Universal Technical Institute (NYSE:UTI) Shares Up 6% - Here's What Happened

Key Points

• Universal Technical Institute shares rose 6% on Wednesday, trading as high as $44.18 after closing at $41.66 the prior day. Trading volume was below average, with about 694,000 shares changing hands.
• Analyst sentiment has been supportive, with Rosenblatt Securities raising its price target to $45 and several firms maintaining buy or hold ratings. The stock now carries a consensus rating of “Moderate Buy” and a target price of $44.25.
• The company recently reported quarterly EPS of $0.01 on revenue of $221.4 million, roughly in line with expectations. Institutional ownership remains high at 75.67%, even as some insiders have sold shares in recent months.

Shares of Universal Technical Institute Inc (NYSE:UTI - Get Free Report) shot up 6% during trading on Wednesday . The company traded as high as $44.18 and last traded at $44.14. 694,122 shares were traded during mid-day trading, a decline of 18% from the average session volume of 847,013 shares. The stock had previously closed at $41.66.

Wall Street Analyst Weigh In

A number of research firms have issued reports on UTI. 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. Rosenblatt Securities lifted their price target on shares of Universal Technical Institute from $36.00 to $45.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Griffin Securities set a $49.00 price objective on shares of Universal Technical Institute in a report on Thursday, April 30th. B. Riley Financial reaffirmed a "buy" rating on shares of Universal Technical Institute in a research note on Thursday, April 30th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Universal Technical Institute in a research report on Wednesday, May 6th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $44.25.

Universal Technical Institute Stock Up 7.5%

The firm's 50 day moving average is $37.41 and its two-hundred day moving average is $31.77. The firm has a market cap of $2.47 billion, a P/E ratio of 57.73, a price-to-earnings-growth ratio of 3.63 and a beta of 1.25. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.38.

Universal Technical Institute (NYSE:UTI - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.01 EPS for the quarter. The firm had revenue of $221.40 million during the quarter, compared to the consensus estimate of $221.61 million. Universal Technical Institute had a net margin of 4.91% and a return on equity of 13.02%. As a group, research analysts anticipate that Universal Technical Institute Inc will post 0.76 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Linda J. Srere sold 15,000 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $36.59, for a total transaction of $548,850.00. Following the sale, the director owned 127,564 shares of the company's stock, valued at approximately $4,667,566.76. This trade represents a 10.52% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director George W. Brochick sold 5,000 shares of Universal Technical Institute stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $36.59, for a total value of $182,950.00. Following the transaction, the director owned 27,516 shares in the company, valued at approximately $1,006,810.44. This represents a 15.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 30,000 shares of company stock valued at $1,079,200. 9.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Universal Technical Institute

Several institutional investors and hedge funds have recently modified their holdings of the business. Envestnet Asset Management Inc. boosted its holdings in shares of Universal Technical Institute by 68.5% in the third quarter. Envestnet Asset Management Inc. now owns 152,499 shares of the company's stock valued at $4,964,000 after buying an additional 61,971 shares during the period. Chatham Capital Group Inc. increased its position in shares of Universal Technical Institute by 73.3% during the fourth quarter. Chatham Capital Group Inc. now owns 68,512 shares of the company's stock worth $1,790,000 after acquiring an additional 28,972 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Universal Technical Institute by 4.3% during the third quarter. Vanguard Group Inc. now owns 3,456,452 shares of the company's stock worth $112,508,000 after acquiring an additional 141,426 shares during the period. Pullen Investment Management LLC lifted its position in Universal Technical Institute by 129.7% in the 4th quarter. Pullen Investment Management LLC now owns 51,052 shares of the company's stock valued at $1,334,000 after acquiring an additional 28,831 shares in the last quarter. Finally, Granahan Investment Management LLC lifted its position in Universal Technical Institute by 107.7% in the 3rd quarter. Granahan Investment Management LLC now owns 124,246 shares of the company's stock valued at $4,044,000 after acquiring an additional 64,421 shares in the last quarter. 75.67% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.