ServiceTitan (NASDAQ:TTAN) Stock Jumps 5.1% - Should You Buy?

Key Points

• ServiceTitan shares rose 5.1% to about $62.98, though trading volume was 76% below the average session level.
• Analysts remain broadly positive, with 14 Buy ratings, two Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $96.38. However, several firms recently lowered their targets.
• The company beat quarterly earnings and revenue expectations, while revenue grew 20.9% year over year; despite this growth, ServiceTitan remains unprofitable, with a 12.12% negative net margin and analysts forecasting a fiscal-year loss.

Shares of ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report) rose 5.1% during trading on Tuesday. The stock traded as high as $63.35 and last traded at $62.9770. Approximately 417,427 shares changed hands during trading, a decline of 76% from the average session volume of 1,735,463 shares. The stock had previously closed at $59.92.

Analysts Set New Price Targets

A number of analysts have commented on the stock. TD Cowen reaffirmed a "buy" rating and set a $100.00 price objective on shares of ServiceTitan in a research note on Friday. Weiss Ratings downgraded ServiceTitan from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, September 9th. Piper Sandler decreased their price objective on ServiceTitan from $115.00 to $110.00 and set an "overweight" rating for the company in a research report on Wednesday, September 9th. Citigroup dropped their target price on ServiceTitan from $83.00 to $76.00 and set a "neutral" rating on the stock in a report on Wednesday, September 9th. Finally, Morgan Stanley decreased their price target on shares of ServiceTitan from $124.00 to $92.00 and set an "overweight" rating for the company in a report on Wednesday, September 9th. Fourteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, ServiceTitan currently has a consensus rating of "Moderate Buy" and an average price target of $96.38.

ServiceTitan Stock Performance

The company has a market cap of $6.19 billion, a price-to-earnings ratio of -47.21 and a beta of 0.11. The company's 50 day moving average price is $79.02 and its 200 day moving average price is $71.22.

ServiceTitan (NASDAQ:TTAN - Get Free Report) last issued its quarterly earnings data on Tuesday, September 8th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. The firm had revenue of $292.76 million during the quarter, compared to analysts' expectations 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 for the quarter was up 20.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.33 earnings per share. On average, equities research analysts forecast that ServiceTitan Inc. will post -0.53 EPS for the current fiscal year.

Insider Buying and Selling

In related news, President Vahe Kuzoyan sold 3,148 shares of the business's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $57.07, for a total value of $179,656.36. Following the completion of the sale, the president directly owned 2 shares in the company, valued at approximately $114.14. The trade was a 99.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO David Sherry sold 23,246 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $57.07, for a total value of $1,326,649.22. Following the sale, the chief financial officer directly owned 363,511 shares of the company's stock, valued at $20,745,572.77. The trade was a 6.01% decrease in their position. 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. In the last 90 days, insiders have sold 324,533 shares of company stock worth $26,813,042. Insiders own 39.89% of the company's stock.

Institutional Trading of ServiceTitan

Several large investors have recently modified their holdings of the company. Tidal Investments LLC boosted its holdings in ServiceTitan by 598.9% during the second quarter. Tidal Investments LLC now owns 27,963 shares of the company's stock valued at $1,977,000 after acquiring an additional 23,962 shares during the period. Whetstone Capital Advisors LLC bought a new position in shares of ServiceTitan in the second quarter worth about $3,275,000. WINTON GROUP Ltd bought a new position in shares of ServiceTitan in the second quarter worth about $5,218,000. Integrated Wealth Concepts LLC acquired a new position in shares of ServiceTitan during the 2nd quarter worth about $115,000. Finally, NewEdge Advisors LLC lifted its position in shares of ServiceTitan by 7,677.2% during the 2nd quarter. NewEdge Advisors LLC now owns 8,866 shares of the company's stock worth $627,000 after purchasing an additional 8,752 shares during the last quarter.

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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