Stock Traders Purchase Large Volume of USA Rare Earth Call Options (NASDAQ:USAR)

USA Rare Earth Inc. (NASDAQ:USAR) saw unusually large options trading activity on Tuesday. Investors acquired 60,375 call options on the stock. This is an increase of approximately 40% compared to the average daily volume of 43,077 call options.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: French government backing — Reports say France will support USAR’s planned plant with roughly $152 million in aid, signaling strong public-sector support for the project and lowering funding execution risk. France backs USA Rare Earth plant build with $152M
• Positive Sentiment: Project specifics and financing — Company release details a 3,750 mtpa metal/alloy plant in Lacq, France (via LCM Europe) and notes direct tax credits from the French government to help finance the build, improving project economics and timeline clarity. USA Rare Earth Strengthens Value Chain with Support of the French Government
• Positive Sentiment: Broad media pickup celebrating European expansion — Multiple outlets highlight the strategic expansion into Europe and the subsidy support, increasing visibility among investors and traders. Example coverage: USA Rare Earth Is Surging Today — Is the Stock a Buy for 2026? and USA Rare Earth Stock Jumps On Expansion: Rare Earths, Real Gains
• Positive Sentiment: Unusual options activity — Traders bought an unusually large number of call options (about 60,375 contracts, ~40% above typical call volume), a bullish short-term indicator that can amplify upward momentum in the stock.
• Neutral Sentiment: Sector/geopolitical flow — Rising U.S.–Europe tensions over Greenland and broader rare-earth supply concerns are driving investor interest in domestic/ally supply plays, benefiting USAR as a strategic name. 2 Rare Earth Stocks Hot Amid Greenland Gridlock
• Neutral Sentiment: Comparative outlook — Analyst commentary compares USAR favorably to peers (e.g., NioCorp) on progress at Stillwater and funding support, which is constructive but not a direct catalyst. USA Rare Earth vs. NioCorp: Which Mining Stock Offers Better Prospects?
• Negative Sentiment: Valuation caution — Recent analyses flag a stretched valuation after the share rebound and note DCF discounts and other valuation risks; investors should weigh execution progress against potential overvaluation. Assessing USA Rare Earth (USAR) Valuation After Recent Share Price Rebound And DCF Discount

Institutional Trading of USA Rare Earth

A number of hedge funds and other institutional investors have recently bought and sold shares of USAR. National Bank of Canada FI increased its holdings in shares of USA Rare Earth by 110.0% in the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock valued at $36,000 after acquiring an additional 1,100 shares during the last quarter. NewEdge Advisors LLC raised its holdings in USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after purchasing an additional 1,424 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in shares of USA Rare Earth by 10,448.0% during the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock worth $29,000 after buying an additional 2,612 shares during the last quarter. Osaic Holdings Inc. purchased a new stake in shares of USA Rare Earth during the 2nd quarter worth approximately $38,000. Finally, KLP Kapitalforvaltning AS purchased a new position in shares of USA Rare Earth in the 3rd quarter valued at $69,000.

Analyst Upgrades and Downgrades

A number of research analysts have commented on USAR shares. William Blair began coverage on USA Rare Earth in a research note on Monday, October 20th. They set an “outperform” rating on the stock. Canaccord Genuity Group boosted their price objective on USA Rare Earth from $22.00 to $23.00 and gave the company a “buy” rating in a report on Friday, November 7th. Benchmark reissued a “buy” rating on shares of USA Rare Earth in a research note on Wednesday. UBS Group reaffirmed a “buy” rating on shares of USA Rare Earth in a research report on Monday, December 8th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a research note on Monday, December 29th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $26.33.

USA Rare Earth Stock Up 0.7%

Shares of NASDAQ:USAR opened at $19.33 on Thursday. USA Rare Earth has a fifty-two week low of $5.56 and a fifty-two week high of $43.98. The firm’s 50 day moving average price is $15.10 and its 200 day moving average price is $16.77. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of -37.17 and a beta of 0.96.

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

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.