Universal Technical Institute (NYSE:UTI) Shares Gap Down - Here's Why

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.

Universal Technical Institute Inc (NYSE:UTI - Get Free Report) shares gapped down before the market opened 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.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on UTI shares. Lake Street Capital restated a "buy" rating and issued a $38.00 price target (up previously from $35.00) on shares of Universal Technical Institute in a research report on Wednesday, May 21st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $36.00 target price on shares of Universal Technical Institute in a research report on Thursday. Wall Street Zen lowered Universal Technical Institute from a "buy" rating to a "hold" rating in a research report on Saturday. Truist Financial lifted their price target on Universal Technical Institute from $37.00 to $40.00 and gave the stock a "buy" rating in a research note on Thursday, May 22nd. Finally, Barrington Research restated an "outperform" rating and issued a $36.00 target price on shares of Universal Technical Institute in a research note on Tuesday, July 29th. One research analyst has rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Universal Technical Institute has an average rating of "Buy" and an average target price of $35.83.

Universal Technical Institute Trading Down 3.9%

The company has a market cap of $1.40 billion, a price-to-earnings ratio of 22.63, a price-to-earnings-growth ratio of 1.68 and a beta of 1.58. The company's fifty day moving average price is $32.33 and its two-hundred day moving average price is $30.02. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.23.

Universal Technical Institute (NYSE:UTI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.12 by $0.07. The business had revenue of $204.30 million during the quarter, compared to analyst estimates of $200.01 million. Universal Technical Institute had a net margin of 7.79% and a return on equity of 22.12%. Research analysts expect that Universal Technical Institute Inc will post 1 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Todd A. Hitchcock sold 27,500 shares of the firm's stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $33.36, for a total transaction of $917,400.00. Following the sale, the chief operating officer directly owned 80,521 shares in the company, valued at $2,686,180.56. This trade represents a 25.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director George W. Brochick sold 6,000 shares of Universal Technical Institute stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $31.84, for a total transaction of $191,040.00. Following the completion of the sale, the director owned 32,516 shares in the company, valued at $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. Company insiders own 15.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Penserra Capital Management LLC bought a new stake in shares of Universal Technical Institute during the 2nd quarter worth approximately $28,000. KBC Group NV acquired a new stake in shares of Universal Technical Institute during the second quarter worth $34,000. PNC Financial Services Group Inc. increased its position in shares of Universal Technical Institute by 17,142.9% during the second quarter. PNC Financial Services Group Inc. now owns 1,207 shares of the company's stock worth $41,000 after buying an additional 1,200 shares during the period. Covestor Ltd increased its position in shares of Universal Technical Institute by 24.4% during the fourth quarter. Covestor Ltd now owns 1,977 shares of the company's stock worth $51,000 after buying an additional 388 shares during the period. Finally, CWM LLC increased its position in shares of Universal Technical Institute by 105.0% during the first quarter. CWM LLC now owns 2,167 shares of the company's stock worth $56,000 after buying an additional 1,110 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 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.