Serve Robotics (NASDAQ:SERV) Stock Price Down 15.7% - Should You Sell?

Key Points

• Serve Robotics Inc. experienced a significant stock price drop of 15.7%, closing at $14.90 after earlier trading as low as $14.58.
• Recent earnings reports highlighted that the company posted a loss of ($0.36) earnings per share, missing estimates, while analysts predict a -0.98 earnings per share for the current fiscal year.
• Despite the downturn, the stock maintains a consensus rating of "Moderate Buy" with a target price of $17.75, indicating some optimism among analysts.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s stock price dropped 15.7% during mid-day trading on Friday . The company traded as low as $14.58 and last traded at $14.90. Approximately 38,567,097 shares were traded during trading, an increase of 376% from the average daily volume of 8,108,756 shares. The stock had previously closed at $17.68.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SERV. Weiss Ratings restated a "sell (d-)" rating on shares of Serve Robotics in a research note on Wednesday. Wedbush initiated coverage on shares of Serve Robotics in a research report on Wednesday, August 27th. They set an "outperform" rating and a $15.00 target price on the stock. Seaport Res Ptn downgraded shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Finally, Singular Research upgraded shares of Serve Robotics to a "moderate buy" rating in a report on Tuesday, August 26th. One investment 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 stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $17.75.

Serve Robotics Stock Performance

The firm has a market capitalization of $892.21 million, a P/E ratio of -12.96 and a beta of -0.70. The stock has a fifty day moving average price of $11.41 and a two-hundred day moving average price of $9.92.

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 net margin of 3,726.00% and a negative return on equity of 36.47%. The firm had revenue of $0.64 million during the quarter, compared to the consensus estimate of $0.63 million. As a group, research analysts anticipate that Serve Robotics Inc. will post -0.98 earnings per share for the current fiscal year.

Insider Buying and Selling at Serve Robotics

In other news, COO Touraj Parang sold 4,825 shares of the company's stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $15.25, for a total transaction of $73,581.25. Following the completion of the transaction, the chief operating officer directly owned 1,360,591 shares of the company's stock, valued at approximately $20,749,012.75. This represents a 0.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Euan Abraham sold 25,000 shares of the company's stock in a transaction that occurred on Friday, September 19th. The shares were sold at an average price of $14.99, for a total value of $374,750.00. Following the transaction, the insider directly owned 227,019 shares of the company's stock, valued at $3,403,014.81. This trade represents a 9.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 365,102 shares of company stock worth $4,134,977. 5.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Serve Robotics

Institutional investors have recently modified their holdings of the company. Allworth Financial LP grew 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. bought a new position in Serve Robotics in the 1st quarter worth about $49,000. KLP Kapitalforvaltning AS bought a new position in Serve Robotics in the 1st quarter worth about $49,000. Ameritas Investment Partners Inc. bought a new position in Serve Robotics in the 2nd quarter worth approximately $55,000. Finally, Charles Schwab Investment Management Inc. grew its holdings in Serve Robotics by 13.8% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 12,728 shares of the company's stock worth $73,000 after buying an additional 1,545 shares in the last quarter.

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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