Universal Technical Institute Inc (NYSE:UTI) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Six brokerages collectively rate Universal Technical Institute “Moderate Buy,” with four buy ratings and two holds. Their average 12-month price target is $43.83, well above the reported $22.36 share price.
• UTI slightly exceeded quarterly earnings expectations, reporting $0.04 EPS versus a $0.02 consensus estimate, though revenue of $218.91 million came in below the $220.40 million forecast.
• Insider selling has been substantial: Insiders sold more than 3.1 million shares worth approximately $128.4 million over the past 90 days, while institutional investors own 75.67% of the company.

Universal Technical Institute Inc (NYSE:UTI - Get Free Report) has been given an average recommendation of "Moderate Buy" by the six brokerages that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $43.8333.

A number of equities analysts have recently commented on the company. Northland Securities set a $41.00 price target on Universal Technical Institute in a report on Thursday, May 7th. B. Riley Financial reduced their price objective on Universal Technical Institute from $49.00 to $48.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Rosenblatt Securities reiterated a "buy" rating and issued a $45.00 target price on shares of Universal Technical Institute in a research report on Thursday, August 6th. Barrington Research boosted their target price on Universal Technical Institute from $36.00 to $42.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Finally, Truist Financial dropped their target price on shares of Universal Technical Institute from $47.00 to $38.00 and set a "buy" rating for the company in a report on Thursday, August 6th.

Universal Technical Institute Stock Performance

NYSE UTI opened at $22.36 on Monday. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of 36.06, a P/E/G ratio of 2.45 and a beta of 1.25. The firm's 50 day simple moving average is $38.10 and its 200 day simple moving average is $36.82. Universal Technical Institute has a 1 year low of $21.29 and a 1 year high of $51.34.

Universal Technical Institute (NYSE:UTI - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $220.40 million. As a group, research analysts expect that Universal Technical Institute will post 0.61 earnings per share for the current fiscal year.

Insider Activity at Universal Technical Institute

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

Institutional Investors Weigh In On Universal Technical Institute

Hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in Universal Technical Institute in the 2nd quarter worth about $323,080,000. Coliseum Capital Management LLC boosted its stake in shares of Universal Technical Institute by 46.2% during the fourth quarter. Coliseum Capital Management LLC now owns 3,971,440 shares of the company's stock valued at $103,774,000 after purchasing an additional 1,255,173 shares in the last quarter. Wasatch Advisors LP grew its holdings in shares of Universal Technical Institute by 22.5% during the third quarter. Wasatch Advisors LP now owns 2,361,019 shares of the company's stock worth $76,851,000 after purchasing an additional 433,824 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Universal Technical Institute by 132.9% during the fourth quarter. Thrivent Financial for Lutherans now owns 1,998,354 shares of the company's stock worth $52,217,000 after purchasing an additional 1,140,465 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD increased its stake in shares of Universal Technical Institute by 65.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,599,534 shares of the company's stock valued at $41,797,000 after buying an additional 631,070 shares during the period. Institutional investors and hedge funds 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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