WINTON GROUP Ltd Invests $5.22 Million in ServiceTitan Inc. $TTAN

Key Points

• WINTON GROUP Ltd acquired 73,800 ServiceTitan shares worth approximately $5.22 million, representing about 0.08% of the company.
• ServiceTitan exceeded quarterly expectations, reporting revenue of $292.76 million, up 20.9% year over year, and EPS of $0.40 versus the $0.35 consensus estimate. However, the stock fell to $56.01 amid concerns about its outlook and the transition to its Max product.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $96.38, although several firms recently lowered their targets. Company insiders also sold more than 514,000 shares worth approximately $39.2 million during the quarter.

WINTON GROUP Ltd bought a new stake in ServiceTitan Inc. (NASDAQ:TTAN - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 73,800 shares of the company's stock, valued at approximately $5,218,000. WINTON GROUP Ltd owned approximately 0.08% of ServiceTitan as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. boosted its position in ServiceTitan by 1,005.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company's stock worth $46,000 after purchasing an additional 392 shares during the last quarter. State of Wyoming bought a new stake in shares of ServiceTitan during the 1st quarter worth $48,000. Sunbelt Securities Inc. raised its stake in shares of ServiceTitan by 391.0% during the 4th quarter. Sunbelt Securities Inc. now owns 491 shares of the company's stock worth $52,000 after purchasing an additional 391 shares during the period. Parallel Advisors LLC boosted its holdings in shares of ServiceTitan by 161.7% in the 3rd quarter. Parallel Advisors LLC now owns 526 shares of the company's stock worth $53,000 after buying an additional 325 shares during the last quarter. Finally, Elevation Wealth Partners LLC boosted its holdings in shares of ServiceTitan by 20.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 863 shares of the company's stock worth $61,000 after buying an additional 144 shares during the last quarter.

ServiceTitan Stock Down 1.9%

NASDAQ TTAN opened at $56.01 on Friday. The firm has a market cap of $5.34 billion, a P/E ratio of -41.18 and a beta of 0.11. The company's 50 day moving average is $83.88 and its 200-day moving average is $72.55. ServiceTitan Inc. has a 12-month low of $54.17 and a 12-month high of $119.60.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. ServiceTitan had a negative net margin of 12.12% and a negative return on equity of 5.65%. The company had revenue of $292.76 million during the quarter, compared to the consensus estimate of $285.89 million. During the same period last year, the firm earned $0.33 EPS. ServiceTitan's revenue for the quarter was up 20.9% on a year-over-year basis. Equities analysts expect that ServiceTitan Inc. will post -0.54 EPS for the current year.

Analyst Ratings Changes

A number of research firms recently issued reports on TTAN. Morgan Stanley decreased their price objective on shares of ServiceTitan from $124.00 to $92.00 and set an "overweight" rating for the company in a report on Wednesday. TD Cowen reduced their target price on shares of ServiceTitan from $125.00 to $100.00 and set a "buy" rating for the company in a research report on Wednesday. BMO Capital Markets decreased their price target on shares of ServiceTitan from $103.00 to $90.00 and set an "outperform" rating for the company in a research note on Wednesday. Evercore set a $90.00 price target on shares of ServiceTitan in a report on Wednesday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $100.00 price objective on shares of ServiceTitan in a research note on Wednesday. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $96.38.

Insider Activity

In other news, CEO Ara Mahdessian sold 38,287 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $84.89, for a total value of $3,250,183.43. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Sherry sold 9,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $90.83, for a total value of $817,470.00. Following the completion of the transaction, the chief financial officer directly owned 386,757 shares of the company's stock, valued at $35,129,138.31. The trade was a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 514,837 shares of company stock valued at $39,203,222. 39.89% of the stock is currently owned by corporate insiders.

Key Stories Impacting ServiceTitan

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal Q2 revenue of $292.8 million, up 21% year over year, and earnings of $0.40 per share versus the $0.35 consensus estimate. Record non-GAAP free cash flow of $50.5 million and a 15.2% non-GAAP operating margin also highlighted improving profitability. ServiceTitan Bets on Max Despite Near-Term Headwinds
• Positive Sentiment: Several analysts retained bullish ratings following the selloff. BTIG reaffirmed a Buy rating with a $110 target, while Piper Sandler, KeyCorp, Stifel, BMO Capital Markets and Robert W. Baird maintained positive ratings despite reducing their targets. These targets imply substantial potential upside if growth and the Max strategy gain traction.
• Neutral Sentiment: ServiceTitan’s Max product is gaining adoption and is viewed by some analysts as a potential long-term growth driver, but investors are weighing that opportunity against the transition’s effect on near-term revenue and services revenue. ServiceTitan Q2 Was No Disaster, But Not Enough For an Upgrade
• Neutral Sentiment: Reported short-interest data showed zero shares and a zero-day short-interest ratio, but the figures also contained an “NaN” change indicator, making the data unreliable and unlikely to provide a meaningful trading signal.
• Negative Sentiment: The stock fell even after the earnings beat because the outlook was viewed as underwhelming. ServiceTitan indicated that the shift toward Max could reduce professional-services revenue by approximately $2 million over the remainder of the fiscal year, while reports said the third-quarter revenue forecast fell short of expectations. Why ServiceTitan Stock Is Diving After Earnings Beat
• Negative Sentiment: Citigroup cut its price target to $76 from $83 and kept a Neutral rating. Other firms also lowered targets, signaling reduced near-term expectations even where Buy, Outperform or Overweight ratings were maintained.
• Negative Sentiment: Holzer & Holzer and the Law Offices of Frank R. Cruz announced investigations into potential securities-law violations following the earnings disclosure and the subsequent share-price decline. The investigations are allegations and do not establish wrongdoing. TTAN Investor Alert

ServiceTitan Profile

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.

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