Investors Buy High Volume of Serve Robotics Call Options (NASDAQ:SERV)

Key Points

• Call-option activity surged: Traders bought 24,783 Serve Robotics call options, 145% above the average daily volume of 10,099.
• SERV rose $0.28 to $3.50 in Monday trading. The company reported a quarterly loss of $0.68 per share, slightly better than estimates, and revenue of $2.83 million versus forecasts of $1.63 million.
• Analyst sentiment is mixed but averages to a Moderate Buy, with a $13.37 average price target. Recent insider share sales were reported as covering tax withholding on vested equity awards.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) was the recipient of some unusual options trading activity on Monday. Traders acquired 24,783 call options on the company. This is an increase of 145% compared to the average daily volume of 10,099 call options.

Serve Robotics Stock Performance

SERV stock traded up $0.28 during mid-day trading on Monday, reaching $3.50. 5,409,259 shares of the stock traded hands, compared to its average volume of 4,480,442. Serve Robotics has a one year low of $2.26 and a one year high of $16.08. The stock has a market capitalization of $303.92 million, a PE ratio of -1.36 and a beta of 1.92. The business has a 50-day moving average price of $3.96 and a two-hundred day moving average price of $7.02.

Serve Robotics (NASDAQ:SERV - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported ($0.68) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.70) by $0.02. The firm had revenue of $2.83 million during the quarter, compared to analyst estimates of $1.63 million. Serve Robotics had a negative net margin of 2,079.02% and a negative return on equity of 62.35%. On average, equities analysts expect that Serve Robotics will post -2.87 earnings per share for the current fiscal year.

Insider Activity at Serve Robotics

In related news, CEO Ali Kashani sold 45,158 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $4.56, for a total transaction of $205,920.48. Following the sale, the chief executive officer owned 3,232,933 shares of the company's stock, valued at $14,742,174.48. This represents a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brian Read sold 25,240 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.24, for a total transaction of $132,257.60. Following the transaction, the chief financial officer owned 291,831 shares of the company's stock, valued at $1,529,194.44. This trade represents a 7.96% decrease in their position. 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. Over the last ninety days, insiders sold 124,220 shares of company stock valued at $585,554. 5.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its holdings in shares of Serve Robotics by 65.2% in the first quarter. EverSource Wealth Advisors LLC now owns 5,274 shares of the company's stock valued at $45,000 after purchasing an additional 2,082 shares during the period. NFSG Corp grew its stake in Serve Robotics by 27.6% in the first quarter. NFSG Corp now owns 11,570 shares of the company's stock worth $98,000 after purchasing an additional 2,500 shares in the last quarter. Sanctuary Advisors LLC increased its holdings in Serve Robotics by 17.3% during the 1st quarter. Sanctuary Advisors LLC now owns 19,185 shares of the company's stock worth $162,000 after purchasing an additional 2,824 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in Serve Robotics by 75.2% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 6,861 shares of the company's stock worth $45,000 after purchasing an additional 2,944 shares during the period. Finally, Wealthfront Advisers LLC increased its holdings in Serve Robotics by 28.7% during the 1st quarter. Wealthfront Advisers LLC now owns 14,791 shares of the company's stock worth $125,000 after purchasing an additional 3,302 shares during the period.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on SERV shares. Yorkville Ives assumed coverage on shares of Serve Robotics in a research report on Monday, October 5th. They set an "outperform" rating and a $8.00 target price on the stock. Cantor Fitzgerald lowered Serve Robotics from an "overweight" rating to a "neutral" rating in a research report on Friday, August 7th. LADENBURG THALM/SH SH reduced their price objective on Serve Robotics from $15.00 to $13.60 and set a "buy" rating on the stock in a research note on Friday. Weiss Ratings upgraded Serve Robotics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, October 30th. Finally, Zacks Research lowered Serve Robotics from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $13.37.

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous, electric sidewalk delivery robots designed to transport goods over short distances. Its robots use cameras, sensors, artificial intelligence and remote human assistance to navigate sidewalks, cross streets and interact with customers while delivering items such as restaurant meals, groceries and other local orders.

The company's services are primarily aimed at on-demand delivery platforms, restaurants and retailers. Serve has deployed its robots for commercial deliveries in the United States, including the Los Angeles area, and has worked with partners such as Uber Eats to support local delivery operations.

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