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

ServiceTitan Inc. (NASDAQ:TTAN)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. 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.

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

More ServiceTitan News

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

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Stifel Nicolaus set a $125.00 price target on shares of ServiceTitan in a research report on Wednesday, May 27th. Wells Fargo & Company decreased their price objective on shares of ServiceTitan from $125.00 to $115.00 and set an “overweight” rating for the company in a report on Friday, March 13th. KeyCorp reaffirmed an “overweight” rating on shares of ServiceTitan in a research note on Tuesday, May 26th. BMO Capital Markets increased their target price on shares of ServiceTitan from $92.00 to $103.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Piper Sandler lifted their price target on shares of ServiceTitan from $100.00 to $115.00 and gave the stock an “overweight” rating in a research report on Friday. Fifteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $111.93.

Insiders Place Their Bets

In other news, CEO Ara Mahdessian sold 2,288 shares of ServiceTitan stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $69.86, for a total transaction of $159,839.68. Following the transaction, the chief executive officer owned 1 shares in the company, valued at $69.86. The trade was a 99.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO David Sherry sold 17,778 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $69.86, for a total value of $1,241,971.08. Following the completion of the transaction, the chief financial officer owned 313,025 shares of the company’s stock, valued at $21,867,926.50. This represents a 5.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 33,440 shares of company stock worth $2,281,468. 39.89% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Woodline Partners LP raised its holdings in shares of ServiceTitan by 4.6% during the first quarter. Woodline Partners LP now owns 2,141 shares of the company’s stock worth $204,000 after acquiring an additional 95 shares during the period. Cetera Investment Advisers acquired a new position in ServiceTitan in the 2nd quarter worth $345,000. Russell Investments Group Ltd. acquired a new position in ServiceTitan in the 2nd quarter worth $500,000. Northwestern Mutual Wealth Management Co. increased its holdings in ServiceTitan by 1,005.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company’s stock worth $46,000 after purchasing an additional 392 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in ServiceTitan during the 2nd quarter worth about $393,000.

ServiceTitan Trading Up 7.5%

The company has a 50 day simple moving average of $62.95 and a 200-day simple moving average of $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.

ServiceTitan Company Profile

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.