Universal Technical Institute Inc (NYSE:UTI) Short Interest Up 433,233.3% in July

Key Points

• Universal Technical Institute's short interest surged by 433,233.3% in July, increasing from 600 shares to 2,600,000 shares, leading to a short-interest ratio of 3.4 days based on the average daily volume.
• The company's COO and a director have sold significant amounts of stock, reducing their positions by 25.46% and 15.58% respectively, indicating potential insider selling activity.
• Analysts remain optimistic with six rating the stock as a buy and a consensus target price of $35.83, with recent price objectives set between $36.00 and $40.00.

Universal Technical Institute Inc (NYSE:UTI - Get Free Report) was the recipient of a significant growth in short interest in July. As of July 15th, there was short interest totaling 2,600,000 shares, agrowthof433,233.3% from the June 30th total of 600 shares. Based on an average trading volume of 768,100 shares, the short-interest ratio is currently 3.4 days. Based on an average trading volume of 768,100 shares, the short-interest ratio is currently 3.4 days.

Insider Activity at Universal Technical Institute

In other Universal Technical Institute news, COO Todd A. Hitchcock sold 27,500 shares of the stock in a transaction on Thursday, May 15th. The stock was sold at an average price of $33.36, for a total transaction of $917,400.00. Following the sale, the chief operating officer owned 80,521 shares of the company's stock, valued at approximately $2,686,180.56. This trade represents a 25.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director George W. Brochick sold 6,000 shares of the company's stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $31.84, for a total value of $191,040.00. Following the transaction, the director directly owned 32,516 shares in the company, valued at approximately $1,035,309.44. The trade was a 15.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 15.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC raised its holdings in Universal Technical Institute by 2,671.7% in the 1st quarter. GAMMA Investing LLC now owns 8,731 shares of the company's stock valued at $224,000 after acquiring an additional 8,416 shares during the last quarter. Calamos Advisors LLC acquired a new stake in Universal Technical Institute in the 1st quarter valued at about $3,085,000. Teacher Retirement System of Texas raised its holdings in Universal Technical Institute by 100.5% in the 1st quarter. Teacher Retirement System of Texas now owns 36,553 shares of the company's stock valued at $939,000 after acquiring an additional 18,320 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in Universal Technical Institute by 15.3% in the 4th quarter. Ameriprise Financial Inc. now owns 90,709 shares of the company's stock valued at $2,332,000 after acquiring an additional 12,017 shares during the last quarter. Finally, Pullen Investment Management LLC raised its holdings in Universal Technical Institute by 46.4% in the 4th quarter. Pullen Investment Management LLC now owns 95,410 shares of the company's stock valued at $2,453,000 after acquiring an additional 30,250 shares during the last quarter. 75.67% of the stock is owned by hedge funds and other institutional investors.

Universal Technical Institute Price Performance

Shares of UTI stock traded down $0.22 during mid-day trading on Tuesday, hitting $31.11. 130,386 shares of the stock were exchanged, compared to its average volume of 734,594. The firm has a fifty day moving average of $32.99 and a 200 day moving average of $29.93. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.31. Universal Technical Institute has a 52-week low of $15.14 and a 52-week high of $36.32. The company has a market cap of $1.69 billion, a PE ratio of 29.90, a price-to-earnings-growth ratio of 2.02 and a beta of 1.58.

Universal Technical Institute (NYSE:UTI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. The firm had revenue of $207.45 million for the quarter, compared to analyst estimates of $196.63 million. Universal Technical Institute had a net margin of 7.34% and a return on equity of 21.40%. Research analysts anticipate that Universal Technical Institute will post 1 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Barrington Research reissued an "outperform" rating and issued a $36.00 price objective on shares of Universal Technical Institute in a research report on Tuesday, July 29th. Lake Street Capital reaffirmed a "buy" rating and issued a $38.00 price target (up from $35.00) on shares of Universal Technical Institute in a report on Wednesday, May 21st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $36.00 price target on shares of Universal Technical Institute in a report on Thursday, May 8th. Finally, Truist Financial upped their price target on shares of Universal Technical Institute from $37.00 to $40.00 and gave the company a "buy" rating in a report on Thursday, May 22nd. Six investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Universal Technical Institute has a consensus rating of "Buy" and a consensus target price of $35.83.

About Universal Technical Institute

Universal Technical Institute, Inc provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology.