets due to export restrictions imposed in March, and although there was a modest recovery in April, it still fails to meet market demand, presenting a potential opportunity for USA Rare Earth.
- Profit Outlook: Analysts from S&P Global Market Intelligence suggest that USA Rare Earth may achieve its first profit by 2028, and despite competition from low-cost Chinese magnets, its strategy for
See More
U.S.-China Rare Earth Supply Chain Talks Show Progress
- Rare Earth Supply Agreement: The U.S. and China have reached an agreement covering mining and processing technologies for key minerals like indium and neodymium, aimed at reducing reliance on China, which controls about 90% of rare earth production, thereby enhancing U.S. supply chain security in defense and semiconductor sectors.
- Market Reaction: Following the White House's announcement, stocks of rare earth companies such as MP Materials, USA Rare Earth, Energy Fuels, and United States Antimony gained attention; while MP and USA Rare Earth saw declines, Energy Fuels rose by 0.9%, reflecting market optimism regarding improvements in the rare earth supply chain.
- Technology and Export Restrictions: The agreement also includes restrictions on the export of equipment and technologies for rare earth extraction and processing, addressing U.S. concerns over shortages of critical rare earth elements, which could alleviate long-standing supply chain bottlenecks reliant on a single geographic source and promote domestic production capabilities.
- Government Investment Support: The U.S. government has invested in several rare earth companies, including MP Materials and Energy Fuels, to bolster domestic production and strengthen the supply chain for critical materials, ensuring competitiveness in sectors like electric vehicles and renewable energy.
See More
USA Rare Earth Shares Drop 9.6% Post Earnings Report
- Stock Price Decline: USA Rare Earth shares fell by 9.6% this week, likely due to a 'sell on the news' mentality following the release of its first-quarter earnings report, indicating investor concerns about the company's future profitability.
- Bleak Earnings Outlook: According to S&P Global Market Intelligence, Wall Street analysts do not expect USA Rare Earth to generate earnings before 2028 or cash flow before 2029, which has exacerbated investor disappointment.
- Strategic Progress and Risks: Although the stock surged by 72% in April due to progress in derisking its mine-to-magnet strategy, the company's backward approach necessitates securing non-China sourced raw materials before the Round Top mine begins operations in 2028.
- Future Plans and Goals: Looking ahead, the company aims to ramp up metal and magnet manufacturing capacity in 2026 and complete the feasibility study for Round Top in 2026, with publication expected in early 2027, to further mitigate management's risks in addressing U.S. rare-earth supply needs.
See More
USA Rare Earth Q1 2026 Earnings Call Insights Highlighting Strategic Transactions
- Strategic Transaction Announcement: USA Rare Earth announced the acquisition of 100% of the Serra Verde Group, securing the unique operating asset of the Pela Ema mine in Brazil, marking a watershed moment for the Western rare earth industry and expected to enhance the company's competitiveness in the global market.
- Government Financing Support: The $1.6 billion letter of intent with the Department of Commerce is nearing completion, which is anticipated to provide stable funding support for the company's expansion and operational capacity enhancement in the rare earth sector.
- Production Capacity Increase: The Stillwater plant's magnet production capacity is expected to reach 600 metric tons per annum by year-end, while LCM's metal-making capacity is projected to hit 3,000 metric tons per annum by Q4, addressing the growing market demand.
- Financial Overview: The first quarter reported revenues of approximately $6 million and operating expenses of about $37 million, resulting in a net loss of $67 million; despite these challenges, the company maintains a strong cash flow with approximately $1.75 billion in cash at quarter-end.
See More
USA Rare Earth Reports Strong Q1 Results with Positive Outlook
- Strong Earnings Report: USA Rare Earth's Q1 non-GAAP EPS of -$0.12 exceeded expectations by $0.11, with revenues of $5.7M surpassing forecasts by $2.07M, indicating robust market performance and growth potential.
- Funding Agreement Outlook: The anticipated Definitive Funding Agreement with the U.S. Government in May 2026 could provide access to $1.6 billion, accelerating growth objectives and mitigating risks, positioning the company as a leading platform for heavy rare earths and critical minerals in the U.S.
- Facility Development Plans: The company plans to commission a hydrometallurgical demonstration facility in Colorado by Q2 2026, conducting three continuous demonstrations expected to be completed by the end of 2026, which will supply qualified oxide products to potential customers and advance commercial engineering efforts.
- Capacity Expansion Goals: By Q4 2026, the Stillwater facility aims to achieve a run-rate magnet manufacturing capacity of 600 MTPA, while LCM targets 3,000 MTPA for metal and alloy production, addressing increasing market demand and enhancing competitive positioning.
See More
USA Rare Earth Stock Surges Amid China Export Speculation
- Stock Surge: USA Rare Earth's stock jumped 11% to $2.33 by 11:55 a.m. ET on Wednesday, driven by investor speculation regarding China's potential easing of rare-earth magnet export restrictions, which poses a profit threat to the company.
- Export Growth: In April, Chinese rare-earth exports to the U.S. increased by 26.4%, raising market interest ahead of President Trump's summit with Xi Jinping, which benefits rare-earth importers but adds competitive pressure on USA Rare Earth.
- Intensified Market Competition: Although China may not ease export restrictions immediately, its ability to change policies at any moment creates ongoing market uncertainty for USA Rare Earth, especially as Japan faces severe shortages of rare-earth magnets due to reduced exports.
