ServiceTitan Inc. (NASDAQ:TTAN) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• ServiceTitan has a “Moderate Buy” consensus rating: Fourteen of 17 analysts rate the stock a buy, while two recommend holding and one recommends selling. The average 12-month price target is $96.38, although several brokerages recently lowered their targets.
• Quarterly results exceeded expectations, with revenue rising 20.9% year over year to $292.76 million and EPS reaching $0.40 versus the $0.35 consensus estimate. Expansion into roofing software and the Max AI platform are viewed as potential growth catalysts.
• ServiceTitan faces increased risk and weak share performance: The stock opened at $61.56, well below its 52-week high of $111.36, while law firms are investigating potential securities-fraud claims related to Max AI and expansion plans. Recent insider sales were reportedly made primarily to cover tax obligations on vested equity awards.

Shares of ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report) have been given a consensus rating of "Moderate Buy" by the seventeen brokerages that are currently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and fourteen have given a buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $96.3750.

Several research analysts have commented on TTAN shares. Stifel Nicolaus cut their target price on ServiceTitan from $125.00 to $100.00 and set a "buy" rating for the company in a research note on Wednesday, September 9th. Piper Sandler decreased their price target on ServiceTitan from $115.00 to $110.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 9th. Truist Financial reissued a "buy" rating and issued a $100.00 price target (down from $110.00) on shares of ServiceTitan in a report on Wednesday, September 9th. Robert W. Baird cut their price objective on shares of ServiceTitan from $101.00 to $85.00 and set an "outperform" rating for the company in a research report on Wednesday, September 9th. Finally, KeyCorp reduced their price objective on shares of ServiceTitan from $120.00 to $110.00 and set an "overweight" rating for the company in a research note on Wednesday, September 9th.

ServiceTitan News Roundup

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan is partnering to expand further into roofing software, broadening its addressable market beyond HVAC, plumbing and other contractor trades. The move could support adoption of its platform and strengthen the company’s long-term growth prospects. ServiceTitan Partners to Push Deeper Into Roofing Software
• Positive Sentiment: The company’s latest quarterly results showed revenue growth of 20.9% year over year, while earnings and revenue exceeded analyst expectations. Its Max AI platform remains a potential catalyst if it improves contractor productivity and drives broader customer adoption.
• Neutral Sentiment: CEO Ara Mahdessian, President Vahe Kuzoyan, CFO David Sherry and CAO Michele O’Connor sold shares at $57.07. The filings state the transactions were made to cover tax-withholding obligations on vested equity awards, reducing the signal that the sales reflected outright negative views. The CFO and CAO retained substantial positions.
• Negative Sentiment: Pomerantz LLP has opened an investigation into potential claims on behalf of ServiceTitan investors, adding to an ongoing securities-fraud investigation by Bleichmar Fonti & Auld. The inquiries reportedly focus on statements about the Max AI platform and plans to expand into new trades. The announcements do not establish wrongdoing, but they raise potential legal costs, regulatory risk and reputational damage. Pomerantz Investor Alert BFA Law Securities Fraud Investigation

ServiceTitan Price Performance

Shares of TTAN stock opened at $61.56 on Wednesday. The stock has a market capitalization of $5.94 billion, a price-to-earnings ratio of -45.26 and a beta of 0.11. The company's fifty day simple moving average is $80.42 and its two-hundred day simple moving average is $71.79. ServiceTitan has a 1 year low of $53.00 and a 1 year high of $111.36.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. ServiceTitan had a negative return on equity of 5.65% and a negative net margin of 12.12%.The firm had revenue of $292.76 million during the quarter, compared to analyst estimates of $285.89 million. During the same period last year, the company earned $0.33 earnings per share. The business's revenue for the quarter was up 20.9% on a year-over-year basis. Equities research analysts anticipate that ServiceTitan will post -0.53 EPS for the current year.

Insider Activity

In other news, CFO David Sherry sold 23,246 shares of the business's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $57.07, for a total transaction of $1,326,649.22. Following the completion of the transaction, the chief financial officer directly owned 363,511 shares in the company, valued at $20,745,572.77. The trade was a 6.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ara Mahdessian sold 3,148 shares of the company's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $57.07, for a total transaction of $179,656.36. Following the completion of the transaction, the chief executive officer directly owned 2 shares in the company, valued at approximately $114.14. The trade was a 99.94% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 320,153 shares of company stock valued at $26,544,329. 39.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceTitan

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TTAN. Norges Bank purchased a new stake in ServiceTitan in the fourth quarter valued at approximately $112,678,000. Madison Asset Management LLC purchased a new position in ServiceTitan in the 2nd quarter worth approximately $56,118,000. Artisan Partners Limited Partnership grew its stake in ServiceTitan by 47.3% in the 4th quarter. Artisan Partners Limited Partnership now owns 1,617,353 shares of the company's stock worth $172,248,000 after buying an additional 519,024 shares in the last quarter. Franklin Resources Inc. grew its stake in ServiceTitan by 33.8% in the 4th quarter. Franklin Resources Inc. now owns 2,014,025 shares of the company's stock worth $214,494,000 after buying an additional 508,848 shares in the last quarter. Finally, Natixis Advisors LLC bought a new position in shares of ServiceTitan in the 4th quarter worth $39,174,000.

About ServiceTitan

ServiceTitan, Inc develops cloud-based software designed to help residential and commercial contractors manage and grow their businesses. Its platform supports trades such as heating, ventilation and air conditioning, plumbing, electrical, roofing, and other field-service industries.

The company's products and services cover key business functions, including customer relationship management, lead generation, scheduling and dispatching, estimates, job management, invoicing, payments, financing, payroll, and business analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.