Serve Robotics (NASDAQ:SERV) Trading Down 4.3% - Here's What Happened

Key Points

• Serve Robotics shares fell 4.3% on Friday, with the stock trading as low as $10.62, and 3.38 million shares exchanged, indicating a significant drop in trading volume.
• Recent analyst ratings include a downgrade from Seaport Res Ptn from "strong-buy" to "hold," while Wedbush set a price target of $15.00, pointing towards mixed sentiment among analysts.
• Serve Robotics reported a loss of $0.36 EPS for the last quarter, missing estimates, despite a revenue of $0.64 million, reflecting ongoing challenges for the company.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) shares were down 4.3% during trading on Friday . The stock traded as low as $10.62 and last traded at $10.77. Approximately 3,382,221 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 7,143,178 shares. The stock had previously closed at $11.25.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on SERV shares. Wedbush assumed coverage on Serve Robotics in a research report on Wednesday, August 27th. They set an "outperform" rating and a $15.00 price objective on the stock. Singular Research raised shares of Serve Robotics to a "moderate buy" rating in a research 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 lowered shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Serve Robotics has an average rating of "Buy" and an average price target of $17.75.

Serve Robotics Stock Performance

The company has a market capitalization of $616.17 million, a price-to-earnings ratio of -8.95 and a beta of -0.16. The business's 50 day moving average is $10.67 and its 200 day moving average is $9.28.

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 (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.13). Serve Robotics had a negative net margin of 3,726.00% and a negative return on equity of 36.47%. The company had revenue of $0.64 million for the quarter, compared to analyst estimates of $0.63 million. Sell-side analysts predict that Serve Robotics Inc. will post -0.98 EPS for the current year.

Insider Activity at Serve Robotics

In other news, CEO Ali Kashani sold 7,467 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $10.74, for a total value of $80,195.58. Following the transaction, the chief executive officer directly owned 3,598,737 shares of the company's stock, valued at approximately $38,650,435.38. This represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Touraj Parang sold 5,565 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $10.64, for a total value of $59,211.60. Following the completion of the sale, the chief operating officer owned 1,419,106 shares in the company, valued at approximately $15,099,287.84. This represents a 0.39% 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 worth $558,253 in the last quarter. 21.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Serve Robotics

Several hedge funds have recently added to or reduced their stakes in SERV. Capital Fund Management S.A. purchased a new position in shares of Serve Robotics during the 1st quarter valued at about $4,244,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of 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 buying an additional 584,302 shares during the last quarter. Geode Capital Management LLC grew its holdings in Serve Robotics by 176.0% during 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 purchased a new position in Serve Robotics during the first quarter valued at approximately $2,064,000. Finally, Captrust Financial Advisors acquired a new position in Serve Robotics in the fourth quarter valued at approximately $3,672,000.

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.