USA Rare Earth chief operating officer retires, enters transition agreement

Published 09/07/2025, 21:50
USA Rare Earth chief operating officer retires, enters transition agreement

USA Rare Earth, Inc. (NASDAQ:USAR), currently valued at $932 million and trading at a high earnings multiple of 96x, announced that chief operating officer Steve Ridge retired from the company, effective immediately as of Friday. The company disclosed the change in a statement released through a filing with the Securities and Exchange Commission.

According to the filing, Ridge and USA Rare Earth entered into a separation agreement dated Saturday. Under the terms of the agreement, Ridge will serve as a part-time consultant for three months to assist in the transition of his duties. The announcement comes as the stock has declined 6.5% over the past week, though analysts maintain a strong buy rating with price targets ranging from $15 to $20.

The agreement provides that, upon a general release of claims, Ridge will receive a lump sum cash payment of $5,000 and a grant of restricted stock units (RSUs) valued at $450,000. The RSUs will vest in full on January 1, 2026.

USA Rare Earth’s common stock and warrants trade on the Nasdaq Stock Market under the symbols USAR and USARW, respectively.

The company filed the separation agreement as an exhibit to its Form 8-K submitted to the SEC.

In other recent news, USA Rare Earth, Inc. announced that shareholders approved the issuance of up to 10.7 million shares of common stock related to a warrant issued to an institutional investor. This approval was part of a private placement transaction that closed earlier in May 2025. Additionally, USA Rare Earth has entered into a settlement agreement to resolve litigation with Ramco Asset Management, which involves issuing 159,000 shares of common stock and a payment of $150,000. In a strategic move, the company has signed a memorandum of understanding with Moog Electric Motion Solutions to supply neodymium magnets for data center cooling pumps, with production expected to begin in early 2026.

Furthermore, USA Rare Earth received a Buy rating from Canaccord Genuity, which set a $17.00 price target, citing the company’s growth potential beyond 2035. Roth/MKM also initiated coverage with a Buy rating and a $15.00 price target, highlighting the company’s efforts to develop a comprehensive, vertically integrated supply chain for rare earth elements within the United States. In leadership news, USA Rare Earth appointed David Bushi as Senior Vice President of Manufacturing, leveraging his extensive experience to oversee operations at the company’s Stillwater facility. These developments reflect USA Rare Earth’s ongoing efforts to strengthen its position in the rare earth materials sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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