Short Interest in Universal Technical Institute Inc (NYSE:UTI) Rises By 63.3%

Key Points

• Short interest in Universal Technical Institute surged 63.3% in May to 5.38 million shares, representing about 10.8% of the float. The stock’s days-to-cover ratio stands at 2.6 days.
• UTI shares fell 6.3% and opened at $36.68, near the middle of its 52-week range of $21.29 to $45.74. The company has a market cap of about $2.02 billion and a forward-looking analyst consensus price target of $44.25.
• Insiders sold heavily in recent months, including a 3 million-share sale by Director Coliseum Capital Management and additional selling by CAO Christine Kline. Over the last 90 days, insiders sold 3,018,500 shares worth about $124.9 million.

Universal Technical Institute Inc (NYSE:UTI - Get Free Report) was the target of a large increase in short interest during the month of May. As of May 29th, there was short interest totaling 5,377,844 shares, an increase of 63.3% from the May 14th total of 3,293,481 shares. Based on an average daily trading volume, of 2,104,350 shares, the days-to-cover ratio is currently 2.6 days. Currently, 10.8% of the shares of the company are short sold.

Universal Technical Institute Trading Down 6.3%

UTI stock opened at $36.68 on Tuesday. Universal Technical Institute has a 1-year low of $21.29 and a 1-year high of $45.74. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.17 and a quick ratio of 1.17. The company has a market capitalization of $2.02 billion, a price-to-earnings ratio of 47.64, a PEG ratio of 3.43 and a beta of 1.25. The business has a 50 day simple moving average of $38.19 and a two-hundred day simple moving average of $32.80.

Universal Technical Institute (NYSE:UTI - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 earnings per share for the quarter. Universal Technical Institute had a return on equity of 13.02% and a net margin of 4.91%.The business had revenue of $221.40 million during the quarter, compared to the consensus estimate of $221.61 million. Research analysts anticipate that Universal Technical Institute will post 0.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other Universal Technical Institute news, Director Coliseum Capital Management, L sold 3,000,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $41.40, for a total value of $124,200,000.00. Following the completion of the transaction, the director owned 971,440 shares of the company's stock, valued at approximately $40,217,616. The trade was a 75.54% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Christine Kline sold 3,500 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $44.42, for a total value of $155,470.00. Following the completion of the transaction, the chief accounting officer directly owned 43,006 shares of the company's stock, valued at approximately $1,910,326.52. This trade represents a 7.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 3,018,500 shares of company stock valued at $124,904,320. 9.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of UTI. Newbridge Financial Services Group Inc. bought a new position in shares of Universal Technical Institute during the 2nd quarter valued at approximately $27,000. PNC Financial Services Group Inc. boosted its position in shares of Universal Technical Institute by 543.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 888 shares of the company's stock valued at $32,000 after acquiring an additional 750 shares during the last quarter. Clearstead Advisors LLC boosted its position in shares of Universal Technical Institute by 187.5% during the 4th quarter. Clearstead Advisors LLC now owns 1,446 shares of the company's stock valued at $38,000 after acquiring an additional 943 shares during the last quarter. NewEdge Advisors LLC bought a new position in shares of Universal Technical Institute during the 1st quarter valued at approximately $57,000. Finally, SBI Securities Co. Ltd. boosted its position in shares of Universal Technical Institute by 4,500.0% during the 4th quarter. SBI Securities Co. Ltd. now owns 5,428 shares of the company's stock valued at $142,000 after acquiring an additional 5,310 shares during the last quarter. 75.67% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

UTI has been the subject of several research reports. Wall Street Zen raised shares of Universal Technical Institute from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. B. Riley Financial reiterated a "buy" rating on shares of Universal Technical Institute in a research note on Thursday, April 30th. Weiss Ratings downgraded Universal Technical Institute from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, June 5th. Rosenblatt Securities boosted their price objective on Universal Technical Institute from $36.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Northland Securities set a $41.00 price objective on Universal Technical Institute in a research note on Thursday, May 7th. Three 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 MarketBeat, Universal Technical Institute presently has an average rating of "Moderate Buy" and a consensus price target of $44.25.

About Universal Technical Institute

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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