B. Riley Upgrades Universal Technical Institute to Strong-Buy Rating

On Thursday, shares of Universal Technical Institute (NYSE:UTI) received a significant upgrade from B. Riley, which has raised the company's rating to a "strong-buy." This announcement comes as part of a research report aimed at clients and investors, providing confidence in the company's stock performance going forward.

Along with B. Riley's positive outlook, several other equity research analysts have also been reviewing Universal Technical Institute. For instance, Northland Securities recently increased their target price for UTI from $30.00 to $34.00, assigning an "outperform" rating on February 6th. Similarly, Barrington Research raised their price target from $30.00 to $35.00, also giving the company an "outperform" rating on the same day. Furthermore, Rosenblatt Securities adjusted their price objective upward from $30.00 to $36.00, indicating a "buy" rating. Lake Street Capital has also increased its target from $22.00 to $31.00 and labeled the stock as a "buy." Collectively, six investment analysts now rate the stock as a buy, with one issuing a strong buy designation. According to MarketBeat, the average rating for UTI shares stands at "Buy," with a consensus price target estimated at $32.17.

Universal Technical Institute's Stock Performance

When the market opened on Thursday, shares of UTI were priced at $25.36. The stock has demonstrated varying performance, with a 50-day moving average of $27.30 and a 200-day moving average at $23.12. Universal Technical Institute boasts a market capitalization of $1.38 billion and features a price-to-earnings ratio of 26.14. Additionally, its PEG ratio is 1.92, and the stock exhibits a beta of 1.49. Financially, the company maintains a current ratio of 1.14, a quick ratio also at 1.14, and a manageable debt-to-equity ratio of 0.42. Over the past year, the company's shares have reached a low of $13.66 and a high of $30.56.

Universal Technical Institute recently announced its quarterly earnings, revealing that it achieved an earnings per share (EPS) of $0.40, which surpasses analysts’ expectations of $0.18 by $0.22. The company recorded a return on equity of 21.25% and has a net margin of 7.08%. Looking ahead, analysts project that Universal Technical Institute will report an EPS of 1 for the current fiscal year.

Insider Trading Activity

In other developments, Sherrell Smith, the executive vice president of the company, sold 10,000 shares on March 21st at an average price of $26.95, realizing a total of $269,500 from the transaction. After the sale, Smith continued to hold 157,663 shares, valued at about $4.25 million. This event signifies a 5.96% reduction in Smith's ownership stake in the company. The transaction details have been documented in a filing with the SEC. Additionally, Director George W. Brochick sold 8,000 shares at an average price of $27.59, amounting to $220,720. Following this sale, Brochick maintains ownership of 34,917 shares, valued at approximately $963,360, reflecting an 18.64% decrease in their holding. Over the previous quarter, insiders sold a total of 94,219 shares, valued at $2.57 million. Notably, corporate insiders hold 15.10% of the company’s stock.

Institutional Investor Activities

A variety of institutional investors have made recent adjustments to their investments in UTI. In the fourth quarter, Covestor Ltd increased its stake by 24.4%, now holding 1,977 shares valued at $51,000 after acquiring 388 additional shares. Arcadia Investment Management Corp MI has also entered a new position with UTI shares, valued at approximately $79,000. Quarry LP boosted its holdings by a staggering 380.6% in the third quarter, now owning 3,859 shares worth about $63,000. Other institutions, such as Lazard Asset Management LLC and Aquatic Capital Management LLC, have also taken new positions, increasing the percentage of institutional ownership, which now stands at 75.67%.

About Universal Technical Institute

Universal Technical Institute, Inc. specializes in providing education programs focused on transportation, skilled trades, and healthcare within the United States. The company operates under two distinct segments: UTI and Concorde, offering a diverse array of certificate, diploma, or degree programs under various brands associated with technical and vocational training, including the Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology.

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