Universal Technical Institute Inc (NYSE:UTI) Short Interest Update

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 large increase in short interest in the month of July. As of July 15th, there was short interest totaling 2,600,000 shares, anincreaseof433,233.3% from the June 30th total of 600 shares. Based on an average daily volume of 768,100 shares, the days-to-cover ratio is currently 3.4 days. Based on an average daily volume of 768,100 shares, the days-to-cover ratio is currently 3.4 days.

Insider Transactions at Universal Technical Institute

In related news, Director George W. Brochick sold 6,000 shares of the company's stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $31.84, for a total value of $191,040.00. Following the completion of the sale, the director directly owned 32,516 shares of the company's stock, valued at $1,035,309.44. This represents a 15.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Todd A. Hitchcock sold 27,500 shares of the company's stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $33.36, for a total value of $917,400.00. Following the sale, the chief operating officer directly owned 80,521 shares of the company's stock, valued at approximately $2,686,180.56. This represents a 25.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. 15.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Universal Technical Institute

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC increased its stake 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 purchasing an additional 8,416 shares in the last quarter. Calamos Advisors LLC purchased a new position in Universal Technical Institute in the 1st quarter valued at approximately $3,085,000. Teacher Retirement System of Texas increased its stake 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 purchasing an additional 18,320 shares in the last quarter. Ameriprise Financial Inc. increased its stake 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 purchasing an additional 12,017 shares in the last quarter. Finally, Pullen Investment Management LLC increased its stake 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 purchasing an additional 30,250 shares in the last quarter. 75.67% of the stock is owned by hedge funds and other institutional investors.

Universal Technical Institute Stock Performance

Shares of UTI stock traded up $0.21 during trading hours on Monday, reaching $32.28. 24,066 shares of the company's stock were exchanged, compared to its average volume of 735,849. The company has a market cap of $1.76 billion, a P/E ratio of 31.04, a price-to-earnings-growth ratio of 2.02 and a beta of 1.58. The company's 50 day moving average is $33.07 and its two-hundred day moving average is $29.90. Universal Technical Institute has a 1 year low of $15.14 and a 1 year high of $36.32. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.07 and a quick ratio of 1.07.

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

Wall Street Analysts Forecast Growth

UTI has been the subject of several analyst reports. Rosenblatt Securities reaffirmed a "buy" rating and set a $36.00 price objective on shares of Universal Technical Institute in a research note on Thursday, May 8th. Lake Street Capital reaffirmed a "buy" rating and set a $38.00 price objective (up from $35.00) on shares of Universal Technical Institute in a research note on Wednesday, May 21st. Truist Financial upped their price objective on Universal Technical Institute from $37.00 to $40.00 and gave the company a "buy" rating in a research note on Thursday, May 22nd. Finally, Barrington Research reaffirmed an "outperform" rating and set a $36.00 price objective on shares of Universal Technical Institute in a research note on Tuesday, July 29th. Six investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Universal Technical Institute currently has an average rating of "Buy" and an average 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.