ServiceTitan (NASDAQ:TTAN) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• ServiceTitan shares saw unusually high trading volume, with approximately 3.67 million shares changing hands—115% above the prior session—and rose to about $57.60 from a $55.04 close.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $96.38, though several firms recently lowered their targets. Fourteen analysts rate the stock a Buy, two a Hold, and one a Sell.
• The company exceeded quarterly earnings and revenue estimates, reporting $0.40 in adjusted EPS and $292.76 million in revenue, up 20.9% year over year. However, ServiceTitan remains unprofitable, with a negative net margin, while insiders sold roughly $37.1 million in shares over the last quarter.

ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report) saw unusually-strong trading volume on Monday . Approximately 3,670,172 shares changed hands during mid-day trading, an increase of 115% from the previous session's volume of 1,709,698 shares.The stock last traded at $57.6030 and had previously closed at $55.04.

Analyst Ratings Changes

TTAN has been the topic of a number of analyst reports. Truist Financial reiterated a "buy" rating and set a $100.00 price objective (down from $110.00) on shares of ServiceTitan in a research report on Wednesday, September 9th. Wells Fargo & Company reduced their price target on ServiceTitan from $115.00 to $105.00 and set an "overweight" rating on the stock in a report on Wednesday, September 9th. Canaccord Genuity Group lowered their price target on shares of ServiceTitan from $105.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday, September 9th. Piper Sandler cut their price objective on shares of ServiceTitan from $115.00 to $110.00 and set an "overweight" rating for the company in a research report on Wednesday, September 9th. Finally, BMO Capital Markets reduced their target price on shares of ServiceTitan from $103.00 to $90.00 and set an "outperform" rating on the stock in a research note on Wednesday, September 9th. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, ServiceTitan presently has a consensus rating of "Moderate Buy" and an average price target of $96.38.

ServiceTitan Stock Performance

The stock has a market capitalization of $5.43 billion, a price-to-earnings ratio of -42.06 and a beta of 0.11. The business has a 50-day moving average of $81.27 and a 200-day moving average of $72.03.

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

Insider Buying and Selling

In related news, President Vahe Kuzoyan sold 16,388 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $88.95, for a total value of $1,457,712.60. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michele O'connor sold 4,910 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $80.93, for a total value of $397,366.30. Following the transaction, the chief accounting officer directly owned 71,676 shares in the company, valued at approximately $5,800,738.68. The trade was a 6.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 482,705 shares of company stock valued at $37,077,677 over the last quarter. 39.89% of the stock is owned by corporate insiders.

Institutional Trading of ServiceTitan

Several hedge funds have recently made changes to their positions in TTAN. Franklin Resources Inc. lifted its holdings in ServiceTitan by 33.8% during 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. Artisan Partners Limited Partnership raised its stake in shares of ServiceTitan by 47.3% in the fourth quarter. Artisan Partners Limited Partnership now owns 1,617,353 shares of the company's stock valued at $172,248,000 after acquiring an additional 519,024 shares in the last quarter. Capital International Investors boosted its holdings in ServiceTitan by 23.9% in the fourth quarter. Capital International Investors now owns 1,224,699 shares of the company's stock valued at $130,430,000 after purchasing an additional 236,287 shares during the period. Bamco Inc. NY boosted its holdings in ServiceTitan by 14.0% in the fourth quarter. Bamco Inc. NY now owns 1,096,931 shares of the company's stock valued at $116,823,000 after purchasing an additional 134,313 shares during the period. Finally, Norges Bank acquired a new position in ServiceTitan during the 4th quarter worth $112,678,000.

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.

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