Universal Technical Institute (NYSE:UTI) Earns "Outperform" Rating from Barrington Research

Key Points

• Barrington Research reissued an "Outperform" rating on UTI with a $36 price target (about a 6.5% implied downside), while the consensus is a Moderate Buy (4 Buys, 2 Holds) and an average target of $37.50.
• UTI beat Q4 expectations, reporting $0.23 EPS versus $0.15 consensus and $220.8M in revenue, and trades around $38.52 with a market cap near $2.12B and a P/E of ~39.7.
• Insiders sold 145,961 shares (~$5.25M) in the last quarter — including EVP Sherrell Smith and COO Todd Hitchcock — leaving insiders with roughly 9.8% ownership.

Universal Technical Institute (NYSE:UTI - Get Free Report)'s stock had its "outperform" rating reissued by analysts at Barrington Research in a report issued on Friday,Benzinga reports. They presently have a $36.00 price objective on the stock. Barrington Research's price target points to a potential downside of 6.53% from the stock's current price.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen upgraded shares of Universal Technical Institute from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Zacks Research upgraded shares of Universal Technical Institute from a "strong sell" rating to a "hold" rating in a research report on Friday, February 6th. Weiss Ratings cut shares of Universal Technical Institute from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 6th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $36.00 price objective on shares of Universal Technical Institute in a research report on Thursday, February 5th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Universal Technical Institute presently has an average rating of "Moderate Buy" and an average price target of $37.50.

Universal Technical Institute Price Performance

Universal Technical Institute stock traded up $0.94 during mid-day trading on Friday, reaching $38.52. 190,858 shares of the company's stock traded hands, compared to its average volume of 722,015. The company has a market cap of $2.12 billion, a price-to-earnings ratio of 39.69, a PEG ratio of 3.06 and a beta of 1.33. The stock has a 50 day moving average of $34.59 and a two-hundred day moving average of $30.36. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.29. Universal Technical Institute has a 12-month low of $21.29 and a 12-month high of $40.41.

Universal Technical Institute (NYSE:UTI - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.08. The company had revenue of $220.84 million for the quarter, compared to the consensus estimate of $216.65 million. Universal Technical Institute had a net margin of 6.28% and a return on equity of 16.98%. Equities analysts forecast that Universal Technical Institute will post 1 earnings per share for the current year.

Insider Transactions at Universal Technical Institute

In other news, EVP Sherrell Smith sold 30,000 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $36.99, for a total value of $1,109,700.00. Following the transaction, the executive vice president directly owned 129,375 shares in the company, valued at approximately $4,785,581.25. This represents a 18.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Todd A. Hitchcock sold 16,500 shares of the stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $37.33, for a total transaction of $615,945.00. Following the transaction, the chief operating officer owned 104,084 shares in the company, valued at approximately $3,885,455.72. The trade was a 13.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 145,961 shares of company stock valued at $5,248,127. Company insiders own 9.80% of the company's stock.

Hedge Funds Weigh In On Universal Technical Institute

Several hedge funds and other institutional investors have recently modified their holdings of UTI. Newbridge Financial Services Group Inc. acquired a new position in Universal Technical Institute in the 2nd quarter worth approximately $27,000. Clearstead Advisors LLC increased its holdings in Universal Technical Institute by 187.5% in the 4th quarter. Clearstead Advisors LLC now owns 1,446 shares of the company's stock worth $38,000 after buying an additional 943 shares during the period. NewEdge Advisors LLC acquired a new stake in shares of Universal Technical Institute during the 1st quarter worth approximately $57,000. State of Alaska Department of Revenue acquired a new stake in shares of Universal Technical Institute during the 3rd quarter worth approximately $92,000. Finally, SBI Securities Co. Ltd. grew its stake 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 worth $142,000 after purchasing an additional 5,310 shares during the period. 75.67% of the stock is owned by hedge funds and other institutional investors.

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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