Universal Technical Institute (NYSE:UTI) Shares Gap Down - Should You Sell?

Key Points

• Universal Technical Institute (UTI) shares gapped down from $33.42 to $31.56 before trading at $29.24, indicating significant market activity.
• Despite the drop in stock price, several analysts have reaffirmed a "buy" rating for UTI, with price targets ranging from $36.00 to $40.00, reflecting confidence in the company’s future performance.
• Recent earnings results showed UTI reporting $0.19 earnings per share, surpassing analysts' expectations, which indicates a solid financial performance amid stock price fluctuations.

Shares of Universal Technical Institute Inc (NYSE:UTI - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $33.42, but opened at $31.56. Universal Technical Institute shares last traded at $29.24, with a volume of 277,080 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Lake Street Capital restated a "buy" rating and set a $38.00 target price (up previously from $35.00) on shares of Universal Technical Institute in a research report on Wednesday, May 21st. Rosenblatt Securities reiterated a "buy" rating and set a $36.00 price target on shares of Universal Technical Institute in a research report on Thursday. Wall Street Zen lowered shares of Universal Technical Institute from a "buy" rating to a "hold" rating in a research report on Saturday. Barrington Research reissued an "outperform" rating and issued a $36.00 price objective on shares of Universal Technical Institute in a research note on Tuesday, July 29th. Finally, Truist Financial increased their price objective on shares of Universal Technical Institute from $37.00 to $40.00 and gave the company a "buy" rating in a research note on Thursday, May 22nd. One equities research analyst has rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $35.83.

Universal Technical Institute Trading Down 1.1%

The firm has a market capitalization of $1.46 billion, a PE ratio of 23.53, a price-to-earnings-growth ratio of 1.69 and a beta of 1.58. The company's 50-day simple moving average is $32.54 and its 200 day simple moving average is $29.98. The company has a quick ratio of 1.07, a current ratio of 1.00 and a debt-to-equity ratio of 0.23.

Universal Technical Institute (NYSE:UTI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.07. Universal Technical Institute had a net margin of 7.79% and a return on equity of 22.12%. The firm had revenue of $204.30 million for the quarter, compared to the consensus estimate of $200.01 million. As a group, sell-side analysts expect that Universal Technical Institute Inc will post 1 EPS for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Universal Technical Institute

Several large investors have recently modified their holdings of UTI. Penserra Capital Management LLC purchased a new position in Universal Technical Institute in the second quarter worth $28,000. KBC Group NV purchased a new position in Universal Technical Institute in the second quarter worth $34,000. PNC Financial Services Group Inc. grew its holdings in Universal Technical Institute by 17,142.9% in the second quarter. PNC Financial Services Group Inc. now owns 1,207 shares of the company's stock valued at $41,000 after purchasing an additional 1,200 shares during the last quarter. Covestor Ltd grew its holdings in Universal Technical Institute by 24.4% in the fourth quarter. Covestor Ltd now owns 1,977 shares of the company's stock valued at $51,000 after purchasing an additional 388 shares during the last quarter. Finally, CWM LLC grew its holdings in Universal Technical Institute by 105.0% in the first quarter. CWM LLC now owns 2,167 shares of the company's stock valued at $56,000 after purchasing an additional 1,110 shares during the last quarter. Hedge funds and other institutional investors own 75.67% of the company's stock.

Universal Technical Institute Company Profile

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.