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

Key Points

• Serve Robotics Inc. shares gapped down significantly, opening at $16.22 after a previous close of $17.68, with a trading volume of over 13 million shares.
• Recent analyst ratings include a downgrade from Seaport Res Ptn to a "hold" and a price target set by Wedbush at $15.00, indicating mixed sentiments about the stock's performance.
• Insider selling has raised concerns, with notable sales including insider Euan Abraham offloading 25,000 shares, suggesting potential confidence issues in the company's outlook.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $17.68, but opened at $16.22. Serve Robotics shares last traded at $16.17, with a volume of 13,697,712 shares traded.

Analysts Set New Price Targets

SERV has been the topic of a number of recent research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Serve Robotics in a report on Wednesday. Seaport Res Ptn cut Serve Robotics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Wedbush started coverage on Serve Robotics in a research note on Wednesday, August 27th. They set an "outperform" rating and a $15.00 price objective on the stock. Finally, Singular Research upgraded Serve Robotics to a "moderate buy" rating in a research note on Tuesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Serve Robotics currently has an average rating of "Moderate Buy" and an average price target of $17.75.

Serve Robotics Stock Performance

The company has a market capitalization of $912.81 million, a P/E ratio of -13.75 and a beta of -0.70. The stock has a 50 day moving average price of $11.41 and a 200 day moving average price of $9.92.

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

Insider Activity at Serve Robotics

In other news, insider Euan Abraham sold 25,000 shares of Serve Robotics stock in a transaction on Friday, September 19th. The stock was sold at an average price of $14.99, for a total transaction of $374,750.00. Following the sale, the insider directly owned 227,019 shares in the company, valued at $3,403,014.81. The trade was a 9.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Evan Dunn sold 20,458 shares of Serve Robotics stock in a transaction on Tuesday, October 7th. The stock was sold at an average price of $15.09, for a total value of $308,711.22. Following the sale, the general counsel owned 210,309 shares in the company, valued at $3,173,562.81. The trade was a 8.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 365,102 shares of company stock worth $4,134,977. 5.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Serve Robotics

Large investors have recently added to or reduced their stakes in the company. Allworth Financial LP increased 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 acquiring an additional 2,964 shares during the last quarter. Ameritas Investment Partners Inc. purchased a new stake in Serve Robotics in the 2nd quarter worth about $55,000. Total Investment Management Inc. purchased a new stake in Serve Robotics in the 2nd quarter worth about $76,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Serve Robotics in the 1st quarter worth about $49,000. Finally, KLP Kapitalforvaltning AS purchased a new stake in Serve Robotics in the 1st quarter worth about $49,000.

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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