Serve Robotics (NASDAQ:SERV) Trading Down 7.2% - Here's Why

Key Points

• Shares of Serve Robotics Inc. (NASDAQ:SERV) experienced a 7.2% decline in trading, closing at $14.33, after previously closing at $15.44.
• Analysts have various ratings for Serve Robotics, with a consensus target price of $18.50 and ratings ranging from Sell to Outperform, highlighting mixed perceptions on its stock potential.
• The company reported a loss of ($0.36) EPS versus analysts' expectation of ($0.23), alongside incredibly high negative margins, pointing to operational challenges ahead.

Shares of Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) traded down 7.2% during trading on Friday . The company traded as low as $14.06 and last traded at $14.33. 9,786,568 shares were traded during trading, an increase of 17% from the average session volume of 8,337,880 shares. The stock had previously closed at $15.44.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Serve Robotics in a research report on Wednesday, October 8th. Seaport Res Ptn cut shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 11th. Citigroup reaffirmed an "outperform" rating on shares of Serve Robotics in a research report on Monday. Northland Securities set a $26.00 price objective on shares of Serve Robotics in a research report on Monday. Finally, Wedbush started coverage on shares of Serve Robotics in a research report on Wednesday, August 27th. They set an "outperform" rating and a $15.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $18.50.

Serve Robotics Price Performance

The stock's 50-day moving average price is $11.98 and its 200-day moving average price is $10.25. The company has a market cap of $858.08 million, a P/E ratio of -12.46 and a beta of -0.70.

Serve Robotics (NASDAQ:SERV - Get Free Report) last announced its earnings results 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 business had revenue of $0.64 million during the quarter, compared to the consensus estimate of $0.63 million. Serve Robotics had a negative net margin of 3,726.00% and a negative return on equity of 36.47%. As a group, analysts expect that Serve Robotics Inc. will post -0.98 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Euan Abraham sold 25,000 shares of the business'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 transaction, the insider owned 227,019 shares of the company's stock, valued at $3,403,014.81. The trade was a 9.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Brian Read sold 10,216 shares of the business'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 completion of the transaction, the chief financial officer directly owned 373,263 shares of the company's stock, valued at approximately $3,665,442.66. This trade represents a 2.66% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 365,102 shares of company stock valued at $4,134,977 over the last 90 days. 5.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SERV. Farther Finance Advisors LLC acquired a new position in Serve Robotics in the third quarter valued at about $27,000. Allworth Financial LP raised its stake in Serve Robotics by 316.7% in the second quarter. Allworth Financial LP now owns 3,900 shares of the company's stock valued at $45,000 after purchasing an additional 2,964 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Serve Robotics in the first quarter valued at about $49,000. KLP Kapitalforvaltning AS acquired a new position in Serve Robotics during the first quarter worth about $49,000. Finally, Ameritas Investment Partners Inc. acquired a new position in Serve Robotics during the second quarter worth about $55,000.

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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