Universal Technical Institute (NYSE:UTI) Lowered to Hold Rating by Texas Capital

Key Points

• Texas Capital downgraded Universal Technical Institute from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $42.83.
• UTI shares opened at $20.66, down 3.8%, near their 52-week low of $19.52 and well below the 52-week high of $51.34.
• The company modestly beat quarterly EPS expectations, reporting $0.04 versus the $0.02 consensus, while revenue of $218.91 million fell slightly short of estimates. CEO Jerome Grant also sold 94,500 shares, reducing his direct holdings by nearly 22%.

Universal Technical Institute (NYSE:UTI - Get Free Report) was downgraded by investment analysts at Texas Capital from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

Other research analysts have also recently issued research reports about the stock. Truist Financial dropped their price objective on shares of Universal Technical Institute from $47.00 to $38.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Weiss Ratings raised Universal Technical Institute from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 25th. Rosenblatt Securities reissued a "buy" rating and issued a $45.00 price objective on shares of Universal Technical Institute in a report on Thursday, August 6th. Northland Securities set a $35.00 target price on shares of Universal Technical Institute in a research note on Thursday, September 10th. Finally, B. Riley Financial lowered their price target on Universal Technical Institute from $49.00 to $48.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Universal Technical Institute has an average rating of "Moderate Buy" and an average target price of $42.83.

Universal Technical Institute Stock Down 3.8%

Shares of UTI opened at $20.66 on Monday. The firm has a market capitalization of $1.14 billion, a P/E ratio of 33.32, a P/E/G ratio of 2.36 and a beta of 1.17. Universal Technical Institute has a 52 week low of $19.52 and a 52 week high of $51.34. The company has a 50-day simple moving average of $28.68 and a 200-day simple moving average of $35.40. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.30 and a current ratio of 1.30.

Universal Technical Institute (NYSE:UTI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.02. The firm had revenue of $218.91 million for the quarter, compared to analyst estimates of $220.40 million. Universal Technical Institute had a net margin of 3.88% and a return on equity of 10.18%. On average, equities research analysts expect that Universal Technical Institute will post 0.61 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Jerome Grant sold 94,500 shares of Universal Technical Institute stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $41.40, for a total transaction of $3,912,300.00. Following the completion of the sale, the chief executive officer directly owned 335,715 shares of the company's stock, valued at approximately $13,898,601. This trade represents a 21.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 9.80% of the company's stock.

Hedge Funds Weigh In On Universal Technical Institute

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of Universal Technical Institute during the 2nd quarter worth $323,080,000. Wasatch Advisors LP increased its stake in shares of Universal Technical Institute by 12.8% in the first quarter. Wasatch Advisors LP now owns 1,978,776 shares of the company's stock valued at $71,434,000 after buying an additional 223,893 shares during the period. Punch & Associates Investment Management Inc. acquired a new position in shares of Universal Technical Institute in the 2nd quarter worth approximately $46,879,000. Dimensional Fund Advisors LP raised its stake in Universal Technical Institute by 0.7% during the first quarter. Dimensional Fund Advisors LP now owns 1,296,989 shares of the company's stock worth $46,826,000 after buying an additional 9,153 shares during the last quarter. Finally, Conestoga Capital Advisors LLC boosted its position in Universal Technical Institute by 1,366.0% during the first quarter. Conestoga Capital Advisors LLC now owns 1,292,125 shares of the company's stock valued at $46,646,000 after acquiring an additional 1,203,985 shares during the last quarter. 75.67% of the stock is owned by institutional investors.

About Universal Technical Institute

Universal Technical Institute, Inc NYSE: UTI is a provider of postsecondary education and training for careers in the transportation, skilled trades and energy industries. The company offers programs in automotive, diesel, collision repair, motorcycle, marine, welding, CNC machining, wind energy and other technical fields, combining classroom instruction with hands-on laboratory experience.

Universal Technical Institute operates through a portfolio of specialized school brands, including Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute and MIAT College of Technology.

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