Serve Robotics (NASDAQ:SERV) Stock Sees Heavy Call Option Buying

Key Points

• Call-option activity increased: Traders bought 18,450 Serve Robotics call options, about 15% above the average daily volume, signaling heightened speculative interest.
• Analyst sentiment remains generally positive but targets fell: The stock has a “Moderate Buy” consensus rating and a $14.77 average price target, although several firms recently cut targets to $7.00.
• Serve Robotics remains financially challenged: Shares closed at $4.65, near the one-year low, while the company reported a larger-than-expected quarterly loss and weaker-than-expected revenue. Insiders also sold shares to cover tax obligations tied to vested equity awards.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) saw unusually large options trading activity on Wednesday. Traders purchased 18,450 call options on the company. This represents an increase of approximately 15% compared to the average daily volume of 16,049 call options.

Insider Transactions at Serve Robotics

In other Serve Robotics news, CEO Ali Kashani sold 45,158 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $4.56, for a total value of $205,920.48. Following the transaction, the chief executive officer directly owned 3,232,933 shares of the company's stock, valued at $14,742,174.48. This represents a 1.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Touraj Parang sold 37,993 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $4.55, for a total value of $172,868.15. Following the sale, the chief operating officer owned 1,260,251 shares of the company's stock, valued at approximately $5,734,142.05. This represents a 2.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 124,220 shares of company stock worth $585,554. 5.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Serve Robotics

A number of institutional investors have recently added to or reduced their stakes in the stock. FNY Investment Advisers LLC bought a new position in Serve Robotics in the 2nd quarter valued at approximately $26,000. Allworth Financial LP acquired a new position in shares of Serve Robotics during the second quarter worth $26,000. Gordian Capital Singapore Pte Ltd bought a new position in shares of Serve Robotics in the 4th quarter valued at $31,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Serve Robotics by 299.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,192 shares of the company's stock valued at $33,000 after acquiring an additional 2,392 shares in the last quarter. Finally, Harbour Investments Inc. boosted its holdings in shares of Serve Robotics by 149.3% during the 4th quarter. Harbour Investments Inc. now owns 3,740 shares of the company's stock valued at $39,000 after acquiring an additional 2,240 shares in the last quarter.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SERV. Freedom Capital raised Serve Robotics from a "hold" rating to a "strong-buy" rating in a report on Friday, August 14th. Cantor Fitzgerald cut Serve Robotics from an "overweight" rating to a "neutral" rating in a research report on Friday, August 7th. Guggenheim dropped their price objective on shares of Serve Robotics from $13.00 to $7.00 and set a "buy" rating for the company in a research note on Monday, August 10th. Weiss Ratings raised shares of Serve Robotics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. Finally, Oppenheimer lowered their target price on shares of 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, five have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $14.77.

Serve Robotics Stock Performance

Shares of Serve Robotics stock traded up $0.02 on Wednesday, reaching $4.65. 5,492,536 shares of the stock were exchanged, compared to its average volume of 4,638,630. Serve Robotics has a one year low of $4.17 and a one year high of $18.64. The firm has a market cap of $403.20 million, a PE ratio of -1.90 and a beta of 1.25. The firm's 50 day moving average is $4.80 and its 200-day moving average is $6.89.

Serve Robotics (NASDAQ:SERV - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share for the quarter, missing the consensus estimate of ($0.69) by ($0.11). The business had revenue of $3.24 million during the quarter, compared to analyst estimates of $3.51 million. Serve Robotics had a negative net margin of 2,315.80% and a negative return on equity of 55.34%. On average, equities research analysts expect that Serve Robotics will post -2.71 EPS for the current fiscal year.

About Serve Robotics

Serve Robotics develops and operates autonomous sidewalk 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 sidewalks, crossings, and other urban environments while allowing customers to receive deliveries through a digital platform.

The company's delivery service is intended for restaurants, retailers, and delivery platforms seeking an alternative to traditional courier services.

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