Serve Robotics (NASDAQ:SERV) Shares Gap Down - Here's What Happened

Key Points

• Serve Robotics shares gapped down from $10.38 to $10.07 at market open, closing last at $9.92 with a trading volume of over 1.4 million shares.
• Analysts maintain an average rating of "Buy" for Serve Robotics, with a price target of $18.67; the company reported a quarterly loss of ($0.36) earnings per share, missing estimates.
• Insider sales included CEO Ali Kashani selling 7,467 shares, alongside significant institutional interest, with Allworth Financial LP increasing its holdings by 316.7%.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $10.38, but opened at $10.07. Serve Robotics shares last traded at $9.92, with a volume of 1,475,393 shares.

Analyst Ratings Changes

Separately, Cantor Fitzgerald started coverage on shares of Serve Robotics in a research note on Thursday, May 22nd. They set an "overweight" rating for the company. Three research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $18.67.

Serve Robotics Stock Performance

The company has a 50 day moving average of $11.05 and a two-hundred day moving average of $10.05. The stock has a market capitalization of $579.51 million, a PE ratio of -8.84 and a beta of -0.11.

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 analysts' consensus estimates of ($0.23) by ($0.13). Serve Robotics had a negative return on equity of 41.59% and a negative net margin of 3,726.00%. The business had revenue of $0.64 million for the quarter, compared to analysts' expectations of $0.63 million. As a group, research analysts predict that Serve Robotics Inc. will post -0.98 EPS for the current fiscal year.

Insider Activity at Serve Robotics

In related news, CEO Ali Kashani sold 7,467 shares of the company's stock in a transaction on 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 $38,650,435.38. This represents a 0.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Anthony Armenta sold 2,915 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $10.68, for a total value of $31,132.20. Following the completion of the transaction, the insider owned 612,664 shares of the company's stock, valued at $6,543,251.52. This trade represents a 0.47% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 43,182 shares of company stock worth $470,822 in the last 90 days. 21.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SERV. Allworth Financial LP boosted its position in Serve Robotics by 316.7% in the second quarter. Allworth Financial LP now owns 3,900 shares of the company's stock valued at $45,000 after buying an additional 2,964 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Serve Robotics in the 1st quarter valued at $49,000. KLP Kapitalforvaltning AS purchased a new stake in shares of Serve Robotics in the 1st quarter valued at $49,000. Charles Schwab Investment Management Inc. increased its stake in shares of Serve Robotics by 13.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 12,728 shares of the company's stock worth $73,000 after acquiring an additional 1,545 shares during the period. Finally, Arkadios Wealth Advisors purchased a new position in shares of Serve Robotics during the first quarter worth $74,000.

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.

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