Shares of Serve Robotics Inc (NASDAQ:SERV) fell by more than 4% in premarket hours on Wednesday after an 18.7% fall on Tuesday as the delivery robots maker's CEO sold 46,425 of common stock in 2025. However, technical analysis indicates a strong bullish uptrend for the stock.
What Happened: Since its debut on the Nasdaq in April, the Serve Robotics stock has gained over 490%, according to Benzinga Pro.
The company's recent Form-4 filing reveals that CEO Ali Kashani sold 37,500 shares on Monday, Jan. 6 for $793,550 and 1,425 shares on Tuesday, Jan. 7 for $27,828.26.
Kashani now holds 3.24 million company shares, after the multiple sell orders in 2025, as per Benzinga Pro. He held 3.289 million shares at the beginning of the year.
| Dates | Shares Sold | Price Per Share | Shares Held After Sale |
| 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) |
This comes as the company also announced an $80 million registered direct offering on Tuesday. The transaction involves the sale of 4,210,525 shares of common stock. Net proceeds from the offering will support general corporate purposes, including working capital. Northland Capital Markets is the exclusive placement agent for the deal.
Why It Matters: Despite Tuesday's steep fall, from a technical perspective, the analysis of daily moving averages shows strong support for the stock.
Serve's shares closed at $18.61 apiece on Tuesday. This was above its eight, 20, 50, and 200-day moving averages, suggesting a bullish uptrend. The 20-day moving average price was $15.52 apiece, whereas the 50-day average stood at $11.87. The 200-day moving average was at $7.67.
A daily moving average, or DMA, is the average price of a stock over a set period of time.
On the other hand, the relative strength index of 60 suggested that the stock could be moderately overbought but still in the neutral zone.
Price Action: The company shares rose 329.04% in 2024 after listing in April, outperforming the Invesco QQQ Trust ETF (NASDAQ:QQQ), which rose by 23.29% in 2024.
According to Benzinga Pro data, SERV has a consensus price target of $14.67 per share, with a 'buy' rating, based on the ratings of three analysts. The highest price target out of all the analysts tracked by Benzinga is $16 apiece issued by Ladenburg Thalmann as of Oct. 28, 2024. The lowest target price is $12 per share issued by Seaport Global on Oct. 7, 2024.
The average price target between Ladenburg Thalmann, Northland Capital Markets, and Seaport Global implies a 22.97% downside for SERV.
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Photo courtesy: Serve Robotics
