ServiceTitan (NASDAQ:TTAN) Shares Up 7.8% - Still a Buy?

Key Points

• ServiceTitan shares rose 7.8% to about $58.92 in heavy trading, with volume roughly 130% above the average session level.
• Analysts remain broadly positive, with 14 Buy ratings, two Holds, and one Sell; however, several firms recently lowered their price targets. The consensus rating is “Moderate Buy,” with an average target of $96.38.
• The latest quarter exceeded expectations, with adjusted earnings of $0.40 per share and revenue of $292.76 million, up 20.9% year over year. Despite the growth, the company reported a negative net margin, and insiders sold more than $39.2 million of stock over the past quarter.

ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report)'s stock price rose 7.8% during mid-day trading on Monday . The stock traded as high as $58.94 and last traded at $58.9210. 3,737,592 shares changed hands during trading, an increase of 130% from the average session volume of 1,624,622 shares. The stock had previously closed at $54.68.

Analysts Set New Price Targets

Several research analysts have commented on the company. Canaccord Genuity Group cut their target price on ServiceTitan from $105.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, September 9th. BMO Capital Markets lowered their price objective on ServiceTitan from $103.00 to $90.00 and set an "outperform" rating for the company in a research report on Wednesday, September 9th. Truist Financial restated 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. Piper Sandler cut their price objective on ServiceTitan from $115.00 to $110.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 9th. Finally, Weiss Ratings cut ServiceTitan from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday. Fourteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $96.38.

ServiceTitan Price Performance

The firm has a market cap of $5.62 billion, a price-to-earnings ratio of -43.27 and a beta of 0.11. The firm's fifty day moving average is $83.41 and its 200-day moving average is $72.49.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last issued its quarterly earnings results on Tuesday, September 8th. The company reported $0.40 earnings per share 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 the consensus estimate of $285.89 million. During the same period last year, the business posted $0.33 EPS. The business's revenue was up 20.9% compared to the same quarter last year. As a group, equities research analysts anticipate that ServiceTitan Inc. will post -0.56 EPS for the current year.

Insider Activity at ServiceTitan

In other ServiceTitan news, CFO David Sherry sold 9,000 shares of ServiceTitan stock in a transaction that occurred 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 sale, the chief financial officer directly owned 386,757 shares in the company, valued at approximately $35,129,138.31. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michele O'connor sold 4,910 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $80.93, for a total value of $397,366.30. Following the completion of the transaction, the chief accounting officer directly owned 71,676 shares in the company, valued at approximately $5,800,738.68. This trade represents a 6.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 514,837 shares of company stock worth $39,203,222 over the last quarter. 39.89% of the stock is owned by company insiders.

Institutional Trading of ServiceTitan

Several hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its position in ServiceTitan by 1,005.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company's stock valued at $46,000 after buying an additional 392 shares in the last quarter. State of Wyoming bought a new position in shares of ServiceTitan during the 1st quarter worth approximately $48,000. Sunbelt Securities Inc. boosted its stake in shares of ServiceTitan by 391.0% in the 4th quarter. Sunbelt Securities Inc. now owns 491 shares of the company's stock worth $52,000 after buying an additional 391 shares during the last quarter. Parallel Advisors LLC grew its holdings in shares of ServiceTitan by 161.7% in the third quarter. Parallel Advisors LLC now owns 526 shares of the company's stock valued at $53,000 after acquiring an additional 325 shares in the last quarter. Finally, Elevation Wealth Partners LLC increased its position in shares of ServiceTitan by 20.0% during the second quarter. Elevation Wealth Partners LLC now owns 863 shares of the company's stock valued at $61,000 after acquiring an additional 144 shares during the last quarter.

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.

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