Serve Robotics CEO Ali Kashani sells shares worth $134,378

Published 19/12/2024, 22:18
Serve Robotics CEO Ali Kashani sells shares worth $134,378

Serve Robotics Inc. (NASDAQ:SERV) Chief Executive Officer Ali Kashani has sold shares of the company totaling $134,378, according to a recent SEC filing. The transactions, conducted on December 17 and 18, involved the sale of 8,508 shares at prices ranging from $15.40 to $16.48 per share. The sale comes amid the company's notable market performance, with InvestingPro data showing a remarkable 589% surge over the past six months, despite current trading at $13.36.

The sales were made under a Rule 10b5-1 plan, which allows executives to set up a trading plan for selling stocks they own. This plan was adopted by Kashani on August 19, 2024. Following these transactions, Kashani retains direct ownership of 3,298,490 shares. Additionally, 16,070 shares are held indirectly by his spouse. According to InvestingPro, the company, currently valued at $621.79M, exhibits high price volatility and holds more cash than debt on its balance sheet.

These transactions also included a sale of 1,008 shares executed to cover tax withholding obligations related to the acquisition of shares through the settlement of vested restricted stock units. Want deeper insights? InvestingPro offers 12 additional tips and comprehensive financial metrics for Serve Robotics.

In other recent news, Serve Robotics has faced criticism after acquiring Vebu Inc., an automation incubator with a history of unsuccessful prototypes. The acquisition has sparked concerns due to Vebu's focus on a commercial robot for avocado processing, rather than delivery. Short-seller Bonitas has suggested that Serve's director, James Buckly Jordan, has a history of raising funds for robotics ventures that fail to gain commercial traction.

Serve Robotics has also made headlines by announcing the appointment of Anthony Armenta as its new Chief Software (ETR:SOWGn) and Data Officer. Armenta will oversee the development and enhancement of Serve's software and artificial intelligence capabilities, focusing on improving the performance and reliability of Serve's autonomous delivery robots.

Serve Robotics received a Buy rating from both Ladenburg Thalmann and Seaport Global Securities, indicating positive expectations for the company's future performance. This is linked to the company's ambitious expansion plan to deploy an additional 2,000 robots in 2025, which is expected to generate revenues between $60 and $80 million.

In other developments, Serve Robotics announced the launch of its third-generation delivery robot, designed to enhance delivery efficiency and safety while reducing manufacturing costs. The new robots, set to enter service in 2025, are engineered to carry more goods and perform deliveries at higher speeds and over longer distances.

Lastly, Serve Robotics has solidified its partnership with Magna International (NYSE:MGA) through an exclusive contract manufacturing agreement. Despite these advancements, industry experts remain skeptical about Serve's ability to meet its ambitious goals given the current challenges it faces.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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