Serve Robotics Sees Unusually High Options Volume (NASDAQ:SERV)

Key Points

• Serve Robotics Inc. has seen a significant increase in call options trading, with 40,579 options purchased, marking a 212% rise compared to average volumes.
• Recent analyst reports maintain a positive outlook on the stock, with a consensus rating of “Buy” and an average price target of $17.75.
• Despite the bullish sentiment, Serve Robotics reported an earnings miss in its latest quarter, with a loss of ($0.36) EPS against expected estimates of ($0.23).

Serve Robotics Inc. (NASDAQ:SERV - Get Free Report) saw unusually large options trading activity on Friday. Investors purchased 40,579 call options on the company. This represents an increase of approximately 212% compared to the average volume of 12,995 call options.

Serve Robotics Trading Down 2.6%

Serve Robotics stock traded down $0.32 during midday trading on Tuesday, hitting $11.89. The stock had a trading volume of 4,489,872 shares, compared to its average volume of 7,180,188. The firm's fifty day moving average is $10.65 and its two-hundred day moving average is $9.25. The company has a market capitalization of $712.09 million, a PE ratio of -10.34 and a beta of -0.16. Serve Robotics has a 52-week low of $4.66 and a 52-week high of $24.35.

Serve Robotics (NASDAQ:SERV - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate 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 36.47% and a negative net margin of 3,726.00%. As a group, equities research analysts predict that Serve Robotics will post -0.98 earnings per share for the current fiscal year.

Analyst Ratings Changes

SERV has been the topic of a number of analyst reports. Cantor Fitzgerald initiated coverage on shares of Serve Robotics in a research note on Thursday, May 22nd. They issued an "overweight" rating on the stock. Wedbush initiated coverage on shares of Serve Robotics in a research note on Wednesday, August 27th. They issued an "outperform" rating and a $15.00 price target on the stock. Seaport Res Ptn cut shares of Serve Robotics from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 11th. Finally, Singular Research raised Serve Robotics to a "moderate buy" rating in a research report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Buy" and an average price target of $17.75.

Insider Buying and Selling

In related news, insider Euan Abraham sold 12,603 shares of the company's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $10.60, for a total value of $133,591.80. Following the transaction, the insider owned 260,452 shares in the company, valued at $2,760,791.20. The trade was a 4.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David Michael Goldberg sold 10,700 shares of the company's stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $10.63, for a total transaction of $113,741.00. Following the completion of the transaction, the director owned 50,725 shares in the company, valued at approximately $539,206.75. The trade was a 17.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 293,625 shares of company stock worth $3,048,817 over the last quarter. 21.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Serve Robotics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SERV. Northern Trust Corp increased its holdings in Serve Robotics by 178.0% in the 4th quarter. Northern Trust Corp now owns 31,633 shares of the company's stock worth $427,000 after acquiring an additional 20,253 shares in the last quarter. Jefferies Financial Group Inc. grew its holdings in Serve Robotics by 30.3% during the 4th quarter. Jefferies Financial Group Inc. now owns 17,200 shares of the company's stock valued at $232,000 after buying an additional 4,000 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Serve Robotics during the fourth quarter valued at approximately $1,279,000. OMERS ADMINISTRATION Corp purchased a new position in shares of Serve Robotics in the fourth quarter worth $431,000. Finally, Man Group plc bought a new position in shares of Serve Robotics during the fourth quarter worth $467,000.

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.