Serve Robotics Target of Unusually Large Options Trading (NASDAQ:SERV)

Key Points

• Unusual options activity: Traders purchased 24,803 call options on SERV on Monday, roughly an 80% increase versus typical daily call volume, indicating heightened bullish interest.
• Stock rose but company remains unprofitable: SERV climbed 7.4% to $9.90 on Monday; the company has a market cap of about $749 million, a negative P/E, and a 52‑week range of $5.87–$18.64.
• Insider sales amid institutional buying and positive analyst view: Insiders sold 88,837 shares (~$866k) over the last 90 days (CEO sold shares to cover taxes) while firms like Goldman Sachs materially increased positions; analysts’ consensus is a "Buy" with a $17.67 price target.

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) saw some unusual options trading on Monday. Stock traders acquired 24,803 call options on the stock. This is an increase of approximately 80% compared to the typical daily volume of 13,745 call options.

Serve Robotics Trading Up 7.4%

NASDAQ:SERV traded up $0.68 during trading hours on Monday, hitting $9.90. 2,927,559 shares of the company were exchanged, compared to its average volume of 5,034,604. The company has a fifty day simple moving average of $9.27 and a 200 day simple moving average of $11.01. Serve Robotics has a one year low of $5.87 and a one year high of $18.64. The stock has a market capitalization of $749.41 million, a price-to-earnings ratio of -6.23 and a beta of 2.26.

Serve Robotics (NASDAQ:SERV - Get Free Report) last posted its quarterly earnings data 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. Serve Robotics had a negative return on equity of 38.54% and a negative net margin of 3,821.98%.The firm had revenue of $0.88 million during the quarter, compared to analyst estimates of $0.77 million. Equities research analysts predict that Serve Robotics will post -2.39 earnings per share for the current fiscal year.

Insider Activity at Serve Robotics

In related news, CEO Ali Kashani sold 14,541 shares of the firm's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $8.62, for a total transaction of $125,343.42. Following the sale, the chief executive officer owned 3,320,373 shares of the company's stock, valued at $28,621,615.26. This trade represents a 0.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brian Read sold 3,185 shares of the firm's stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $10.33, for a total value of $32,901.05. Following the sale, the chief financial officer directly owned 325,856 shares in the company, valued at approximately $3,366,092.48. This trade represents a 0.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 88,837 shares of company stock worth $866,279 over the last 90 days. 21.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SERV. Goldman Sachs Group Inc. raised its position in shares of Serve Robotics by 280.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 297,138 shares of the company's stock worth $1,709,000 after acquiring an additional 219,018 shares in the last quarter. Creative Planning grew its stake in shares of Serve Robotics by 25.9% in the 2nd quarter. Creative Planning now owns 12,923 shares of the company's stock valued at $148,000 after buying an additional 2,655 shares during the period. JPMorgan Chase & Co. grew its stake in shares of Serve Robotics by 294.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 29,905 shares of the company's stock valued at $342,000 after buying an additional 22,320 shares during the period. Rhumbline Advisers acquired a new stake in shares of Serve Robotics in the 2nd quarter valued at about $767,000. Finally, American Century Companies Inc. acquired a new stake in shares of Serve Robotics in the 2nd quarter valued at about $122,000.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SERV. Loop Capital set a $16.00 target price on Serve Robotics in a research report on Wednesday, December 31st. Guggenheim began coverage on Serve Robotics in a research report on Monday, April 20th. They set a "buy" rating and a $13.00 target price for the company. Freedom Capital raised Serve Robotics to a "strong-buy" rating in a research report on Wednesday, December 31st. Cantor Fitzgerald lowered their target price on Serve Robotics from $17.00 to $16.00 and set an "overweight" rating for the company in a research report on Tuesday, March 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Serve Robotics in a research report on Friday, March 27th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, Serve Robotics has an average rating of "Buy" and a consensus price target of $17.67.

About Serve Robotics

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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