Universal Technical Institute (UTI) Rating Lowered to Sell at Zacks Investment Research

Universal Technical Institute (NYSE:UTI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “Universal Technical reported wider-than-expected loss in the final quarter of fiscal 2017, primarily because of sluggish enrollments. Revenues of $81.3 million in the fourth quarter fell 6.4% from the prior-year quarter, owing to a decrease of 8.5% in average student enrollment. Average undergraduate full-time enrollments also reported a decline of 6.2% in the quarter. Also, shares of the company have underperformed the industry year to date. That said, operating expenses contracted 10.5% on lower compensation expenses and improved operating efficiencies following the implementation of the Financial Improvement Plan. Also, the company’s operating loss decreased in the quarter, mirroring significant cost reductions and an increase of $0.9 million in operating income from the Long Beach campus.”

Several other equities research analysts also recently issued reports on the company. Piper Jaffray Companies reaffirmed a “hold” rating and set a $6.00 price target on shares of Universal Technical Institute in a report on Tuesday, October 17th. ValuEngine downgraded Universal Technical Institute from a “hold” rating to a “sell” rating in a report on Friday, September 1st.

Universal Technical Institute (NYSE:UTI) traded down $0.18 during trading hours on Thursday, hitting $2.67. 40,600 shares of the company traded hands, compared to its average volume of 46,613. Universal Technical Institute has a twelve month low of $2.59 and a twelve month high of $5.38. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.70 and a quick ratio of 1.92.

Universal Technical Institute (NYSE:UTI) last announced its quarterly earnings results on Thursday, November 30th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.11). Universal Technical Institute had a negative net margin of 2.51% and a negative return on equity of 5.65%. The business had revenue of $81.33 million for the quarter. sell-side analysts anticipate that Universal Technical Institute will post -0.05 EPS for the current year.

A number of institutional investors have recently made changes to their positions in UTI. Alyeska Investment Group L.P. lifted its holdings in Universal Technical Institute by 52.5% during the 3rd quarter. Alyeska Investment Group L.P. now owns 575,653 shares of the company’s stock valued at $1,998,000 after purchasing an additional 198,298 shares during the last quarter. Quantum Capital Management lifted its holdings in Universal Technical Institute by 1,477.3% during the 3rd quarter. Quantum Capital Management now owns 173,177 shares of the company’s stock valued at $601,000 after purchasing an additional 162,198 shares during the last quarter. Janus Henderson Group PLC acquired a new stake in shares of Universal Technical Institute during the second quarter worth $426,000. Macquarie Group Ltd. acquired a new stake in shares of Universal Technical Institute during the third quarter worth $289,000. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Universal Technical Institute by 7.9% during the second quarter. Dimensional Fund Advisors LP now owns 813,571 shares of the company’s stock worth $2,904,000 after buying an additional 59,594 shares in the last quarter. 57.73% of the stock is owned by institutional investors and hedge funds.

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Universal Technical Institute Company Profile

Universal Technical Institute, Inc is a provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time enrollment and graduates. The Company offers undergraduate degree or diploma programs at approximately 12 campuses across the United States under the banner of various brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, MMI) and NASCAR Technical Institute (NASCAR Tech).

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