Serve Robotics (NASDAQ:SERV) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Serve Robotics to “strong sell” from “hold,” although the broader analyst consensus remains “moderate buy” with an average price target of $14.77.
• Serve Robotics reported a larger-than-expected quarterly loss of $0.80 per share and revenue of $3.24 million, both below analyst expectations; analysts project a full-year loss of $2.81 per share.
• The stock opened at $3.44, near its 52-week low of $3.42, while its share price has fallen below both its 50-day and 200-day moving averages. Company insiders also sold shares to cover tax-withholding obligations.

Serve Robotics (NASDAQ:SERV - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

Other equities analysts also recently issued reports about the stock. Cantor Fitzgerald downgraded shares of Serve Robotics from an "overweight" rating to a "neutral" rating in a report on Friday, August 7th. Weiss Ratings raised Serve Robotics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. Freedom Capital raised Serve Robotics from a "hold" rating to a "strong-buy" rating in a report on Friday, August 14th. Guggenheim reduced their price target on Serve Robotics from $13.00 to $7.00 and set a "buy" rating for the company in a research note on Monday, August 10th. Finally, Oppenheimer decreased their price objective on Serve Robotics from $20.00 to $7.00 and set an "outperform" rating on the stock in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $14.77.

Serve Robotics Stock Performance

NASDAQ:SERV opened at $3.44 on Tuesday. The company has a market cap of $298.28 million, a P/E ratio of -1.40 and a beta of 1.43. Serve Robotics has a 52-week low of $3.42 and a 52-week high of $18.64. The stock's 50-day simple moving average is $4.65 and its 200 day simple moving average is $6.50.

Serve Robotics (NASDAQ:SERV - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.69) by ($0.11). The company had revenue of $3.24 million for the quarter, compared to the consensus estimate of $3.51 million. Serve Robotics had a negative return on equity of 55.34% and a negative net margin of 2,315.80%. As a group, equities analysts predict that Serve Robotics will post -2.81 earnings per share for the current fiscal year.

Insider Activity at Serve Robotics

In other Serve Robotics news, COO Touraj Parang sold 37,993 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $4.55, for a total transaction of $172,868.15. Following the completion of the transaction, the chief operating officer owned 1,260,251 shares of the company's stock, valued at approximately $5,734,142.05. The trade was a 2.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ali Kashani sold 45,158 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $4.56, for a total transaction of $205,920.48. Following the transaction, the chief executive officer owned 3,232,933 shares of the company's stock, valued at approximately $14,742,174.48. This represents a 1.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 124,220 shares of company stock valued at $585,554 over the last ninety days. 5.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. lifted its stake in Serve Robotics by 24.5% in the second quarter. BlackRock Inc. now owns 6,040,854 shares of the company's stock valued at $39,749,000 after buying an additional 1,190,622 shares during the period. State Street Corp grew its position in shares of Serve Robotics by 90.7% during the 2nd quarter. State Street Corp now owns 2,456,658 shares of the company's stock worth $16,165,000 after buying an additional 1,168,714 shares during the period. Legal & General Group Plc acquired a new stake in shares of Serve Robotics during the 2nd quarter worth approximately $8,410,000. Grange Capital LLC bought a new stake in shares of Serve Robotics in the 1st quarter valued at $2,426,000. Finally, Landscape Capital Management L.L.C. acquired a new position in shares of Serve Robotics during the 2nd quarter valued at $1,788,000.

Trending Headlines about Serve Robotics

Here are the key news stories impacting Serve Robotics this week:

• Positive Sentiment: Northland raised its FY2028 EPS forecast modestly to a loss of $2.66 from a loss of $2.72, suggesting some improvement in longer-term expectations.
• Neutral Sentiment: Northland projected continued losses across the forecast period, including EPS of negative $0.88 for Q3 2026, negative $0.89 for Q4 2026, negative $0.80 for Q1 2027, negative $0.81 for Q2 2027, negative $0.78 for Q3 2027 and negative $0.75 for Q4 2027.
• Negative Sentiment: FY2026 EPS estimates were cut to a loss of $3.22 from $2.82, while FY2027 estimates were reduced to a loss of $3.14 from $2.71. The deeper projected losses are the most significant factor weighing on investor sentiment.
• Negative Sentiment: Quarterly estimates were lowered across the near- and medium-term forecast: Q3 2026 to negative $0.88 from negative $0.72, Q4 2026 to negative $0.89 from negative $0.65, Q1 2027 to negative $0.80 from negative $0.66, Q2 2027 to negative $0.81 from negative $0.66, Q3 2027 to negative $0.78 from negative $0.69 and Q4 2027 to negative $0.75 from negative $0.70.
• Negative Sentiment: The revisions reinforce concerns that Serve Robotics remains far from profitability. The company previously reported a quarterly loss that exceeded analyst expectations, while revenue also came in below forecasts.

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous, sidewalk-based delivery robots designed to transport food, groceries and other goods over short distances. Its robots use cameras, sensors, mapping technology and artificial intelligence to navigate urban environments, interact with pedestrians and complete deliveries with limited human assistance.

The company's delivery platform is intended to support restaurants, merchants and delivery providers by offering an additional fulfillment option for local orders.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.