SEC Filing Analysis: ServiceTitan, Inc. (TTAN)

Executive Summary

• Trading Significance: Medium
• Key Takeaway: ServiceTitan's CEO, Ara Mahdessian, sold a total of 131,191 shares of Class A Common Stock for approximately $14.1 million across two days. The transactions were executed under a pre-established Rule 10b5-1 trading plan.
• Market Impact: The sale's impact is likely neutral. While the absolute dollar amount is large, it represents a very small fraction of the company's market capitalization and was pre-scheduled, indicating it's likely for personal financial planning rather than a reaction to company performance.

Company Information

Field	Value
Company	ServiceTitan, Inc.
Ticker Symbol	TTAN
CIK	0001638826
Industry	SERVICES-PREPACKAGED SOFTWARE

Insider Information

Field	Value
Name	Mahdessian Ara
CIK	0001908788
Title/Position	Chief Executive Officer
Relationship	Director, Officer

Transaction Details

This filing reports a series of transactions involving the conversion of Class B stock to Class A, followed by the sale of the Class A stock. The details below aggregate the sales.

Field	Value
Form Type	4
Transaction Date	2025-12-10 & 2025-12-11
Transaction Code	S (Sale), C (Conversion)
Security Type	Class A Common Stock
Shares Involved	131,191 (Sold)
Price Per Share	~$107.33 (Weighted Average)
Total Value	$14,081,087
Shares Owned After	0 (Class A shares in the specific trust)
Ownership Type	Indirect (By the AMKE Trust dated February 1, 2019)

Financial Impact Assessment

Transaction Materiality

Metric	Value
Transaction Value	$14,081,087
% of Market Cap	0.17%
Shares Transacted	131,191
% of Shares Outstanding	Not Available
Post-Transaction Ownership	The insider still holds over 8.8 million Class B shares directly and indirectly.
Materiality Assessment	Moderate

Impact Evaluation

• Market Cap Context: The $14.1 million sale is not financially material for a company with an $8.3 billion market capitalization, representing just 0.17% of its value.
• Ownership Concentration: While the sale liquidated the Class A shares held in this specific trust, the CEO retains a very significant ownership stake through more than 8.8 million shares of Class B Common Stock held directly and through other trusts. This sale represents a very small fraction of his total economic interest in the company.
• Dilution Impact: Not applicable, as this was a secondary sale of existing shares, not an issuance of new equity.
• Transaction Significance: The significance is moderate. The high-profile seller (CEO) and large absolute value are tempered by the sale being a small percentage of the market cap and executed under a 10b5-1 plan, which reduces its signaling value.

Market Impact Analysis

Stock Impact Prediction

• Direction: Neutral
• Reasoning: Pre-planned sales under a 10b5-1 plan are generally viewed by the market as liquidity or diversification events for insiders, not as a negative commentary on the company's future prospects. The sale's small size relative to the market cap further supports a neutral outlook.

Volume & Sentiment

• Expected Volume Impact: A minor, short-term increase in trading volume may be observed, but the trades are unlikely to significantly impact overall liquidity or price trends.
• Sentiment Indicator: Neutral. The context of the 10b5-1 plan effectively neutralizes the potentially bearish sentiment of a CEO selling shares.

Investment Insights

Positive Market Indicators

• The insider retains a massive ownership stake in the company via Class B shares, indicating continued alignment with long-term shareholder interests.

Risk Factors

• Any large sale by a C-level executive can be perceived negatively if the context is ignored. The primary risk is a misinterpretation of this planned sale as a lack of confidence.

Key Takeaways

1. Planned Liquidity Event: This is a textbook example of a high-level executive using a Rule 10b5-1 plan to systematically monetize a small portion of their holdings for financial planning.
2. Not a Bearish Signal: The pre-scheduled nature of the sale and the insider's vast remaining holdings suggest this is not a signal of poor future performance.
3. Dual-Class Structure in Action: The filing illustrates the mechanics of a dual-class stock structure, where insiders convert super-voting or non-trading shares (Class B) into publicly tradable shares (Class A) to sell on the open market.

Additional Context

Transaction Notes

• Special Circumstances: As noted in Footnote F2, all sales were made pursuant to a Rule 10b5-1 trading plan adopted on April 15, 2025. This plan was established months before the transactions occurred.

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Important Disclaimer

This analysis is for informational and educational purposes only and is NOT investment advice.

The information presented is based on publicly available SEC filings and should not be construed as a recommendation to buy, sell, or hold any securities. Past performance does not guarantee future results. All investments carry risk, including the potential loss of principal.

Always consult with a qualified financial advisor before making any investment decisions.

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Data Sources:

• SEC EDGAR Filings (Official)
• Analysis Generated: 2025-12-12

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This post is automated and based on publicly available SEC EDGAR filings. All data is sourced directly from official SEC databases.