Serve Robotics Inc ( SERV ) shares are trading lower by 15.5% to $19.35 during Tuesday’s session after the company announced an $80 million registered direct offering.

The transaction involves the sale of 4,210,525 shares of common stock and is set to close by January 7, pending customary conditions.

Net proceeds will support general corporate purposes, including working capital. Northland Capital Markets is the exclusive placement agent for the deal.

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Should I Sell My SERV Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Serve Robotics ( SERV ) have lost 8.44% year to date. This compares to the average annual return of -1.29%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Serve Robotics ( SERV ) stock currently has an RSI of 80.72, indicating overbought conditions.

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SERV has a 52-week high of $24.35 and a 52-week low of $1.77.