Serve Robotics (NASDAQ:SERV) Rating Lowered 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 research report issued to clients and investors on Tuesday, Zacks reports.

Several other equities analysts also recently issued reports on SERV. Weiss Ratings raised shares of Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, July 21st. Guggenheim reduced 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 raised shares of Serve Robotics from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 14th. Oppenheimer decreased their price objective on shares of Serve Robotics from $20.00 to $7.00 and set an “outperform” rating on the stock in a research note on Friday, August 7th. Finally, Cantor Fitzgerald lowered shares of Serve Robotics from an “overweight” rating to a “neutral” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $14.77.

Serve Robotics Stock Performance

Shares of NASDAQ SERV opened at $3.44 on Tuesday. The stock has a market cap of $298.28 million, a PE ratio of -1.40 and a beta of 1.43. The business has a fifty day moving average of $4.65 and a two-hundred day moving average of $6.50. Serve Robotics has a 52-week low of $3.42 and a 52-week high of $18.64.

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

Insider Buying and Selling at Serve Robotics

In other Serve Robotics news, COO Touraj Parang sold 37,993 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $4.55, for a total value of $172,868.15. Following the transaction, the chief operating officer owned 1,260,251 shares of the company’s stock, valued at approximately $5,734,142.05. The trade was a 2.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.24, for a total value of $132,257.60. Following the sale, the chief financial officer owned 291,831 shares in the company, valued at $1,529,194.44. The trade was a 7.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 124,220 shares of company stock worth $585,554. 5.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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