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 Thursday. This positive shift in outlook comes as multiple analysts express increasing confidence in the company’s potential for growth.
In addition to LADENBURG’s upgrade, Oppenheimer initiated coverage on Serve Robotics, issuing an “outperform” rating with a target price of **$20.00**. Citigroup also reaffirmed an “outperform” rating on October 13, while Northland Securities set a target price of **$26.00** on the same day. Cantor Fitzgerald maintained an “overweight” rating, and Singular Research raised the stock to a “moderate buy” on August 26. The consensus from analysts now stands at a “Moderate Buy,” with an average price target of **$19.50**.
Current Market Performance
As of Thursday, SERV shares opened at **$10.26**, reflecting a **1.4%** increase. The company has a market capitalization of **$764.16 million**, with a 50-day moving average price of **$11.85** and a 200-day moving average of **$11.51**. Over the past year, the stock has fluctuated between a low of **$4.66** and a high of **$24.35**.
Recent quarterly earnings results, released on November 12, showed that Serve Robotics reported an earnings per share (EPS) of **($0.54)**, missing the consensus estimate of **($0.37)** by **$0.17**. Revenue remained in line with expectations at **$0.69 million**. The company registered a negative return on equity of **38.52%** and a staggering negative net margin of **4,121.58%**. Analysts predict an EPS of **($0.98)** for the current year.
Insider Trading Activity
Recent insider trading has caught the attention of investors. CEO Ali Kashani sold **16,730 shares** on December 11 at an average price of **$11.87**, amounting to a total of **$198,585.10**. Following this transaction, Kashani retains **3,374,862 shares** valued at approximately **$40,059,611.94**, a **0.49%** decrease in ownership.
Similarly, COO Touraj Parang sold **5,000 shares** on December 12 for **$13.07** per share, totaling **$65,350.00**. Post-sale, Parang holds **1,333,691 shares** worth about **$17,431,341.37**, reflecting a **0.37%** decrease in ownership. Collectively, insiders have sold **230,895 shares** worth **$2,895,554** in the last quarter.
Institutional Interest
Hedge funds have been adjusting their positions 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. also raised its position by **13.8%**, acquiring an additional **1,545 shares** to reach **12,728 shares** valued at **$73,000**. Other firms, including Creative Planning and Phoenix Financial Ltd., have similarly expanded their holdings, indicating a growing institutional interest.
Recent analyst coverage has generated positive sentiment surrounding Serve Robotics, particularly as Oppenheimer’s initiation of coverage has been viewed favorably, reinforcing expectations for stock price appreciation. The increased analyst visibility and consensus upgrade to “Moderate Buy” may attract further interest from both institutional and retail investors.
Despite these positive developments, reports of insider selling have led to some market volatility, with the stock experiencing a notable drop of **9.6%** following the announcements. This fluctuation highlights the delicate balance between positive analyst ratings and concerns over insider transactions, which can influence market perceptions and investor confidence.
As Serve Robotics continues to navigate its growth trajectory in the autonomous delivery sector, analysts and investors alike will be closely monitoring future developments and performance metrics. The company’s innovative approach to last-mile logistics positions it uniquely within the market, but operational challenges and financial results will ultimately determine its success.
