Serve Robotics (NASDAQ:SERV) Stock Price Down 3.4% on Disappointing Earnings

Key Points

• Serve Robotics' share price declined by 3.4% to close at $10.23, significantly below its 50-day moving average of $11.11, with trading volume down 62% from its average.
• Analysts have a consensus rating of Buy for Serve Robotics, with a target price of $18.67 and three analysts recommending a buy, while two rated it as a strong buy.
• Recent insider selling included Anthony Armenta and COO Touraj Parang, who sold shares totaling roughly $90,000, marking a slight decrease in their respective holdings.

Shares of Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) traded down 3.4% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $10.01 and last traded at $10.23. 2,711,076 shares were traded during trading, a decline of 62% from the average session volume of 7,185,460 shares. The stock had previously closed at $10.59.

The company reported ($0.36) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.13). The firm had revenue of $0.64 million during the quarter, compared to analysts' expectations of $0.63 million. Serve Robotics had a negative return on equity of 41.59% and a negative net margin of 3,726.00%.

Wall Street Analysts Forecast Growth

Separately, Cantor Fitzgerald assumed coverage on Serve Robotics in a research report on Thursday, May 22nd. They issued an "overweight" rating on the stock. Three equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $18.67.

Insider Buying and Selling at Serve Robotics

In other Serve Robotics news, COO Touraj Parang sold 5,565 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $10.64, for a total transaction of $59,211.60. Following the sale, the chief operating officer directly owned 1,419,106 shares in the company, valued at $15,099,287.84. This represents a 0.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Ali Kashani sold 7,467 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $10.74, for a total value of $80,195.58. Following the sale, the chief executive officer owned 3,598,737 shares in the company, valued at approximately $38,650,435.38. This trade represents a 0.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 52,082 shares of company stock valued at $550,477. Corporate insiders own 21.40% of the company's stock.

Institutional Investors Weigh In On Serve Robotics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Uber Technologies Inc bought a new position in Serve Robotics in the fourth quarter worth approximately $71,534,000. Capital Fund Management S.A. purchased a new stake in shares of Serve Robotics in the 1st quarter worth $4,244,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Serve Robotics by 616.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 679,014 shares of the company's stock worth $3,972,000 after buying an additional 584,302 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Serve Robotics by 176.0% in the 2nd quarter. Geode Capital Management LLC now owns 878,668 shares of the company's stock worth $10,054,000 after buying an additional 560,361 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Serve Robotics by 74.6% in the 4th quarter. Vanguard Group Inc. now owns 1,274,303 shares of the company's stock worth $17,203,000 after buying an additional 544,537 shares during the period.

Serve Robotics Stock Performance

The firm has a market capitalization of $591.76 million, a PE ratio of -9.03 and a beta of -0.11. The company has a fifty day simple moving average of $11.05 and a two-hundred day simple moving average of $10.05.

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.