Serve Robotics (NASDAQ:SERV) Shares Up 13.8% - Should You Buy?

Key Points

• Serve Robotics' shares rose 13.8% during mid-day trading, reaching prices between $15.28 and $14.93, with a significant increase in trading volume compared to average levels.
• The company reported a quarterly earnings loss of ($0.36) EPS, missing the consensus estimate, while generating revenue slightly above expectations at $0.64 million.
• Analysts have mixed ratings on the stock, with one Strong Buy, four Buys, one Hold, and one Sell, resulting in an average rating of "Moderate Buy" and a target price consensus of $17.75.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) was up 13.8% during mid-day trading on Monday . The company traded as high as $15.28 and last traded at $14.93. Approximately 17,756,601 shares changed hands during trading, an increase of 135% from the average daily volume of 7,560,729 shares. The stock had previously closed at $13.12.

Wall Street Analyst Weigh In

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

Serve Robotics Trading Up 13.8%

The firm has a market cap of $894.01 million, a price-to-earnings ratio of -12.98 and a beta of -0.70. The stock's 50 day moving average is $11.11 and its 200 day moving average is $9.79.

Serve Robotics (NASDAQ:SERV - Get Free Report) last issued its quarterly earnings data 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 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%. On average, equities research analysts predict that Serve Robotics Inc. will post -0.98 EPS for the current year.

Insider Activity

In related news, insider Euan Abraham sold 25,000 shares of the company's stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $14.99, for a total transaction of $374,750.00. Following the completion of the sale, the insider owned 227,019 shares of the company's stock, valued at $3,403,014.81. This represents a 9.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Brian Read sold 10,216 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $9.82, for a total value of $100,321.12. Following the transaction, the chief financial officer directly owned 373,263 shares of the company's stock, valued at approximately $3,665,442.66. The trade was a 2.66% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 325,233 shares of company stock worth $3,532,528. 21.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Serve Robotics

Several large investors have recently bought and sold shares of SERV. Allworth Financial LP grew its holdings in shares of Serve Robotics by 316.7% during the second 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. Ameritas Investment Partners Inc. acquired a new position in Serve Robotics in the 2nd quarter valued at approximately $55,000. Total Investment Management Inc. bought a new position in shares of Serve Robotics during the second quarter valued at $76,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Serve Robotics during the first quarter valued at $49,000. Finally, KLP Kapitalforvaltning AS acquired a new position in shares of Serve Robotics during the first quarter worth $49,000.

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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