Key Highlights USA Rare Earth finalized its acquisition of Texas Mineral Resources on Thursday, closing a transaction initially announced March 4, 2026 Shares of USAR rose 7.5% to $20.00, bri
Shares of USA Rare Earth (USAR) advanced 7.5% to $20.00 during Friday’s trading session, reaching an intraday peak of $20.50. The rally followed the company’s announcement that it successfully closed its acquisition of Texas Mineral Resources Corp.
The transaction, first unveiled on March 4, 2026, unfolded through a dual-step merger process. Initially, a fully controlled subsidiary of USA Rare Earth combined with Texas Mineral Resources. Subsequently, another subsidiary merged with the resulting company.
Shareholders of Texas Mineral Resources obtained 0.043279843 shares of USAR for every share in their possession. The conversion ratio was calculated using 88,339,693 fully diluted Texas Mineral Resources shares outstanding at closing. Any fractional shares were settled in cash.
The distribution of USAR shares to previous Texas Mineral Resources stakeholders received registration approval under the Securities Act of 1933. The company’s Form S-4 registration statement gained effectiveness on June 29, 2026.
Friday’s upward momentum extended beyond the merger announcement. The broader rare earth sector experienced positive movement, with MP Materials advancing 8% and NioCorp posting approximately 3% gains. Growing investor focus on domestic critical mineral infrastructure fueled the sector-wide rally.
USAR continues to receive favorable coverage from Wall Street analysts. Nine of the ten analysts tracking the company maintain Buy recommendations. The average price target stands at $35.83, representing significant upside from the current $20.00 level.
Northland Securities maintained its Outperform designation alongside a $45 price objective. The firm projects USAR achieving approximately neutral earnings by fiscal year 2028. Benchmark Co. sustained its Buy recommendation. Cantor Fitzgerald confirmed its Overweight stance with a $40 target price.
Some analysts have expressed caution. Roth Capital reduced its price objective from $40 to $30, while maintaining a Buy rating. Weiss Ratings issued a downgrade to “sell (d-).” Canaccord Genuity increased its target from $29 to $32.
USAR disclosed its Q2 2026 financial results on August 10. Revenue totaled $5.82 million, significantly trailing the $8 million Wall Street projection.
The company posted an EPS loss of $0.15, missing the $0.07 consensus estimate. Wall Street anticipates a full-year EPS loss of $0.47. The company continues to operate at a loss.
Regarding insider transactions, Director Carolyn Trabuco divested 13,000 shares on June 8 at $22.77 per share, decreasing her holdings by 40.9%.
Multiple institutional investors have been building positions. Weiss Asset Management established a fresh stake valued at approximately $17.1 million during Q1. Encompass Capital Advisors initiated a position worth roughly $7 million. Swiss National Bank increased its holdings by 67.6% in the same quarter.
USAR has gained 56% since the beginning of the year. The stock’s 50-day moving average registers at $18.91, while the 200-day moving average sits at $20.45. The company maintains a beta of 2.55.
The post USA Rare Earth (USAR) Stock Surges 7.5% Following Texas Mineral Resources Merger Completion appeared first on Blockonomi.
