MW Why this rare-earth stock is surging while others keep falling

By Tomi Kilgore

USA Rare Earth's chairman spent more than $2 million of his own money to buy shares on the dip

USA Rare Earth's stock bounces back, after Chairman Michael Blitzer spent his own money to buy 100,000 shares, and CEO Barbara Humpton (pictured) said the company does not need price guarantees for projects.

Shares of USA Rare Earth surged Friday, bucking the weakness seen in those of its rivals, as a large purchase by a key insider helped quell investor worries that rare-earth pricing was at risk.

CEO Barbara Humpton said the company didn't need pricing guarantees, which also provided a boost.

The company (USAR) disclosed late Thursday in a Form 4 filing with the Securities and Exchange Commission that Chairman Michael Blitzer bought 100,000 USA Rare Earth shares on Thursday for $2.14 million.

The purchase was made on a day that the stock had tumbled 12.4%, after Reuters had reported, citing multiple sources, that the Trump administration was no longer planning to guarantee minimum prices for mineral projects. With that drop, the stock had slid 17.4% amid a three-day losing streak.

That selloff followed a six-session surge of 59.1%, as the company announced an agreement for access to $1.6 billion in government funding to expand operations and said it would issue 16.1 million shares to the U.S. Commerce Department, representing a more than 10% stake in the company.

On Friday, the stock bounced 5.3% in midday trading, as the disclosure of Blitzer's purchase stood out in more ways than one. That might be supporting the stock as others are selling off.

Shares of MP Materials (MP) declined 4.9% on Friday, after falling 7.2% on Thursday. Ramaco Resources shares $(METC)$ shed 3.5%, to add to the prior day's 11.6% slide, and Trilogy Metals' stock $(TMQ)$ dropped 11.7% after shedding 12.7% the day before.

It's not unusual to see company insiders acquire and sell shares because they may regularly exercise options to buy and cash in stock received in their pay packages as part of predetermined trading plans.

But Blitzer's purchase was different, as it was coded on the filing as "P," which the SEC describes as an "open market or private purchase." Basically, he must have liked the lower price because he decided to spend his own cash to buy the stock.

What also made the filing unusual was how quickly the Form 4 was submitted. Companies are required to disclose insider-trading activity within two business days. Form 4s are typically filed a day or two after the trades are actually made - and not the day of.

The company declined to comment on the Form 4 filing.

Chief Executive Humpton helped support the apparent message sent by Blitzer, saying on Fox Business's "Mornings with Maria" that a minimum price or a price guarantee on rare-earth projects wasn't necessary.

"But we did not request, nor do we need, price floors or offtake agreements," Humpton said. "In fact, the economics, the pieces of the supply chain that we're pulling together command high prices."

-Tomi Kilgore

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January 30, 2026 12:55 ET (17:55 GMT)

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