USA Rare Earth (USAR) stock rallied on Friday after the magnet manufacturing company’s CEO confirmed talks with the Trump administration. During an interview with CNBC, USA Rare Earth CEO Barbara Humpton was asked if the company was interested in a deal with the Trump administration. Humpton responded that the company is “in close communication” with the White House.
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News of USA Rare Earth being in communication with the Trump administration has investors excited, and that’s to be expected. The White House has shown interest in rare earth companies recently, having taken stakes in Lithium Americas (LAC) and MP Materials (MP) this year. This has USA Rare Earth shareholders hoping for a potential investment from the U.S. government.
Part of President Donald Trump’s mission while in the White House is to reduce the U.S.’s reliance on China. This has resulted in the Trump administration investing in companies to increase American manufacturing. Additionally, this is the crux of the trade war taking place right now, as well as the increased tariffs on China and multiple other countries.
USA Rare Earth Stock Movement Today
USA Rare Earth stock was up 15.5% on Friday, following a 23.36% rally yesterday. The shares have also climbed 97.82% year-to-date and 110.67% over the past 12 months. With today’s news comes strong pre-market trading for USAR stock, as some 3.1 million shares changed hands, compared to a three-month daily average of 5.74 million units.
Is USA Rare Earth Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for USA Rare Earth is Strong Buy, based on four Buy ratings over the past three months. With that comes an average USAR stock price target of $19.25, representing a potential 15.24% downside for the shares.
