ServiceTitan (NASDAQ:TTAN) Shares Gap Up Following Strong Earnings

Key Points

• ServiceTitan shares gapped up after the company reported stronger-than-expected quarterly results, opening well above the prior close and trading higher on heavy volume.
• The company posted EPS of $0.37 versus the $0.28 consensus estimate, while revenue climbed 24.6% year over year to $268.8 million.
• Analysts turned more bullish, with several firms raising price targets and the stock now carrying a consensus Moderate Buy rating, though ServiceTitan remains unprofitable on a GAAP basis.

Shares of ServiceTitan Inc. (NASDAQ:TTAN - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $74.33, but opened at $83.05. ServiceTitan shares last traded at $79.6810, with a volume of 1,088,806 shares trading hands.

The company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.09. The firm had revenue of $268.82 million during the quarter, compared to the consensus estimate of $256.65 billion. ServiceTitan had a negative net margin of 16.64% and a negative return on equity of 6.86%. The firm's quarterly revenue was up 24.6% on a year-over-year basis. During the same period last year, the firm posted $0.18 EPS.

ServiceTitan News Summary

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan beat Q1 earnings expectations, reporting $0.37 per share versus the $0.28 consensus, while revenue rose 24.6% year over year to $268.8 million. The company also lifted guidance, which helped fuel buying interest in the stock. ServiceTitan earnings report
• Positive Sentiment: BMO Capital Markets raised its price target on TTAN to $103 from $92 and kept an outperform rating, pointing to meaningful upside from the current share price. BMO price target update
• Positive Sentiment: BTIG Research increased its target to $110 from $90 and reiterated a buy rating, reflecting confidence in ServiceTitan’s growth outlook. BTIG price target update
• Positive Sentiment: Piper Sandler raised its target to $115 from $100 and maintained an overweight rating, adding to the bullish analyst sentiment around TTAN. Piper Sandler price target update
• Neutral Sentiment: Investors are also focusing on ServiceTitan’s AI-driven product expansion and sticky customer base, which support the long-term story, though the company still reported GAAP losses and heavy stock-based compensation. Seeking Alpha commentary
• Negative Sentiment: Despite the strong quarter, ServiceTitan remains unprofitable on a GAAP basis, with negative operating margin and ongoing dilution concerns from stock-based compensation, which may limit upside if investors focus on profitability. QuiverQuant earnings reaction

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. BTIG Research increased their price target on ServiceTitan from $90.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday. KeyCorp reiterated an "overweight" rating on shares of ServiceTitan in a research report on Tuesday, May 26th. Morgan Stanley increased their target price on ServiceTitan from $118.00 to $124.00 and gave the stock an "overweight" rating in a report on Friday. Truist Financial set a $110.00 target price on ServiceTitan in a research note on Friday. Finally, Canaccord Genuity Group cut their price target on ServiceTitan from $140.00 to $105.00 and set a "buy" rating for the company in a report on Friday, March 13th. Fifteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $111.93.

Insider Activity at ServiceTitan

In other news, CAO Michele O'connor sold 5,154 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $69.86, for a total transaction of $360,058.44. Following the completion of the sale, the chief accounting officer owned 84,416 shares in the company, valued at $5,897,301.76. The trade was a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ara Mahdessian sold 2,288 shares of the company's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $69.86, for a total value of $159,839.68. Following the transaction, the chief executive officer directly owned 1 shares in the company, valued at $69.86. This trade represents a 99.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 33,440 shares of company stock worth $2,281,468. Company insiders own 39.89% of the company's stock.

Institutional Trading of ServiceTitan

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in shares of ServiceTitan by 538.4% during the 3rd quarter. Vanguard Group Inc. now owns 4,429,930 shares of the company's stock worth $446,670,000 after buying an additional 3,735,968 shares during the period. JPMorgan Chase & Co. lifted its holdings in ServiceTitan by 118.4% in the third quarter. JPMorgan Chase & Co. now owns 2,893,959 shares of the company's stock valued at $291,798,000 after buying an additional 1,569,136 shares during the period. Norges Bank bought a new position in ServiceTitan in the fourth quarter valued at approximately $112,678,000. CIBC Bancorp USA Inc. bought a new position in ServiceTitan in the third quarter valued at approximately $84,983,000. Finally, Fuller & Thaler Asset Management Inc. acquired a new stake in ServiceTitan during the 4th quarter worth $89,702,000.

ServiceTitan Trading Up 7.5%

The business's fifty day simple moving average is $62.95 and its 200 day simple moving average is $78.04. The stock has a market cap of $7.61 billion, a price-to-earnings ratio of -46.57 and a beta of 0.13.

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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