ServiceTitan (NASDAQ:TTAN) Shares Gap Down After Analyst Downgrade

Key Points

• ServiceTitan shares plunged: The stock opened at $67.13 after closing at $81.58, following Robert W. Baird’s price-target cut from $101 to $85; shares later traded near $56.93.
• Analyst sentiment remains broadly positive: Despite several target reductions, 14 analysts rate the stock a Buy, with an average rating of “Moderate Buy” and an average price target of $102.25.
• Quarterly results exceeded expectations: ServiceTitan reported EPS of $0.40 versus the $0.35 consensus and revenue of $292.76 million, up 20.9% year over year; insiders sold $39.2 million of stock over the past three months.

ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report)'s share price gapped down prior to trading on Wednesday after Robert W. Baird lowered their price target on the stock from $101.00 to $85.00. The stock had previously closed at $81.58, but opened at $67.13. Robert W. Baird currently has an outperform rating on the stock. ServiceTitan shares last traded at $56.9280, with a volume of 4,570,134 shares traded.

TTAN has been the topic of several other research reports. KeyCorp decreased their price target on shares of ServiceTitan from $120.00 to $110.00 and set an "overweight" rating on the stock in a report on Wednesday. TD Cowen lifted their price objective on ServiceTitan from $110.00 to $125.00 and gave the company a "buy" rating in a research note on Friday, June 5th. Needham & Company LLC restated a "buy" rating and set a $100.00 target price on shares of ServiceTitan in a research report on Wednesday. Truist Financial restated a "buy" rating and issued a $110.00 target price (up from $100.00) on shares of ServiceTitan in a research note on Friday, June 5th. Finally, Weiss Ratings raised ServiceTitan from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, August 26th. 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 company. Based on data from MarketBeat.com, ServiceTitan currently has an average rating of "Moderate Buy" and an average target price of $102.25.

Insider Buying and Selling

In other ServiceTitan news, CEO Ara Mahdessian sold 51,947 shares of ServiceTitan stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $80.98, for a total transaction of $4,206,668.06. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Sherry sold 20,192 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $66.19, for a total value of $1,336,508.48. Following the completion of the transaction, the chief financial officer owned 398,033 shares of the company's stock, valued at $26,345,804.27. The trade was a 4.83% decrease in their ownership of the stock. 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. Insiders sold 514,837 shares of company stock valued at $39,203,222 in the last three months. 39.89% of the stock is owned by corporate insiders.

ServiceTitan News Roundup

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported quarterly EPS of $0.40, above the $0.35 consensus estimate, while revenue rose 20.9% year over year to $292.76 million, exceeding expectations of approximately $285.9 million. ServiceTitan fiscal second-quarter results
• Positive Sentiment: BTIG Research reaffirmed its “buy” rating and set a $110 price target, implying substantial upside from the stock’s current level. ServiceTitan analyst expectations

Institutional Trading of ServiceTitan

A number of hedge funds have recently bought and sold shares of TTAN. WINTON GROUP Ltd bought a new position in ServiceTitan during the second quarter valued at approximately $5,218,000. Integrated Wealth Concepts LLC purchased a new position in shares of ServiceTitan during the second quarter worth approximately $115,000. NewEdge Advisors LLC lifted its holdings in shares of ServiceTitan by 7,677.2% in the 2nd quarter. NewEdge Advisors LLC now owns 8,866 shares of the company's stock worth $627,000 after acquiring an additional 8,752 shares during the last quarter. Baird Financial Group Inc. lifted its holdings in shares of ServiceTitan by 58.8% in the 2nd quarter. Baird Financial Group Inc. now owns 30,752 shares of the company's stock worth $2,174,000 after acquiring an additional 11,383 shares during the last quarter. Finally, Allworth Financial LP boosted its stake in shares of ServiceTitan by 46.7% in the 2nd quarter. Allworth Financial LP now owns 5,970 shares of the company's stock valued at $422,000 after purchasing an additional 1,900 shares in the last quarter.

ServiceTitan Trading Down 31.2%

The company has a market cap of $5.36 billion, a P/E ratio of -39.10 and a beta of 0.11. The company's fifty day moving average is $84.66 and its 200 day moving average is $72.69.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last posted its quarterly 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. ServiceTitan had a negative net margin of 13.44% and a negative return on equity of 5.59%. The business had revenue of $292.76 million during the quarter, compared to the consensus estimate of $285.89 million. During the same period in the previous year, the firm posted $0.33 earnings per share. The firm's revenue for the quarter was up 20.9% on a year-over-year basis. Analysts anticipate that ServiceTitan Inc. will post -0.54 EPS for the current year.

About ServiceTitan

ServiceTitan, Inc NASDAQ: TTAN is a cloud-based software provider specializing in end-to-end business management solutions for residential and commercial trade contractors. The company's platform integrates customer relationship management, scheduling and dispatch, mobile workforce management, invoicing, payments and reporting tools into a single suite. By automating key back-office processes, ServiceTitan helps field service businesses improve operational efficiency, enhance customer experience and drive revenue growth.

At the core of ServiceTitan's offering is a mobile application that allows technicians to access job details, update work orders, capture signatures and process payments from the field.

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