Universal Technical Institute (NYSE:UTI) Reaches New 12-Month Low - Here's Why

Key Points

• UTI shares hit a new 52-week low of $20.50 and last traded near $20.97, well below their 50-day and 200-day moving averages.
• Analysts remain broadly positive, with four Buy and two Hold ratings, a “Moderate Buy” consensus, and an average price target of $43.83 despite several recent target-price cuts.
• The company beat quarterly EPS estimates but slightly missed revenue expectations, while insiders sold more than $128 million in stock over the past 90 days.

Shares of Universal Technical Institute Inc (NYSE:UTI - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $20.50 and last traded at $20.97, with a volume of 1304335 shares trading hands. The stock had previously closed at $20.85.

Analyst Ratings Changes

Several research analysts recently commented on UTI shares. Barrington Research raised their price objective on shares of Universal Technical Institute from $36.00 to $42.00 and gave the stock an "outperform" rating in a report on Thursday, May 7th. Rosenblatt Securities reissued a "buy" rating and set a $45.00 target price on shares of Universal Technical Institute in a report on Thursday, August 6th. Truist Financial dropped their target price on Universal Technical Institute from $47.00 to $38.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. B. Riley Financial cut their price target on Universal Technical Institute from $49.00 to $48.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings upgraded Universal Technical Institute from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 25th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Universal Technical Institute currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.83.

Universal Technical Institute Price Performance

The business's 50-day moving average price is $35.28 and its 200 day moving average price is $36.52. The company has a market capitalization of $1.15 billion, a P/E ratio of 33.82, a price-to-earnings-growth ratio of 2.29 and a beta of 1.17. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.46.

Universal Technical Institute (NYSE:UTI - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. Universal Technical Institute had a net margin of 3.88% and a return on equity of 10.18%. The business had revenue of $218.91 million for the quarter, compared to analyst estimates of $220.40 million. Analysts anticipate that Universal Technical Institute Inc will post 0.61 EPS for the current fiscal year.

Insider Activity

In other news, CAO Christine Kline sold 3,500 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $44.42, for a total value of $155,470.00. Following the transaction, the chief accounting officer owned 43,006 shares of the company's stock, valued at approximately $1,910,326.52. This represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Kevin Prehn sold 4,545 shares of the company's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $40.00, for a total transaction of $181,800.00. Following the completion of the transaction, the insider directly owned 27,025 shares in the company, valued at approximately $1,081,000. The trade was a 14.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 3,102,545 shares of company stock valued at $128,449,570 over the last 90 days. Company insiders own 9.80% of the company's stock.

Institutional Trading of Universal Technical Institute

Several institutional investors and hedge funds have recently modified their holdings of UTI. Nykredit A S bought a new stake in shares of Universal Technical Institute during the 2nd quarter valued at about $25,000. Newbridge Financial Services Group Inc. bought a new position in shares of Universal Technical Institute in the second quarter worth approximately $27,000. PNC Financial Services Group Inc. increased its position in shares of Universal Technical Institute by 543.5% in the first quarter. PNC Financial Services Group Inc. now owns 888 shares of the company's stock worth $32,000 after purchasing an additional 750 shares during the last quarter. Clearstead Advisors LLC increased its position in shares of Universal Technical Institute by 187.5% in the fourth quarter. Clearstead Advisors LLC now owns 1,446 shares of the company's stock worth $38,000 after purchasing an additional 943 shares during the last quarter. Finally, NewEdge Advisors LLC purchased a new stake in Universal Technical Institute in the first quarter valued at approximately $57,000. Hedge funds and other institutional investors own 75.67% of the company's stock.

Universal Technical Institute Company Profile

Universal Technical Institute, Inc NYSE: UTI is a leading provider of post-secondary education for students pursuing careers as professional automotive, diesel, collision repair, motorcycle and marine technicians, as well as in welding and CNC machining. The company designs and delivers hands-on training through a blend of classroom instruction and experiential lab work, preparing graduates for entry-level positions in the transportation, manufacturing and energy sectors. UTI's curriculum emphasizes industry-recognized credentials and proprietary coursework developed in collaboration with original equipment manufacturers (OEMs) to ensure alignment with evolving employer needs.

Through a network of campus locations across the United States and select centers in Canada, Universal Technical Institute offers diploma and certificate programs ranging from 36 to 74 weeks in length.

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