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

Zacks Investment Research lowered shares of Universal Technical Institute (NYSE:UTI) from a hold rating to a sell rating in a report published on Thursday morning.

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.”

A number of other analysts also recently commented on UTI. ValuEngine downgraded Universal Technical Institute from a hold rating to a sell rating in a report on Friday, September 1st. Piper Jaffray Companies restated a hold rating and set a $6.00 price objective on shares of Universal Technical Institute in a report on Tuesday, October 17th.

Universal Technical Institute (NYSE UTI) opened at $2.66 on Thursday. Universal Technical Institute has a 52 week low of $2.52 and a 52 week high of $4.00. The company has a current ratio of 1.70, a quick ratio of 1.92 and a debt-to-equity ratio of 0.33.

Universal Technical Institute (NYSE:UTI) last issued its quarterly earnings results on Thursday, November 30th. The company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.11). The business had revenue of $81.33 million for the quarter. Universal Technical Institute had a negative return on equity of 5.65% and a negative net margin of 2.51%. analysts anticipate that Universal Technical Institute will post -0.39 earnings per share for the current year.

Hedge funds have recently added to or reduced their stakes in the company. Spark Investment Management LLC acquired a new stake in shares of Universal Technical Institute during the 2nd quarter worth $107,000. Bank of New York Mellon Corp increased its holdings in shares of Universal Technical Institute by 1.0% during the 1st quarter. Bank of New York Mellon Corp now owns 42,122 shares of the company’s stock worth $145,000 after buying an additional 400 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Universal Technical Institute by 4.9% during the 2nd quarter. Goldman Sachs Group Inc. now owns 44,919 shares of the company’s stock worth $160,000 after buying an additional 2,086 shares during the last quarter. Northern Trust Corp increased its holdings in shares of Universal Technical Institute by 2.6% during the 2nd quarter. Northern Trust Corp now owns 52,052 shares of the company’s stock worth $186,000 after buying an additional 1,330 shares during the last quarter. Finally, Macquarie Group Ltd. acquired a new stake in shares of Universal Technical Institute during the 3rd quarter worth $289,000. Institutional investors and hedge funds own 57.73% of the company’s stock.

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About Universal Technical Institute

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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