Shares of Serve Robotics (NASDAQ: SERV) have been upgraded to a strong-buy rating by LADENBURG THALM/SH SH, according to a report published on November 12, 2023. This news comes as part of a broader trend, with several other analysts also taking a positive outlook on the company. Oppenheimer initiated coverage with an “outperform” rating and set a target price of $20.00, highlighting the stock’s potential for significant appreciation.
In addition, Citigroup reaffirmed its “outperform” rating, while Northland Securities provided a target price of $26.00. Cantor Fitzgerald maintained an “overweight” rating, and Singular Research upgraded the stock to a “moderate buy.” Overall, one analyst rates the stock as a Strong Buy, five have issued Buy ratings, one has given it a Hold rating, and one has assigned a Sell rating. Current consensus data from MarketBeat indicates a “Moderate Buy” rating and an average price target of $19.50.
Stock Performance and Financial Overview
On the trading day following the upgrades, shares of Serve Robotics opened at $10.26, representing a 1.4% increase. The company’s market capitalization stands at approximately $764.16 million with a 50-day moving average price of $11.85 and a 200-day moving average price of $11.51. Over the past year, the stock has fluctuated between a low of $4.66 and a high of $24.35.
Serve Robotics recently reported its quarterly earnings, revealing an earnings per share (EPS) of ($0.54), falling short of analysts’ expectations of ($0.37) by ($0.17). Revenue for the quarter was $0.69 million, aligning with consensus estimates. The company continues to face challenges, reflected in a negative return on equity of 38.52% and an exceptionally negative net margin of 4,121.58%. Analysts predict that Serve Robotics will experience an EPS of (-0.98) for the current year.
Insider Activity and Institutional Trading
In recent insider trading, CEO Ali Kashani sold 16,730 shares on December 11, 2023, at an average price of $11.87, totaling nearly $198,585.10. Following this transaction, Kashani retains ownership of approximately 3,374,862 shares, valued at around $40.06 million. Similarly, COO Touraj Parang sold 5,000 shares on December 12, 2023, for $65,350.00, reducing his holdings to 1,333,691 shares.
In the last quarter alone, insiders sold a total of 230,895 shares valued at $2.9 million, representing 5.50% of the company’s stock currently owned by insiders. This level of insider selling has raised concerns among investors, contributing to a reported drop in stock price of approximately 9.6%.
Institutional trading also reflects renewed interest in Serve Robotics. Notably, Vontobel Holding Ltd. increased its stake by 6.7% in the third quarter, now holding 22,427 shares valued at $261,000. Charles Schwab Investment Management Inc. and Creative Planning also raised their holdings, indicating a trend among institutional investors to bolster their positions in the company.
Overall, the recent analyst upgrades and insider activities indicate a complex landscape for Serve Robotics, balancing optimistic growth potential against the backdrop of insider selling and financial challenges. As the company continues to innovate in the field of autonomous delivery, investor sentiment may play a critical role in shaping its future trajectory.
