Serve Robotics (NASDAQ:SERV) Trading Up 4.9% - Still a Buy?

Key Points

• Serve Robotics Inc. shares increased by 4.9%, closing at $9.70, though trading volume was down 74% compared to the average.
• Despite a downgrade from Seaport Res Ptn from a "strong-buy" to a "hold" rating, the average rating for the stock remains "Buy" with a target price of $18.67.
• The company reported negative earnings with an EPS of ($0.36), missing expectations, and it also has a significant negative return on equity of 36.47%.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report)'s stock price was up 4.9% during trading on Friday . The stock traded as high as $9.81 and last traded at $9.70. Approximately 1,837,560 shares changed hands during trading, a decline of 74% from the average daily volume of 7,045,147 shares. The stock had previously closed at $9.25.

Wall Street Analyst Weigh In

Several equities analysts recently commented on SERV shares. Seaport Res Ptn downgraded shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Cantor Fitzgerald started coverage on shares of Serve Robotics in a report on Thursday, May 22nd. They set an "overweight" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $18.67.

Serve Robotics Stock Performance

The firm has a market capitalization of $581.45 million, a P/E ratio of -8.44 and a beta of -0.11. The stock's 50 day simple moving average is $10.69 and its 200 day simple moving average is $9.77.

Serve Robotics (NASDAQ:SERV - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.36) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.13). The company had revenue of $0.64 million during the quarter, compared to the consensus estimate of $0.63 million. Serve Robotics had a negative return on equity of 36.47% and a negative net margin of 3,726.00%. On average, analysts anticipate that Serve Robotics Inc. will post -0.98 earnings per share for the current year.

Insiders Place Their Bets

In other Serve Robotics news, CEO Ali Kashani sold 7,467 shares of the company's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $10.74, for a total value of $80,195.58. Following the transaction, the chief executive officer directly owned 3,598,737 shares in the company, valued at $38,650,435.38. This represents a 0.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Anthony Armenta sold 2,915 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $10.68, for a total transaction of $31,132.20. Following the completion of the sale, the insider directly owned 612,664 shares of the company's stock, valued at $6,543,251.52. The trade was a 0.47% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 42,182 shares of company stock worth $459,302. 5.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Serve Robotics

A number of hedge funds and other institutional investors have recently bought and sold shares of SERV. Allworth Financial LP lifted its position in Serve Robotics by 316.7% during the second quarter. Allworth Financial LP now owns 3,900 shares of the company's stock valued at $45,000 after acquiring an additional 2,964 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Serve Robotics during the first quarter valued at approximately $49,000. KLP Kapitalforvaltning AS purchased a new stake in Serve Robotics during the first quarter valued at approximately $49,000. Ameritas Investment Partners Inc. purchased a new stake in Serve Robotics during the second quarter valued at approximately $55,000. Finally, Charles Schwab Investment Management Inc. lifted its position in Serve Robotics by 13.8% during the first quarter. Charles Schwab Investment Management Inc. now owns 12,728 shares of the company's stock valued at $73,000 after acquiring an additional 1,545 shares during 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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