Serve Robotics (NASDAQ:SERV) Shares Down 1.5% - Should You Sell?

Key Points

• Serve Robotics Inc. shares fell by 1.5%, trading at approximately $10.14, with an 81% drop in trading volume compared to the average session.
• Analysts remain optimistic, with a consensus Buy rating and a target price of $17.75, despite the company's recent earnings miss.
• Insider selling activity has been noted, with significant shares sold by executives, indicating possible concerns about the company’s performance or strategy.

Shares of Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) fell 1.5% during mid-day trading on Wednesday . The company traded as low as $10.05 and last traded at $10.14. 1,324,768 shares were traded during mid-day trading, a decline of 81% from the average session volume of 7,124,051 shares. The stock had previously closed at $10.29.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SERV. Wedbush began coverage on shares of Serve Robotics in a report on Wednesday, August 27th. They issued an "outperform" rating and a $15.00 price objective on the stock. Singular Research upgraded shares of Serve Robotics to a "moderate buy" rating in a report on Tuesday, August 26th. Cantor Fitzgerald began coverage on shares of Serve Robotics in a report on Thursday, May 22nd. They issued an "overweight" rating on the stock. Finally, Seaport Res Ptn cut shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $17.75.

Serve Robotics Stock Down 6.0%

The stock's fifty day moving average price is $10.66 and its 200 day moving average price is $9.29. The stock has a market cap of $579.36 million, a PE ratio of -8.53 and a beta of -0.19.

Serve Robotics (NASDAQ:SERV - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.23) by ($0.13). Serve Robotics had a negative return on equity of 36.47% and a negative net margin of 3,726.00%.The company had revenue of $0.64 million during the quarter, compared to analysts' expectations of $0.63 million. On average, equities research analysts expect that Serve Robotics Inc. will post -0.98 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Anthony Armenta sold 2,915 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $10.68, for a total value of $31,132.20. Following the sale, the insider owned 612,664 shares in the company, valued at approximately $6,543,251.52. This trade represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Evan Dunn sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $10.01, for a total transaction of $50,050.00. Following the completion of the sale, the general counsel owned 230,767 shares in the company, valued at $2,309,977.67. This represents a 2.12% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 53,103 shares of company stock valued at $558,253 in the last ninety days. Corporate insiders own 21.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SERV. Capital Fund Management S.A. bought a new position in Serve Robotics in the first quarter worth approximately $4,244,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Serve Robotics by 616.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 679,014 shares of the company's stock worth $3,972,000 after acquiring an additional 584,302 shares during the period. Geode Capital Management LLC raised its position in Serve Robotics by 176.0% in the second quarter. Geode Capital Management LLC now owns 878,668 shares of the company's stock worth $10,054,000 after acquiring an additional 560,361 shares during the period. Cubist Systematic Strategies LLC bought a new position in Serve Robotics in the first quarter worth approximately $2,064,000. Finally, Captrust Financial Advisors bought a new position in Serve Robotics in the fourth quarter worth approximately $3,672,000.

Serve Robotics Company Profile

Serve Robotics Inc designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc in July 2023.

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