- Improving Profit Outlook: Analysts from S&P Global Market Intelligence suggest that USA Rare Earth may achieve its first profit by 2028, and as calls for U.S. rare-earth independence grow, investor support for the company is also increasing.
See More
Chinese Rare Earth Magnet Exports Surge Amid Challenges
- Export Growth: In April, Chinese rare earth magnet exports to the U.S. surged by 26.4%, which is particularly significant ahead of the Trump-Xi summit, indicating a shift in trade dynamics that could impact future supply chain stability.
- Market Reaction: USA Rare Earth (NASDAQ: USAR) stock jumped 11% by Wednesday morning as investors speculated on whether China would ease restrictions on rare earth magnet exports, highlighting the market's keen interest in the rare earth supply chain.
- Shortage in Japan: Japan is currently experiencing severe shortages of rare earth magnets due to export restrictions imposed in March, and although there was a modest recovery in April, it still fails to meet market demand, presenting a potential opportunity for USA Rare Earth.
- Profit Outlook: Analysts from S&P Global Market Intelligence suggest that USA Rare Earth may achieve its first profit by 2028, and despite competition from low-cost Chinese magnets, its strategy for
See More
U.S.-China Rare Earth Supply Chain Talks Show Progress
- Rare Earth Supply Agreement: The U.S. and China have reached an agreement covering mining and processing technologies for key minerals like indium and neodymium, aimed at reducing reliance on China, which controls about 90% of rare earth production, thereby enhancing U.S. supply chain security in defense and semiconductor sectors.
- Market Reaction: Following the White House's announcement, stocks of rare earth companies such as MP Materials, USA Rare Earth, Energy Fuels, and United States Antimony gained attention; while MP and USA Rare Earth saw declines, Energy Fuels rose by 0.9%, reflecting market optimism regarding improvements in the rare earth supply chain.
- Technology and Export Restrictions: The agreement also includes restrictions on the export of equipment and technologies for rare earth extraction and processing, addressing U.S. concerns over shortages of critical rare earth elements, which could alleviate long-standing supply chain bottlenecks reliant on a single geographic source and promote domestic production capabilities.
- Government Investment Support: The U.S. government has invested in several rare earth companies, including MP Materials and Energy Fuels, to bolster domestic production and strengthen the supply chain for critical materials, ensuring competitiveness in sectors like electric vehicles and renewable energy.
See More
USA Rare Earth Shares Drop 9.6% Post Earnings Report
- Stock Price Decline: USA Rare Earth shares fell by 9.6% this week, likely due to a 'sell on the news' mentality following the release of its first-quarter earnings report, indicating investor concerns about the company's future profitability.
- Bleak Earnings Outlook: According to S&P Global Market Intelligence, Wall Street analysts do not expect USA Rare Earth to generate earnings before 2028 or cash flow before 2029, which has exacerbated investor disappointment.
- Strategic Progress and Risks: Although the stock surged by 72% in April due to progress in derisking its mine-to-magnet strategy, the company's backward approach necessitates securing non-China sourced raw materials before the Round Top mine begins operations in 2028.
- Future Plans and Goals: Looking ahead, the company aims to ramp up metal and magnet manufacturing capacity in 2026 and complete the feasibility study for Round Top in 2026, with publication expected in early 2027, to further mitigate management's risks in addressing U.S. rare-earth supply needs.
See More
USA Rare Earth Q1 2026 Earnings Call Insights Highlighting Strategic Transactions
- Strategic Transaction Announcement: USA Rare Earth announced the acquisition of 100% of the Serra Verde Group, securing the unique operating asset of the Pela Ema mine in Brazil, marking a watershed moment for the Western rare earth industry and expected to enhance the company's competitiveness in the global market.
- Government Financing Support: The $1.6 billion letter of intent with the Department of Commerce is nearing completion, which is anticipated to provide stable funding support for the company's expansion and operational capacity enhancement in the rare earth sector.
- Production Capacity Increase: The Stillwater plant's magnet production capacity is expected to reach 600 metric tons per annum by year-end, while LCM's metal-making capacity is projected to hit 3,000 metric tons per annum by Q4, addressing the growing market demand.
- Financial Overview: The first quarter reported revenues of approximately $6 million and operating expenses of about $37 million, resulting in a net loss of $67 million; despite these challenges, the company maintains a strong cash flow with approximately $1.75 billion in cash at quarter-end.
See More
USA Rare Earth Reports Strong Q1 Results with Positive Outlook
- Strong Earnings Report: USA Rare Earth's Q1 non-GAAP EPS of -$0.12 exceeded expectations by $0.11, with revenues of $5.7M surpassing forecasts by $2.07M, indicating robust market performance and growth potential.
- Funding Agreement Outlook: The anticipated Definitive Funding Agreement with the U.S. Government in May 2026 could provide access to $1.6 billion, accelerating growth objectives and mitigating risks, positioning the company as a leading platform for heavy rare earths and critical minerals in the U.S.
- Facility Development Plans: The company plans to commission a hydrometallurgical demonstration facility in Colorado by Q2 2026, conducting three continuous demonstrations expected to be completed by the end of 2026, which will supply qualified oxide products to potential customers and advance commercial engineering efforts.
- Capacity Expansion Goals: By Q4 2026, the Stillwater facility aims to achieve a run-rate magnet manufacturing capacity of 600 MTPA, while LCM targets 3,000 MTPA for metal and alloy production, addressing increasing market demand and enhancing competitive positioning.
See More
