Serve Robotics (NASDAQ:SERV) Trading 6.9% Higher - Time to Buy?

Key Points

• Shares rose 6.9% to about $9.86 on Monday with below-average volume, and analysts maintain a consensus Buy rating with an average price target of $17.67 (mix: 2 Strong Buy, 6 Buy, 1 Sell).
• Serve remains markedly unprofitable — market cap ~$748.6M, PE -6.22 and a net margin of -3,821.98% — though it beat Q1 estimates with EPS of ($0.46) and revenue of $0.88M; analysts expect -2.39 EPS for the year.
• Insiders have sold shares recently (CEO and COO sold on April 8), with 88,837 shares sold in the past three months; company insiders still own 21.40% of the stock.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s share price traded up 6.9% on Monday . The stock traded as high as $9.91 and last traded at $9.8550. 1,940,872 shares were traded during mid-day trading, a decline of 61% from the average session volume of 5,023,100 shares. The stock had previously closed at $9.22.

Wall Street Analysts Forecast Growth

SERV has been the subject of several research analyst reports. Guggenheim started coverage on shares of Serve Robotics in a research report on Monday, April 20th. They issued a "buy" rating and a $13.00 price target for the company. Loop Capital set a $16.00 target price on shares of Serve Robotics in a research note on Wednesday, December 31st. Northland Securities restated an "outperform" rating and issued a $26.00 target price on shares of Serve Robotics in a report on Friday, January 2nd. Freedom Capital upgraded Serve Robotics to a "strong-buy" rating in a report on Wednesday, December 31st. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Serve Robotics in a research note on Friday, March 27th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $17.67.

Serve Robotics Price Performance

The firm has a market capitalization of $748.57 million, a PE ratio of -6.22 and a beta of 2.26. The company has a fifty day moving average of $9.27 and a 200-day moving average of $11.01.

Serve Robotics (NASDAQ:SERV - Get Free Report) last issued its earnings results on Thursday, March 12th. The company reported ($0.46) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.03. The company had revenue of $0.88 million for the quarter, compared to analyst estimates of $0.77 million. Serve Robotics had a negative return on equity of 38.54% and a negative net margin of 3,821.98%. Equities analysts anticipate that Serve Robotics Inc. will post -2.39 EPS for the current year.

Insider Buying and Selling

In other news, CEO Ali Kashani sold 14,541 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $8.62, for a total transaction of $125,343.42. Following the transaction, the chief executive officer owned 3,320,373 shares in the company, valued at $28,621,615.26. This represents a 0.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Touraj Parang sold 3,861 shares of Serve Robotics stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $8.62, for a total transaction of $33,281.82. Following the completion of the sale, the chief operating officer directly owned 1,312,344 shares of the company's stock, valued at approximately $11,312,405.28. The trade was a 0.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 88,837 shares of company stock valued at $866,279. 21.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SERV. Farther Finance Advisors LLC acquired a new stake in Serve Robotics in the 3rd quarter worth approximately $27,000. Gordian Capital Singapore Pte Ltd acquired a new stake in shares of Serve Robotics in the fourth quarter worth $31,000. Quadrant Capital Group LLC acquired a new position in Serve Robotics in the 4th quarter valued at $31,000. EverSource Wealth Advisors LLC raised its holdings in Serve Robotics by 299.0% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,192 shares of the company's stock worth $33,000 after acquiring an additional 2,392 shares during the period. Finally, CWM LLC lifted its position in Serve Robotics by 514.1% during the 4th quarter. CWM LLC now owns 3,439 shares of the company's stock worth $36,000 after acquiring an additional 2,879 shares during the last quarter.

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous sidewalk delivery robots designed to transform last-mile logistics for restaurants, retailers and grocery brands. By combining proprietary hardware, sensor suites and dispatch software, the company enables on-demand deliveries of food, beverages and consumer goods while minimizing reliance on traditional vehicle fleets.

The core Serve robot integrates four-wheeled mobility, LiDAR and vision cameras with AI-driven navigation algorithms to detect obstacles, traverse urban sidewalks and interact safely with pedestrians.

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