Serve Robotics (NASDAQ:SERV) Cut to Strong Sell at Zacks Research

Serve Robotics (NASDAQ:SERV) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks reports.

Several other research analysts also recently weighed in on SERV. Weiss Ratings upgraded Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 21st. Guggenheim lowered their price target on shares of Serve Robotics from $13.00 to $7.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. Freedom Capital upgraded shares of Serve Robotics from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 14th. Cantor Fitzgerald downgraded shares of Serve Robotics from an “overweight” rating to a “neutral” rating in a report on Friday, August 7th. Finally, Oppenheimer reduced their price objective on shares of Serve Robotics from $20.00 to $7.00 and set an “outperform” rating for the company in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $14.77.

Serve Robotics Stock Down 9.2%

Shares of NASDAQ:SERV opened at $3.44 on Tuesday. Serve Robotics has a twelve month low of $3.42 and a twelve month high of $18.64. The stock’s 50 day moving average is $4.65 and its 200-day moving average is $6.50. The firm has a market capitalization of $298.28 million, a price-to-earnings ratio of -1.40 and a beta of 1.43.

Serve Robotics (NASDAQ:SERV) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share for the quarter, missing the consensus estimate of ($0.69) by ($0.11). The company had revenue of $3.24 million for the quarter, compared to the consensus estimate of $3.51 million. Serve Robotics had a negative net margin of 2,315.80% and a negative return on equity of 55.34%. Equities research analysts anticipate that Serve Robotics will post -2.81 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Touraj Parang sold 37,993 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $4.55, for a total transaction of $172,868.15. Following the sale, the chief operating officer owned 1,260,251 shares of the company’s stock, valued at approximately $5,734,142.05. This represents a 2.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brian Read sold 25,240 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.24, for a total transaction of $132,257.60. Following the completion of the transaction, the chief financial officer directly owned 291,831 shares of the company’s stock, valued at approximately $1,529,194.44. The trade was a 7.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 124,220 shares of company stock worth $585,554. 5.00% of the stock is owned by company insiders.

Institutional Trading of Serve Robotics

Several institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its holdings in shares of Serve Robotics by 90.7% in the 2nd quarter. State Street Corp now owns 2,456,658 shares of the company’s stock worth $16,165,000 after purchasing an additional 1,168,714 shares in the last quarter. WINTON GROUP Ltd purchased a new position in shares of Serve Robotics during the 2nd quarter valued at about $89,000. Engineers Gate Manager LP bought a new stake in Serve Robotics in the 2nd quarter worth approximately $214,000. Squarepoint Ops LLC lifted its position in Serve Robotics by 237.3% in the 2nd quarter. Squarepoint Ops LLC now owns 100,903 shares of the company’s stock worth $664,000 after buying an additional 70,992 shares during the last quarter. Finally, HighTower Advisors LLC boosted its stake in Serve Robotics by 81.5% in the second quarter. HighTower Advisors LLC now owns 18,176 shares of the company’s stock worth $120,000 after buying an additional 8,160 shares in the last quarter.

Serve Robotics News Roundup

Here are the key news stories impacting Serve Robotics this week:

• Positive Sentiment: Northland raised its FY2028 EPS forecast modestly to a loss of $2.66 from a loss of $2.72, suggesting some improvement in longer-term expectations.
• Neutral Sentiment: Northland projected continued losses across the forecast period, including EPS of negative $0.88 for Q3 2026, negative $0.89 for Q4 2026, negative $0.80 for Q1 2027, negative $0.81 for Q2 2027, negative $0.78 for Q3 2027 and negative $0.75 for Q4 2027.
• Negative Sentiment: FY2026 EPS estimates were cut to a loss of $3.22 from $2.82, while FY2027 estimates were reduced to a loss of $3.14 from $2.71. The deeper projected losses are the most significant factor weighing on investor sentiment.
• Negative Sentiment: Quarterly estimates were lowered across the near- and medium-term forecast: Q3 2026 to negative $0.88 from negative $0.72, Q4 2026 to negative $0.89 from negative $0.65, Q1 2027 to negative $0.80 from negative $0.66, Q2 2027 to negative $0.81 from negative $0.66, Q3 2027 to negative $0.78 from negative $0.69 and Q4 2027 to negative $0.75 from negative $0.70.
• Negative Sentiment: The revisions reinforce concerns that Serve Robotics remains far from profitability. The company previously reported a quarterly loss that exceeded analyst expectations, while revenue also came in below forecasts.

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous, sidewalk-based delivery robots designed to transport food, groceries and other goods over short distances. Its robots use cameras, sensors, mapping technology and artificial intelligence to navigate urban environments, interact with pedestrians and complete deliveries with limited human assistance.

The company’s delivery platform is intended to support restaurants, merchants and delivery providers by offering an additional fulfillment option for local orders.