Serve Robotics (NASDAQ:SERV) Trading Down 3.5% - Should You Sell?

Key Points

• Serve Robotics' stock price dropped by 3.5% to $9.83 after trading as low as $9.85, with a significant decline in trading volume, down 79% from the average.
• Recent analyst reports saw Seaport Res Ptn downgrade Serve Robotics from a "strong-buy" to a "hold" rating, while Cantor Fitzgerald initiated coverage with an "overweight" rating; the average price target is currently pegged at $18.67.
• In the last 90 days, company insiders sold 43,182 shares valued at $470,822, with corporate insiders owning only 5.50% of the company's stock, indicating some potential concerns about insider confidence.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) shares fell 3.5% during trading on Friday . The stock traded as low as $9.85 and last traded at $9.83. 1,510,922 shares were traded during trading, a decline of 79% from the average session volume of 7,094,825 shares. The stock had previously closed at $10.18.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Seaport Res Ptn cut shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Cantor Fitzgerald began coverage on Serve Robotics in a research note on Thursday, May 22nd. They issued an "overweight" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $18.67.

Serve Robotics Price Performance

The company has a market cap of $576.05 million, a PE ratio of -8.37 and a beta of -0.11. The business has a 50-day moving average of $10.81 and a 200 day moving average of $9.82.

Serve Robotics (NASDAQ:SERV - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.13). The business had revenue of $0.64 million during the quarter, compared to analysts' expectations of $0.63 million. Serve Robotics had a negative return on equity of 36.47% and a negative net margin of 3,726.00%. On average, equities analysts predict that Serve Robotics Inc. will post -0.98 EPS 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 dated Tuesday, August 5th. The shares were sold at an average price of $10.68, for a total value of $31,132.20. Following the completion of the sale, the insider owned 612,664 shares in the company, valued at $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 Securities & Exchange Commission, which is available at this link. Also, CEO Ali Kashani sold 7,467 shares of Serve Robotics stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $10.74, for a total transaction of $80,195.58. Following the completion of the transaction, the chief executive officer owned 3,598,737 shares in the company, valued at approximately $38,650,435.38. This trade represents a 0.21% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,182 shares of company stock valued at $470,822 over the last ninety days. Company insiders own 21.40% of the company's stock.

Hedge Funds Weigh In On Serve Robotics

A number of hedge funds have recently made changes to their positions in the business. Allworth Financial LP grew its position in shares of Serve Robotics by 316.7% during the 2nd quarter. Allworth Financial LP now owns 3,900 shares of the company's stock worth $45,000 after buying an additional 2,964 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Serve Robotics in the 1st quarter valued at approximately $49,000. KLP Kapitalforvaltning AS bought a new position in Serve Robotics in the 1st quarter valued at approximately $49,000. Ameritas Investment Partners Inc. acquired a new stake in shares of Serve Robotics during the 2nd quarter worth approximately $55,000. Finally, Charles Schwab Investment Management Inc. grew 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 valued at $73,000 after purchasing 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.