ServiceTitan (NASDAQ:TTAN) Sets New 12-Month Low - Time to Sell?

Key Points

• ServiceTitan shares fell to a new 52-week low of about $54.13 after investors reacted negatively to revenue-timing issues and uncertainty surrounding the company’s transition to its Max platform.
• Fiscal second-quarter results exceeded expectations, with revenue up 20.9% year over year to $292.76 million and EPS of $0.40 versus the $0.35 consensus estimate; free cash flow and operating margins also improved.
• Analysts have broadly lowered price targets, while investor law firms are investigating potential disclosure issues. Despite the concerns, Wall Street’s consensus remains “Moderate Buy,” with an average target of $96.38.

ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday . The company traded as low as $54.13 and last traded at $54.0430, with a volume of 1590131 shares changing hands. The stock had previously closed at $56.01.

Key Stories Impacting ServiceTitan

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal second-quarter revenue of $292.8 million, up 21% year over year, while non-GAAP free cash flow reached a record $50.5 million and non-GAAP operating margin improved to 15.2%. The company also highlighted continued adoption of its Max platform. ServiceTitan Bets on Max Despite Near-Term Headwinds
• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating, indicating that at least one analyst continues to view the post-earnings decline as an attractive opportunity. BTIG Reaffirms Buy Rating
• Neutral Sentiment: ServiceTitan’s quarterly results exceeded consensus expectations, with EPS of $0.40 versus estimates of $0.35 and revenue of $292.76 million versus estimates of $285.90 million. However, investors focused more heavily on forward-looking issues than on the quarterly beat. ServiceTitan Fiscal 2027 Second-Quarter Results
• Negative Sentiment: Management disclosed revenue-recognition timing differences and indicated that the shift toward Max would reduce professional-services revenue by roughly another $2 million during the remainder of the fiscal year. Slower year-over-year growth and uncertainty around the timing and mix of revenue triggered the major selloff. ServiceTitan Scrutinized Over Revenue Timing and Growth
• Negative Sentiment: Analysts have broadly reduced their outlooks: Citigroup cut its target to $76 and maintained Neutral, while Stifel Nicolaus and TD Cowen lowered targets to $100 and Piper Sandler reduced its target to $110. Robert W. Baird, KeyCorp and BMO Capital Markets also issued more pessimistic forecasts. Analyst Target Reductions
• Negative Sentiment: Investor law firms have announced investigations into whether ServiceTitan adequately disclosed the revenue-timing and Max-related issues, adding potential legal and reputational risk. ServiceTitan Investor Investigation

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on TTAN shares. KeyCorp decreased their target price on shares of ServiceTitan from $120.00 to $110.00 and set an "overweight" rating for the company in a research note on Wednesday. Citigroup dropped their price target on shares of ServiceTitan from $83.00 to $76.00 and set a "neutral" rating on the stock in a research note on Wednesday. Piper Sandler cut their price objective on shares of ServiceTitan from $115.00 to $110.00 and set an "overweight" rating on the stock in a report on Wednesday. Wells Fargo & Company decreased their price objective on shares of ServiceTitan from $115.00 to $105.00 and set an "overweight" rating for the company in a research report on Wednesday. Finally, UBS Group set a $100.00 target price on ServiceTitan in a research note on Wednesday. Fourteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $96.38.

ServiceTitan Price Performance

The firm has a market cap of $5.16 billion, a price-to-earnings ratio of -39.79 and a beta of 0.11. The business's 50-day moving average price is $83.88 and its two-hundred day moving average price is $72.55.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.40 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $292.76 million for the quarter, compared to analysts' expectations of $285.89 million. During the same period in the prior year, the company posted $0.33 earnings per share. The firm's quarterly revenue was up 20.9% on a year-over-year basis. Equities analysts predict that ServiceTitan Inc. will post -0.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Michele O'connor sold 4,910 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $80.93, for a total transaction of $397,366.30. Following the transaction, the chief accounting officer owned 71,676 shares of the company's stock, valued at approximately $5,800,738.68. This trade represents a 6.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Ara Mahdessian sold 38,287 shares of ServiceTitan stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $84.89, for a total value of $3,250,183.43. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 514,837 shares of company stock worth $39,203,222. 39.89% of the stock is currently owned by insiders.

Institutional Trading of ServiceTitan

Institutional investors and hedge funds have recently bought and sold shares of the company. Woodline Partners LP raised its position in shares of ServiceTitan by 4.6% during the 1st quarter. Woodline Partners LP now owns 2,141 shares of the company's stock valued at $204,000 after acquiring an additional 95 shares in the last quarter. Cetera Investment Advisers bought a new stake in ServiceTitan during the second quarter valued at $345,000. Russell Investments Group Ltd. bought a new stake in ServiceTitan during the second quarter valued at $500,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of ServiceTitan by 1,005.1% during 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 period. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of ServiceTitan during the second quarter worth $393,000.

ServiceTitan Company 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.

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.