Serve Robotics Inc (NASDAQ: SERV) is ripping higher on Wednesday despite regulatory filings that confirmed CFO Brian Reed has been selling company shares over the past three months.
Most recently, the chief of finance has unloaded 10,216 SERV shares for roughly $100K on August 25th – which was on top of another 11,000 he’s already sold since late May.
Still, Serve Robotics’ stock has been in an exciting uptrend since early April. At the time of writing, it’s up 130% versus its year-to-date low after President Trump’s so-called “Liberation Day.”
Why CFO’s sales are negative for Serve Robotics stock
Reed’s consistent sales are concerning for SERV investors as they may signal a lack of confidence in the company’s near-term prospects.
Insider selling, especially when a senior executive is involved, often indicates internal challenges and valuation concerns. It may raise a red flag about the sustainability of the company’s growth rate as well.
The chief financial officer’s sale on August 25th comes after a massive surge in SERV stock price, suggesting he’s cashing out amid strength instead of holding for future upside.
This divergence between insider sentiment and market optimism could dampen the Serve Robotics rally in the weeks ahead – especially if investors begin questioning whether the outperformance is backed by fundamentals or just short-term momentum.
Wedbush still recommends buying SERV shares
Despite the aforementioned insider sales, however, Wedbush analyst Dan Ives remains bullish as ever on Serve Robotics shares.
Ives recommends sticking with SERV at current levels for its level 4 autonomous robots designed for last-mile delivery in urban environments.
In a research note today, the renowned analyst dubbed Serve Robotics as “uniquely positioned to capitalise on the accelerating adoption of AI-driven last-mile delivery vehicles.”
Ives initiated SERV shares today with an outperform rating a $15 price target, indicating potential upside of another 30% from current levels.
Serve Robotics is an autonomous delivery platform company that spun off from Postmates in 2021.
Serve Robotics has been expanding rapidly
Service Robotics has been committed to signing partnerships with merchant platforms and industry giants to accelerate deployments in 2025.
By the end of this year, the Nasdaq-listed firm wants to rollout at least 2,000 robots across multiple cities – signalling an aggressive growth trajectory. It’s teaming up with a long-list of restaurants and other US businesses to launch in new markets as well.
What’s also worth mentioning is that Wedbush is actually among the more cautious firms on SERV stock.
According to the Wall Street Journal, the consensus rating on the AI stock currently sits at “buy” with the mean target of $17, indicating potential upside of another 45% from here.
That said, Serve Robotics stock doesn’t pay a dividend and, therefore, is unattractive for income-focused investors.
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