ServiceTitan (NASDAQ:TTAN) Trading 8.4% Higher – Time to Buy?
by Michael Walen · The Markets DailyShares of ServiceTitan Inc. (NASDAQ:TTAN – Get Free Report) were up 8.4% on Tuesday . The company traded as high as $60.49 and last traded at $61.2690. Approximately 2,003,401 shares changed hands during mid-day trading, an increase of 16% from the average session volume of 1,721,718 shares. The stock had previously closed at $56.53.
ServiceTitan News Summary
Here are the key news stories impacting ServiceTitan this week:
- Positive Sentiment: ServiceTitan’s roofing strategy received a customer validation from Canopy Services, which is using the company’s end-to-end platform across its growing portfolio of roofing brands. Canopy reportedly improved metrics including average ticket size and close rates, supporting the case that ServiceTitan can expand beyond HVAC and other core contractor markets. ServiceTitan roofing customer proof point
- Positive Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Moderate Buy” rating and an average price target of approximately $96.38. ServiceTitan’s latest reported quarter also exceeded expectations for adjusted EPS and revenue, with revenue increasing 20.9% year over year.
- Neutral Sentiment: Chief Accounting Officer Michele O’Connor sold 4,380 shares for approximately $268,713, reducing her holdings by 6.63% to 61,715 shares. Additional sales by senior executives were also reported. These transactions may concern investors, although insider sales can reflect tax obligations or equity-compensation schedules rather than a negative view of the business. ServiceTitan insider selling report
- Negative Sentiment: The dominant pressure remains fallout from the company’s September quarterly disclosure. Unexpected revenue-recognition timing differences and slower year-over-year growth have raised questions about the pace and quality of reported growth, driving the stock’s steep decline and keeping valuation sentiment weak.
- Negative Sentiment: Bleichmar Fonti & Auld and Pomerantz announced investigations into potential securities-law violations related to ServiceTitan’s growth disclosures, artificial-intelligence initiatives and Max platform. The investigations do not establish wrongdoing, but they add legal, reputational and headline risk. ServiceTitan securities investigation
Analyst Upgrades and Downgrades
Several research firms have recently weighed in on TTAN. Weiss Ratings lowered ServiceTitan from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, September 9th. Morgan Stanley dropped their price objective on ServiceTitan from $124.00 to $92.00 and set an “overweight” rating for the company in a report on Wednesday, September 9th. BTIG Research reiterated a “buy” rating and issued a $110.00 price objective on shares of ServiceTitan in a research report on Wednesday, September 9th. TD Cowen decreased their price target on shares of ServiceTitan from $125.00 to $100.00 and set a “buy” rating for the company in a research note on Wednesday, September 9th. Finally, Wells Fargo & Company lowered their target price on ServiceTitan from $115.00 to $105.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 9th. Fourteen 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’s stock. According to MarketBeat, ServiceTitan has a consensus rating of “Moderate Buy” and a consensus price target of $96.38.
Check Out Our Latest Stock Report on TTAN
ServiceTitan Stock Performance
The company has a market cap of $5.95 billion, a price-to-earnings ratio of -45.33 and a beta of 0.11. The business has a fifty day moving average price of $80.08 and a 200 day moving average price of $71.67.
ServiceTitan (NASDAQ:TTAN – Get Free Report) last posted its 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. The firm had revenue of $292.76 million for 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%. The company’s revenue was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.33 earnings per share. As a group, equities analysts anticipate that ServiceTitan Inc. will post -0.53 EPS for the current year.
Insider Buying and Selling
In related news, 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 in the company, valued at $20,745,572.77. This represents a 6.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ara Mahdessian sold 51,947 shares of the company’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $80.98, for a total value of $4,206,668.06. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 324,533 shares of company stock valued at $26,813,042 in the last ninety days. Insiders own 39.89% of the company’s stock.
Institutional Investors Weigh In On ServiceTitan
Several institutional investors have recently bought and sold shares of TTAN. Stockbridge Partners LLC bought a new position in shares of ServiceTitan in the second quarter valued at approximately $13,333,000. Natixis Advisors LLC bought a new stake in ServiceTitan during the 4th quarter worth approximately $39,174,000. Littlejohn & Co. LLC purchased a new stake in shares of ServiceTitan in the 4th quarter valued at about $19,686,000. WINTON GROUP Ltd bought a new position in ServiceTitan in the second quarter valued at $5,218,000. Finally, Tidal Investments LLC grew its position 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 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.