Serve Robotics Inc. (NASDAQ:SERV) experienced a significant decline in its stock price, dropping by 9.6% during trading on Wednesday. The shares fell to a low of $9.52 before closing at $9.55. This downturn followed a wave of insider selling, with a total of 6,170,544 shares changing hands, marking a 24% decrease from the average session volume of 8,078,231 shares. The stock had previously closed at $10.57.
Insider trading played a pivotal role in this price shift. On December 15, Anthony Armenta, an insider at Serve Robotics, sold 5,003 shares at an average price of $11.96, resulting in a total transaction value of $59,835.88. Following this sale, Armenta retained 555,034 shares, valued at approximately $6,638,206.64, reflecting a 0.89% decrease in his holdings.
CEO Ali Kashani also contributed to the insider selling trend by offloading 16,730 shares on December 11 at an average price of $11.87, totaling $198,585.10. After this transaction, Kashani holds 3,374,862 shares, worth about $40,059,611.94, representing a 0.49% reduction in his ownership. Additionally, COO Touraj Parang sold 5,000 shares on December 12, garnering $65,350.00 from the sale, which brought his total holdings down by 0.37% to 1,333,691 shares valued at $17,431,341.37.
Analysts’ Ratings and Market Response
Several brokerage firms have recently updated their ratings for Serve Robotics. Weiss Ratings maintained a “sell (D-)” rating on the company’s shares. Conversely, Citigroup reaffirmed an “outperform” rating on October 13. Wedbush initiated coverage, assigning an “outperform” rating with a target price of $15.00. Singular Research upgraded its rating to a “moderate buy” on August 26, and Cantor Fitzgerald reiterated an “overweight” rating on November 17. Currently, four analysts rate the stock as a buy, while one analyst recommends holding and another suggests selling. According to data from MarketBeat, Serve Robotics holds an average rating of “Moderate Buy” and a consensus price target of $19.33.
The company has a market capitalization of $711.28 million, a price-to-earnings (P/E) ratio of -6.41, and a beta of -0.14. The firm’s 50-day moving average stands at $12.18, while the 200-day moving average is $11.55. In its most recent earnings report on November 12, Serve Robotics posted earnings per share (EPS) of ($0.54), falling short of analysts’ expectations of ($0.37) by ($0.17). The company reported revenue of $0.69 million, aligning with analyst estimates but reflecting a staggering negative net margin of 4,121.58% and a negative return on equity of 38.52%.
Institutional Investment Trends
Recent activity among institutional investors indicates a mix of increasing and decreasing stakes in Serve Robotics. Vontobel Holding Ltd. raised its position by 6.7%, now owning 22,427 shares valued at $261,000. Charles Schwab Investment Management Inc. increased its holdings by 13.8%, now possessing 12,728 shares worth $73,000. Creative Planning boosted its stake by 14.5% and now holds 14,800 shares valued at $172,000. Phoenix Financial Ltd. and Thoroughbred Financial Services LLC also expanded their positions, with increases of 13.3% and 9.0%, respectively.
Founded to design and develop low-emission delivery robots, Serve Robotics Inc. has seen its name change from Patricia Acquisition Corp. in July 2023. As the company continues to navigate market fluctuations and insider trading impacts, investors will be closely monitoring its stock performance and future earnings reports.
