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In a recent transaction, Abraham Euan, Chief Hardware and Manufacturing Officer at Serve Robotics Inc. (NASDAQ:SERV), sold 660 shares of the company’s common stock, valued at approximately $6,075. The shares were sold at a price of $9.205 each, with the stock currently trading near $9.01. The transaction comes as SERV shares have declined roughly 25% in the past week and 64% over the last year. Following this sale, Euan retains ownership of 149,858 shares in the company, representing a stake in the $383 million market cap company.
According to the filing, the transaction was executed to satisfy tax withholding obligations related to the acquisition of shares through the settlement of vested restricted stock units (RSUs). With SERV’s next earnings report scheduled for March 6, InvestingPro subscribers can access 13 additional investment tips and comprehensive insider trading analysis to make more informed investment decisions.
In other recent news, Serve Robotics Inc. has been in the spotlight due to a series of notable developments. The company recently announced a registered direct offering, selling over 4.2 million shares to institutional investors, which is expected to raise approximately $80 million before fees. This capital is earmarked for general corporate purposes, including working capital, and the transaction is anticipated to close soon. Additionally, Serve Robotics has expanded its operations to the Miami metro area, partnering with Shake Shack (NYSE:SHAK) and Mister O1 Extraordinary Pizza to deploy its delivery robots in select neighborhoods.
However, the company has faced some challenges. Nvidia (NASDAQ:NVDA)’s recent 13F filing revealed that it no longer holds a stake in Serve Robotics, which has contributed to a decline in the company’s share price. Serve Robotics also attracted scrutiny following its acquisition of Vebu Inc., with short-seller Bonitas raising concerns about the transaction’s benefits to insiders. Furthermore, the company’s ambitious deployment targets and revenue projections have been questioned, as it has only 59 robots in operation compared to its goal of 2,000 by the end of 2025.
Serve Robotics’ largest investor, Uber (NYSE:UBER) Eats, has started engaging with competitors for sidewalk robot deliveries, raising questions about the company’s market position. The company’s partnership with Magna International (NYSE:MGA) has also seen a decline, with revenues falling over 95% as of the third quarter of 2024. These developments indicate a challenging landscape for Serve Robotics as it navigates the autonomous delivery market.
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