Universal Technical Institute (NYSE:UTI) Stock Price Down 8.4% - Time to Sell?

Key Points

• UTI shares fell 8.4% to $22.25 in heavy trading, with volume roughly 90% above average and the stock trading well below its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with four Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $43.83. UTI slightly exceeded quarterly EPS expectations, though revenue came in below estimates.
• Insiders sold more than 3.1 million shares worth approximately $128.4 million during the quarter, including a 3-million-share sale by Coliseum Capital Management, while institutional investors collectively own 75.67% of the company.

Shares of Universal Technical Institute Inc (NYSE:UTI - Get Free Report) dropped 8.4% during mid-day trading on Thursday . The stock traded as low as $22.23 and last traded at $22.25. 1,904,835 shares were traded during trading, an increase of 90% from the average session volume of 1,003,578 shares. The stock had previously closed at $24.30.

Analyst Ratings Changes

Several research firms recently commented on UTI. B. Riley Financial dropped their price objective on Universal Technical Institute from $49.00 to $48.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Griffin Securities set a $49.00 target price on Universal Technical Institute in a research report on Thursday, April 30th. Truist Financial lowered their target price on Universal Technical Institute from $47.00 to $38.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Barrington Research increased their price target on Universal Technical Institute from $36.00 to $42.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Finally, Northland Securities set a $41.00 price objective on Universal Technical Institute in a report on Thursday, May 7th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Universal Technical Institute currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.83.

Universal Technical Institute Stock Performance

The company's fifty day moving average is $38.78 and its 200 day moving average is $36.90. The company has a market capitalization of $1.23 billion, a P/E ratio of 35.89, a P/E/G ratio of 2.75 and a beta of 1.25. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.46.

Universal Technical Institute (NYSE:UTI - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.02. The business had revenue of $218.91 million during the quarter, compared to analyst estimates of $220.40 million. Universal Technical Institute had a net margin of 3.88% and a return on equity of 10.18%. As a group, equities analysts anticipate that Universal Technical Institute Inc will post 0.61 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Coliseum Capital Management, L sold 3,000,000 shares of the company's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $41.40, for a total transaction of $124,200,000.00. Following the sale, the director directly owned 971,440 shares in the company, valued at $40,217,616. This represents a 75.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Christine Kline sold 3,500 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $44.42, for a total transaction of $155,470.00. Following the completion of the transaction, the chief accounting officer owned 43,006 shares of the company's stock, valued at $1,910,326.52. This trade represents a 7.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 3,102,545 shares of company stock worth $128,449,570. Company insiders own 9.80% of the company's stock.

Institutional Investors Weigh In On Universal Technical Institute

Institutional investors and hedge funds have recently made changes to their positions in the business. Thrivent Financial for Lutherans raised its holdings in shares of Universal Technical Institute by 132.9% in the 4th quarter. Thrivent Financial for Lutherans now owns 1,998,354 shares of the company's stock valued at $52,217,000 after acquiring an additional 1,140,465 shares in the last quarter. UBS Group AG grew its holdings in shares of Universal Technical Institute by 89.0% during the fourth quarter. UBS Group AG now owns 231,717 shares of the company's stock worth $6,055,000 after purchasing an additional 109,100 shares in the last quarter. Needham Investment Management LLC grew its holdings in shares of Universal Technical Institute by 46.8% during the fourth quarter. Needham Investment Management LLC now owns 807,500 shares of the company's stock worth $21,100,000 after purchasing an additional 257,500 shares in the last quarter. MYDA Advisors LLC bought a new position in shares of Universal Technical Institute in the fourth quarter worth approximately $1,322,000. Finally, Manatuck Hill Partners LLC increased its position in shares of Universal Technical Institute by 342.8% in the fourth quarter. Manatuck Hill Partners LLC now owns 264,800 shares of the company's stock worth $6,919,000 after purchasing an additional 205,000 shares during the last quarter. Hedge funds and other institutional investors own 75.67% of the company's stock.

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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