TLDR
- USAR stock rose 6.3% in pre-market trading to $18.51 ahead of Q2 earnings due August 10
- 8 analysts rate USAR a “Strong Buy” with an average 12-month price target of $37.50
- A special shareholder meeting on August 28 will vote on the merger with SVRE Holdings Ltd.
- The SVRE deal values the transaction at $300 million in cash plus 126 million+ common stock, with SVRE securityholders owning 34.1% of the combined entity
- Last quarter, USAR beat EPS estimates, reporting a $0.12 loss vs. the expected $0.16 loss on $5.7 million in revenue
USA Rare Earth (USAR) stock climbed 6.3% in pre-market trading on August 7, hitting $18.51, as investors positioned ahead of the company’s Q2 earnings report due after the close on August 10.
The stock had already moved 1.5% higher in the prior session, trading as high as $18.01 before settling at $17.41. Volume came in at around 10.3 million, down 39% from the average daily volume of 16.8 million.
Despite the recent move, USAR still trades below both its 50-day moving average of $20.10 and its 200-day moving average of $20.52. The stock also remains well below its 52-week high of $43.98.
The company confirmed on August 6 that it will release financial results for the quarter ended June 30, 2026, after U.S. markets close on Monday, August 10.
Analysts are watching closely. Eight analysts currently rate USAR a “Strong Buy” with an average 12-month price target of $37.50, according to available data. A separate consensus from nine analysts puts the average target at $35.83, with a “Moderate Buy” rating.
Recent target changes tell a mixed story. Roth Capital cut its target from $40 to $30 but kept a “Buy” rating. Needham dropped its target from $39 to $33, also maintaining “Buy.” Wedbush raised its target from $29 to $35 with an “Outperform” rating. Northland Securities started coverage with an “Outperform” and a $45 target.
Q2 Earnings in Focus
Last quarter, USAR reported a loss of $0.12 per share, beating the consensus estimate of a $0.16 loss by $0.04. Revenue came in at $5.7 million. Analysts currently expect a full-year EPS of -$0.35.
The earnings beat last time around is part of why traders are paying attention. A repeat performance could give the stock a push, though the company is still in a development stage and running at a loss.
SVRE Merger Vote on the Horizon
Beyond earnings, investors are also watching the August 28 special shareholder meeting, where a vote will be held on USAR’s proposed merger with SVRE Holdings Ltd.
Under the terms of the deal, SVRE securityholders would own 34.1% of the combined company. The consideration includes $300 million in cash and more than 126 million common stock. The goal is to build a fully integrated rare earth and permanent magnet supply chain.
On the institutional side, Vanguard increased its stake by 533.3% in Q4, and State Street boosted its position by 78.4%. Bayshore Capital Advisors also entered a new position worth $102.4 million.
One insider moved the other way. Director Carolyn Trabuco sold 13,000 shares on June 8 at an average price of $22.77, reducing her ownership stake by 40.9%.
USAR has a market cap of $3.88 billion and a beta of 2.55.
