Serve Robotics Inc. (NASDAQ: SERV) experienced a significant decline in its stock price, dropping by 9.6% during trading on December 11, 2023, primarily due to insider selling activities. The stock reached a low of $9.52 before closing at $9.55, a notable decrease from its previous close of $10.57. A total of 6,170,544 shares changed hands, reflecting a 24% decrease from the average session volume of 8,078,231 shares.
The decline in stock value follows a series of sales by company insiders. Notably, on December 15, Anthony Armenta, an insider, sold 5,003 shares at an average price of $11.96, amounting to $59,835.88. Post-transaction, Armenta holds 555,034 shares, valued at approximately $6,638,206.64, reflecting a 0.89% decrease in his ownership.
In a related transaction, Ali Kashani, the CEO of Serve Robotics, sold 16,730 shares on December 11 for an average price of $11.87, totaling $198,585.10. After this sale, Kashani retained 3,374,862 shares, valued at around $40,059,611.94, representing a 0.49% reduction in his stake. The company’s Chief Operating Officer, Touraj Parang, also sold 5,000 shares at an average price of $13.07 on December 12, yielding $65,350.00 and a 0.37% decrease in his position.
Analysts’ Ratings and Market Performance
Several brokerages have recently issued ratings concerning Serve Robotics. Weiss Ratings reaffirmed a “sell (D-)” rating, while Citigroup maintained an “outperform” rating. Wedbush began coverage with an “outperform” rating and a target price of $15.00. Singular Research upgraded the stock to a “moderate buy” rating, and Cantor Fitzgerald restated an “overweight” rating. Currently, four analysts rate the stock as a Buy, one as Hold, and one as Sell, leading to an average rating of “Moderate Buy” with a consensus price target of $19.33, according to data from MarketBeat.
The company’s market capitalization stands at $711.28 million, with a price-to-earnings (P/E) ratio of -6.41 and a beta of -0.14. Serve Robotics has a 50-day moving average of $12.18 and a 200-day moving average of $11.55.
Recent Financial Performance
Serve Robotics reported its latest earnings results on November 12, 2023, posting an earnings per share (EPS) of ($0.54), which fell short of analysts’ expectations of ($0.37) by ($0.17). The company reported a negative net margin of 4,121.58% and a negative return on equity of 38.52%. Revenue for the quarter stood at $0.69 million, aligning with analyst estimates.
Looking ahead, analysts predict that Serve Robotics will post an EPS of ($0.98) for the current year.
Institutional investors have shown varied interest in Serve Robotics recently. Vontobel Holding Ltd. increased its stake by 6.7% during the third quarter, now holding 22,427 shares valued at $261,000. Charles Schwab Investment Management Inc. raised its holdings by 13.8%, owning 12,728 shares worth $73,000. Other firms, including Creative Planning and Phoenix Financial Ltd., also boosted their stakes by 14.5% and 13.3%, respectively.
Serve Robotics, established to design and operate low-emission delivery robots, was formerly known as Patricia Acquisition Corp. The company rebranded in July 2023 to reflect its focus on self-driving technology in public spaces.
