Serve Robotics (NASDAQ:SERV) Shares Down 3.1% - Should You Sell?

Key Points

• Serve Robotics shares have declined by 3.1%, trading at $11.73 after hitting a low of $11.26, with trading volume increasing by 17% compared to the average.
• Analysts have given Serve Robotics a consensus rating of "Buy" with a target price of $17.75, though recent reports show varied ratings and some downgrades.
• Insider transactions include CEO Ali Kashani selling 164,735 shares valued over $1.7 million, indicating a 4.58% decrease in his position in the company.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s stock price fell 3.1% during mid-day trading on Wednesday . The stock traded as low as $11.26 and last traded at $11.73. 8,443,899 shares changed hands during trading, an increase of 17% from the average session volume of 7,204,607 shares. The stock had previously closed at $12.11.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Seaport Res Ptn downgraded shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 11th. Singular Research upgraded Serve Robotics to a "moderate buy" rating in a report on Tuesday, August 26th. Finally, Wedbush initiated coverage on Serve Robotics in a report on Wednesday, August 27th. They issued an "outperform" rating and a $15.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $17.75.

Serve Robotics Price Performance

The company has a market capitalization of $837.12 million, a price-to-earnings ratio of -12.16 and a beta of -0.19. The business has a fifty day moving average price of $10.82 and a 200 day moving average price of $9.37.

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

Insider Buying and Selling at Serve Robotics

In other news, General Counsel Evan Dunn sold 5,000 shares of Serve Robotics stock in a transaction dated 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 directly owned 230,767 shares in the company, valued at $2,309,977.67. The trade was a 2.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Euan Abraham sold 8,433 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $12.38, for a total value of $104,400.54. Following the completion of the sale, the insider owned 252,019 shares of the company's stock, valued at approximately $3,119,995.22. This trade represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 305,999 shares of company stock worth $3,203,268 over the last quarter. Insiders own 5.50% of the company's stock.

Institutional Investors Weigh In On Serve Robotics

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP lifted its holdings in Serve Robotics by 316.7% in the 2nd quarter. Allworth Financial LP now owns 3,900 shares of the company's stock worth $45,000 after purchasing an additional 2,964 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Serve Robotics in the 1st quarter worth approximately $49,000. KLP Kapitalforvaltning AS bought a new position in Serve Robotics in the 1st quarter worth approximately $49,000. Ameritas Investment Partners Inc. bought a new position in Serve Robotics in the 2nd quarter worth approximately $55,000. Finally, Charles Schwab Investment Management Inc. increased its position in Serve Robotics by 13.8% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 12,728 shares of the company's stock worth $73,000 after buying an additional 1,545 shares during the period.

About Serve Robotics

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.