Stock Traders Purchase High Volume of Serve Robotics Call Options (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) was the target of some unusual options trading activity on Friday. Stock traders purchased 40,579 call options on the stock. This represents an increase of approximately 212% compared to the average volume of 12,995 call options.

Analyst Ratings Changes

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

Serve Robotics Trading Up 8.0%

Shares of SERV stock traded up $0.91 during mid-day trading on Friday, reaching $12.31. The stock had a trading volume of 10,301,447 shares, compared to its average volume of 7,129,563. The stock's 50-day moving average price is $10.58 and its two-hundred day moving average price is $9.21. Serve Robotics has a 52-week low of $4.66 and a 52-week high of $24.35. The firm has a market capitalization of $737.39 million, a PE ratio of -10.67 and a beta of -0.19.

Serve Robotics (NASDAQ:SERV - Get Free Report) last released its quarterly earnings data 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). Serve Robotics had a negative net margin of 3,726.00% and a negative return on equity of 36.47%. The firm had revenue of $0.64 million during the quarter, compared to analysts' expectations of $0.63 million. On average, equities research analysts forecast that Serve Robotics will post -0.98 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Touraj Parang sold 53,690 shares of the business's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $10.35, for a total transaction of $555,691.50. Following the completion of the sale, the chief operating officer directly owned 1,365,416 shares of the company's stock, valued at $14,132,055.60. The trade was a 3.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Brian Read sold 10,216 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $9.82, for a total transaction of $100,321.12. Following the sale, the chief financial officer directly owned 373,263 shares of the company's stock, valued at approximately $3,665,442.66. The trade was a 2.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 293,625 shares of company stock valued at $3,048,817 over the last quarter. Company insiders own 5.50% of the company's stock.

Hedge Funds Weigh In On Serve Robotics

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

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