Premarket Performance: Shares of Serve Robotics Inc SERV fell over 4% in premarket trading on Wednesday, following an 18.7% decline on Tuesday. This drop comes after reports that the company’s CEO sold 46,425 shares of common stock.
Stock Surge Since IPO: Since its listing on Nasdaq in April, Serve Robotics’s stock has skyrocketed over 490%, according to data from Benzinga Pro.
CEO Ali Kashani recently disclosed in a Form-4 filing that he sold 37,500 shares for $793,550 on January 6 and an additional 1,425 shares for $27,828.26 on January 7. Following these transactions, Kashani retains 3.24 million shares of the company, a slight decline from 3.289 million shares at the start of the year.
| Transaction Dates | Shares Sold | Price Per Share | Remaining Shares |
| 01/03/2025 | 2,500 | $16.24 | 3,273,490 |
| 01/03/2025 | 5,000 | $17.72 | 3,268,490 |
| 01/06/2025 | 32,500 | $20.90 | 3,235,990 |
| 01/06/2025 | 5,000 | $22.84 | 3,230,990 |
| 01/07/2025 | 1,425 | $19.53 | 3,229,565 |
| 16,070 (Held By Spouse) |
New Fundraising Efforts: In conjunction with these sales, the company announced an $80 million registered direct offering on Tuesday, involving the sale of 4,210,525 shares of common stock. The funds raised will primarily be used for general corporate purposes, including working capital, with Northland Capital Markets acting as the exclusive placement agent.
Technical Analysis Shows Promise: Despite Tuesday’s sharp drop, technical analysis indicates a robust support level for the stock. On Tuesday, Serve’s shares closed at $18.61, above its eight, 20, 50, and 200-day moving averages, which bodes well for a potential recovery. The 20-day average is $15.52, while the 50-day average stands at $11.87, and the 200-day average is at $7.67.
A daily moving average (DMA) represents the average price of a stock over a specified timeframe, helping investors to gauge trends.
The relative strength index (RSI) at 60 suggests that while the stock may be somewhat overbought, it remains in neutral territory.
Comparative Performance: In 2024, shares of Serve Robotics increased by 329.04%, significantly outperforming the Invesco QQQ Trust ETF QQQ, which only rose 23.29% during the same period.
Benzinga Pro reports that SERV currently has a consensus price target of $14.67 per share, indicating a ‘buy’ rating from three analysts. The highest price target stands at $16 from Ladenburg Thalmann as of October 28, 2024, while Seaport Global issued the lowest target at $12 on October 7, 2024. The average target price implies a potential downside of 22.97% for SERV.
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Photo courtesy: Serve Robotics
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