ServiceTitan (NASDAQ:TTAN) Stock Jumps 5.8% - Still a Buy?

Key Points

• ServiceTitan shares rose 5.8% to about $72.62, though trading volume was 61% below the average session volume.
• Analysts remain broadly bullish, with 14 Buy ratings, two Holds and one Sell; the stock carries a “Moderate Buy” consensus and an average price target of $96.38, despite several target-price cuts.
• The company beat quarterly earnings and revenue estimates, with revenue up 20.9% year over year, but it remains unprofitable; insiders have sold approximately $22.2 million in shares over the past three months.

ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report)'s share price shot up 5.8% during trading on Wednesday. The stock traded as high as $71.74 and last traded at $72.6240. 675,702 shares were traded during trading, a decline of 61% from the average session volume of 1,743,710 shares. The stock had previously closed at $68.67.

Analyst Upgrades and Downgrades

TTAN has been the topic of several analyst reports. Weiss Ratings upgraded ServiceTitan from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, September 29th. Truist Financial reissued a "buy" rating and set a $100.00 target price (down from $110.00) on shares of ServiceTitan in a research note on Wednesday, September 9th. Needham & Company LLC reiterated a "buy" rating on shares of ServiceTitan in a report on Wednesday. Piper Sandler dropped their price target on ServiceTitan from $115.00 to $110.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 9th. Finally, TD Cowen restated a "buy" rating and set a $100.00 price objective on shares of ServiceTitan in a research report on Wednesday. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $96.38.

ServiceTitan Price Performance

The company has a market cap of $6.97 billion, a price-to-earnings ratio of -53.05 and a beta of 0.33. The firm has a fifty day simple moving average of $78.40 and a 200 day simple moving average of $71.01.

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

Insider Transactions at ServiceTitan

In other ServiceTitan news, President Vahe Kuzoyan sold 114,732 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $88.84, for a total value of $10,192,790.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ara Mahdessian sold 49,766 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $84.75, for a total value of $4,217,668.50. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 267,676 shares of company stock valued at $22,209,008. 39.89% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceTitan

Several institutional investors and hedge funds have recently modified their holdings of TTAN. Franklin Resources Inc. raised its holdings in shares of ServiceTitan by 33.8% in the fourth quarter. Franklin Resources Inc. now owns 2,014,025 shares of the company's stock valued at $214,494,000 after purchasing an additional 508,848 shares during the last quarter. Artisan Partners Limited Partnership increased its position in ServiceTitan by 47.3% during the 4th quarter. Artisan Partners Limited Partnership now owns 1,617,353 shares of the company's stock worth $172,248,000 after buying an additional 519,024 shares during the period. Capital International Investors boosted its position in shares of 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 acquiring an additional 236,287 shares during the period. Bamco Inc. NY increased its stake in ServiceTitan by 14.0% during the 4th quarter. Bamco Inc. NY now owns 1,096,931 shares of the company's stock worth $116,823,000 after acquiring an additional 134,313 shares during the period. Finally, Madison Asset Management LLC raised its position in shares of ServiceTitan by 41.1% in the 1st quarter. Madison Asset Management LLC now owns 900,112 shares of the company's stock valued at $57,121,000 after buying an additional 262,037 shares in the last quarter.

About ServiceTitan

ServiceTitan, Inc is a cloud-based software company that provides business management solutions for residential and commercial contractors. Its platform is designed for companies in the trades, including heating, ventilation and air conditioning (HVAC), plumbing, electrical, roofing, landscaping and related services.

ServiceTitan's products support a range of operational and customer-facing functions, including scheduling and dispatching, customer relationship management, estimates, invoicing, payments, marketing, reporting and field-service management.

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