Serve Robotics (NASDAQ:SERV) Downgraded by Zacks Research to “Strong Sell”

Zacks Research lowered shares of Serve Robotics (NASDAQ:SERV) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning,Zacks reports.

SERV has been the topic of a number of other research reports. Freedom Capital raised shares of Serve Robotics from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 14th. Weiss Ratings raised Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 21st. Oppenheimer dropped their price objective on Serve Robotics from $20.00 to $7.00 and set an “outperform” rating on the stock in a research note on Friday, August 7th. Guggenheim dropped their price objective on Serve Robotics from $13.00 to $7.00 and set a “buy” rating on the stock in a research note on Monday, August 10th. Finally, Cantor Fitzgerald lowered Serve Robotics from an “overweight” rating to a “neutral” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $14.77.

Serve Robotics Stock Performance

Shares of NASDAQ SERV opened at $3.44 on Tuesday. The company’s 50 day moving average price is $4.65 and its 200-day moving average price is $6.50. Serve Robotics has a 52-week low of $3.42 and a 52-week high of $18.64. The company has a market capitalization of $298.28 million, a P/E ratio of -1.40 and a beta of 1.43.

Serve Robotics (NASDAQ:SERV) last posted 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). Serve Robotics had a negative return on equity of 55.34% and a negative net margin of 2,315.80%. The firm had revenue of $3.24 million for the quarter, compared to analyst estimates of $3.51 million. Analysts forecast that Serve Robotics will post -2.81 earnings per share for the current year.

Insider Transactions at Serve Robotics

In other news, CFO Brian Read sold 9,700 shares of Serve Robotics stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $4.80, for a total value of $46,560.00. Following the completion of the sale, the chief financial officer owned 276,002 shares in the company, valued at $1,324,809.60. The trade was a 3.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ali Kashani sold 45,158 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $4.56, for a total transaction of $205,920.48. Following the transaction, the chief executive officer owned 3,232,933 shares in the company, valued at $14,742,174.48. The trade was a 1.38% decrease in their position. 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. Insiders sold a total of 124,220 shares of company stock valued at $585,554 in the last quarter. 5.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Serve Robotics

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. boosted its holdings in Serve Robotics by 24.5% in the second quarter. BlackRock Inc. now owns 6,040,854 shares of the company’s stock worth $39,749,000 after acquiring an additional 1,190,622 shares in the last quarter. State Street Corp increased its holdings in shares of Serve Robotics by 90.7% during the second quarter. State Street Corp now owns 2,456,658 shares of the company’s stock valued at $16,165,000 after acquiring an additional 1,168,714 shares in the last quarter. Legal & General Group Plc bought a new stake in shares of Serve Robotics during the second quarter valued at approximately $8,410,000. Grange Capital LLC bought a new stake in shares of Serve Robotics during the first quarter valued at approximately $2,426,000. Finally, Landscape Capital Management L.L.C. bought a new stake in shares of Serve Robotics during the second quarter valued at approximately $1,788,000.

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.