Serve Robotics (NASDAQ:SERV) Stock Price Down 11.8% - Should You Sell?

Key Points

• Serve Robotics Inc. experienced a significant stock price decline of 11.8%, closing at $15.44 after trading as low as $15.41, with trading volume increasing by 91% compared to the average.
• Analysts have given a consensus rating of "Moderate Buy" for Serve Robotics, with price targets ranging from $15.00 to $26.00, indicating mixed sentiment about the stock's future performance.
• Despite low earnings with a reported (0.36) earnings per share, the market capitalization stands at $924.55 million, reflecting interest in the company's growth potential in the robotics delivery sector.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s stock price dropped 11.8% during trading on Thursday . The company traded as low as $15.41 and last traded at $15.44. Approximately 15,894,846 shares changed hands during mid-day trading, an increase of 91% from the average daily volume of 8,328,712 shares. The stock had previously closed at $17.51.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Wedbush started coverage on Serve Robotics in a research note on Wednesday, August 27th. They issued an "outperform" rating and a $15.00 price target on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Serve Robotics in a research report on Wednesday, October 8th. Singular Research raised shares of Serve Robotics to a "moderate buy" rating in a research report on Tuesday, August 26th. Citigroup reiterated an "outperform" rating on shares of Serve Robotics in a report on Monday. Finally, Northland Securities set a $26.00 price objective on Serve Robotics in a report on Monday. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.50.

Serve Robotics Stock Down 11.8%

The firm's 50 day simple moving average is $11.88 and its 200-day simple moving average is $10.18. The company has a market capitalization of $924.55 million, a PE ratio of -13.43 and a beta of -0.70.

Serve Robotics (NASDAQ:SERV - Get Free Report) last posted its 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). Serve Robotics had a negative net margin of 3,726.00% and a negative return on equity of 36.47%. The business had revenue of $0.64 million for the quarter, compared to analyst estimates of $0.63 million. As a group, sell-side analysts anticipate that Serve Robotics Inc. will post -0.98 EPS for the current fiscal year.

Insider Activity at Serve Robotics

In other news, insider Euan Abraham sold 25,000 shares of the company's stock in a transaction dated Friday, September 19th. The stock was sold at an average price of $14.99, for a total value 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Brian Read sold 10,216 shares of the firm's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $9.82, for a total value of $100,321.12. Following the sale, the chief financial officer owned 373,263 shares in the company, valued at approximately $3,665,442.66. The trade was a 2.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 365,102 shares of company stock valued at $4,134,977 over the last 90 days. Corporate insiders own 5.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SERV. Farther Finance Advisors LLC acquired a new position in Serve Robotics in the 3rd quarter worth $27,000. Allworth Financial LP increased its position 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 acquiring an additional 2,964 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Serve Robotics in the first quarter worth about $49,000. KLP Kapitalforvaltning AS purchased a new position in Serve Robotics in the first quarter valued at about $49,000. Finally, Ameritas Investment Partners Inc. purchased a new position in Serve Robotics in the second quarter valued at about $55,000.

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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