TLDR
- USA Rare Earth completed its merger with Texas Mineral Resources on Thursday, finalizing a deal first signed March 4, 2026
- USAR stock jumped 7.5% to $20.00, with the stock up 56% year-to-date and a market cap of $4.55 billion
- Texas Mineral Resources shareholders received 0.043279843 of a USAR share for each share held
- Nine analysts rate USAR a Buy with a consensus price target of $35.83; Northland Securities has a $45 target
- Q2 2026 revenue came in at $5.82 million, missing the $8 million Wall Street estimate; EPS loss of $0.15 beat the expected $0.07 loss
USA Rare Earth (USAR) stock climbed 7.5% to $20.00 on Friday, touching an intraday high of $20.50. The move came as the company confirmed completion of its merger with Texas Mineral Resources Corp.
The deal, originally signed on March 4, 2026, was structured as a two-step merger. First, a wholly owned subsidiary of USA Rare Earth merged with Texas Mineral Resources. Then a second subsidiary merged with the surviving entity.
Texas Mineral Resources stockholders received 0.043279843 of a USAR share for each share they held. The exchange was based on 88,339,693 Texas Mineral Resources shares outstanding on a fully diluted basis at the time of closing. Fractional shares were paid out in cash.
The issuance of USAR stock to former Texas Mineral Resources holders was registered under the Securities Act of 1933. The Form S-4 registration statement was declared effective on June 29, 2026.
Friday’s gain was not just about the merger. Rare earth stocks moved broadly higher, with MP Materials up 8% and NioCorp gaining around 3%. Renewed investor interest in domestic critical mineral supply chains drove the sector-wide move.
Analyst Sentiment
Analyst support for USAR remains broadly positive. Nine out of ten analysts covering the stock have it rated Buy. The consensus price target sits at $35.83, against a current price of $20.00.
Northland Securities reiterated an Outperform rating with a $45 price target. The firm sees USAR moving toward roughly breakeven earnings by fiscal 2028. Benchmark Co. also kept its Buy rating. Cantor Fitzgerald reaffirmed an Overweight rating with a $40 price target.
Not everyone is on board. Roth Capital cut its price target from $40 to $30, though kept a Buy rating. Weiss Ratings downgraded the stock to a “sell (d-).” Canaccord Genuity raised its target from $29 to $32.
Q2 Earnings Miss
USAR reported Q2 2026 results on August 10. Revenue came in at $5.82 million, well below the $8 million Wall Street expected.
The EPS loss was $0.15, worse than the $0.07 consensus estimate. Analysts forecast a full-year EPS loss of $0.47. The company remains unprofitable.
On the insider side, Director Carolyn Trabuco sold 13,000 shares on June 8 at $22.77 each, reducing her position by 40.9%.
Several hedge funds have been adding exposure. Weiss Asset Management took a new stake worth around $17.1 million in Q1. Encompass Capital Advisors added a position worth approximately $7 million. Swiss National Bank lifted its stake by 67.6% during the same period.
USAR is up 56% year-to-date. The 50-day moving average stands at $18.91 and the 200-day at $20.45. The stock carries a beta of 2.55.
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