Citigroup Cuts ServiceTitan (NASDAQ:TTAN) Price Target to $76.00

ServiceTitan (NASDAQ:TTAN) had its target price reduced by Citigroup from $83.00 to $76.00 in a research note published on Wednesday,Benzinga reports. Citigroup currently has a neutral rating on the stock.

A number of other analysts have also issued reports on TTAN. Canaccord Genuity Group decreased their target price on shares of ServiceTitan from $105.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday. BTIG Research reissued a “buy” rating and set a $110.00 price target on shares of ServiceTitan in a research note on Wednesday. Piper Sandler reduced their price target on ServiceTitan from $115.00 to $110.00 and set an “overweight” rating on the stock in a research note on Wednesday. Wells Fargo & Company decreased their price objective on ServiceTitan from $115.00 to $105.00 and set an “overweight” rating on the stock in a report on Wednesday. Finally, Stifel Nicolaus lowered their price objective on ServiceTitan from $125.00 to $100.00 and set a “buy” rating for the company in a research report on Wednesday. Fourteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ServiceTitan has a consensus rating of “Moderate Buy” and an average price target of $96.38.

ServiceTitan Trading Down 2.4%

Shares of TTAN stock opened at $54.68 on Wednesday. The company has a market capitalization of $5.22 billion, a price-to-earnings ratio of -40.21 and a beta of 0.11. The firm has a 50-day moving average price of $83.41 and a 200 day moving average price of $72.42. ServiceTitan has a twelve month low of $53.80 and a twelve month high of $119.60.

ServiceTitan (NASDAQ:TTAN) last released its quarterly earnings results on Tuesday, September 8th. The company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.05. The company 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 firm’s revenue for the quarter was up 20.9% compared to the same quarter last year. During the same period last year, the company earned $0.33 EPS. As a group, research analysts predict that ServiceTitan will post -0.54 earnings per share for the current year.

Insider Transactions at ServiceTitan

In related news, CFO David Sherry sold 9,000 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $90.83, for a total transaction of $817,470.00. Following the completion of the transaction, the chief financial officer owned 386,757 shares of the company’s stock, valued at approximately $35,129,138.31. This represents a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ara Mahdessian sold 38,287 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $84.89, for a total transaction of $3,250,183.43. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 514,837 shares of company stock valued at $39,203,222 in the last quarter. Insiders own 39.89% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. California State Teachers Retirement System boosted its holdings in ServiceTitan by 7,065.5% in the second quarter. California State Teachers Retirement System now owns 4,537,461 shares of the company’s stock valued at $320,844,000 after acquiring an additional 4,474,137 shares during the last quarter. Norges Bank acquired a new stake in ServiceTitan during the fourth quarter worth about $112,678,000. Fuller & Thaler Asset Management Inc. purchased a new position in shares of ServiceTitan in the 4th quarter worth about $89,702,000. Madison Asset Management LLC purchased a new position in shares of ServiceTitan in the 2nd quarter worth about $56,118,000. Finally, Atreides Management LP acquired a new position in shares of ServiceTitan in the 2nd quarter valued at about $68,679,000.

Key ServiceTitan News

Here are the key news stories impacting ServiceTitan this week:

• Positive Sentiment: ServiceTitan reported fiscal Q2 revenue of approximately $292.8 million, up 21% year over year, exceeding analyst expectations. Non-GAAP free cash flow reached a record $50.5 million, while the non-GAAP operating margin improved to 15.2%. ServiceTitan Bets on Max Despite Near-Term Headwinds
• Positive Sentiment: BTIG Research reaffirmed its “Buy” rating, indicating that at least one analyst believes the recent selloff has created an attractive long-term entry point. BTIG Reaffirms Buy Rating
• Neutral Sentiment: Analyst coverage remains mixed. Citigroup, Stifel Nicolaus, TD Cowen and Piper Sandler all reduced their price targets to $76, $100, $100 and $110, respectively, while still maintaining targets well above the recent trading level. Citigroup Lowers Price Target
• Negative Sentiment: The primary catalyst for the selloff was disclosure of unexpected revenue-recognition timing differences and slower year-over-year growth in fiscal Q2. Investors appear concerned that reported results may not fully reflect the underlying pace of demand, even though revenue and adjusted profitability exceeded estimates. ServiceTitan Scrutinized Over Revenue Timing
• Negative Sentiment: Robert W. Baird, KeyCorp and BMO Capital Markets issued more pessimistic forecasts, adding to concerns about valuation, near-term execution and the company’s continued net losses. Baird Issues Pessimistic Forecast
• Negative Sentiment: Commentary following the earnings call concluded that the quarter was not disastrous but was insufficient to support an analyst upgrade, reinforcing the market’s cautious view of ServiceTitan’s near-term outlook. ServiceTitan Q2 Analysis

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.