Universal Technical Institute (UTI) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Universal Technical Institute (NYSE:UTI) from a buy rating to a hold rating in a research report sent to investors on Thursday morning, Zacks.com reports.

According to Zacks, “Shares of Universal Technical have outperformed its industry in the past year. In second-quarter of fiscal 2019, although the company incurred wider-than-expected adjusted loss of 27 cents per share, the figure was narrower sequentially. Revenues increased 1.3% on a year-over-year basis, backed by higher average full-time enrollment despite one less earning day. Moreover, total starts rose 11.2% year over year. The company remains on track with its multiyear transformation plan to drive student growth, including optimization of its media mix, conducting career workshops and working with industry-leading partners along with building up new campus and program initiatives. Yet, higher expenses related to these initiatives raise a concern. Loss estimates for fiscal 2019 have also widened, reflecting analyst's concern surrounding the stock.”

Separately, ValuEngine lowered Universal Technical Institute from a buy rating to a hold rating in a research note on Monday, April 1st.

Shares of UTI opened at $3.40 on Thursday. The firm has a market capitalization of $86.69 million, a price-to-earnings ratio of -2.10 and a beta of 1.63. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.19 and a current ratio of 1.15. Universal Technical Institute has a 1 year low of $1.86 and a 1 year high of $4.20.

Several institutional investors and hedge funds have recently modified their holdings of UTI. Parallel Advisors LLC bought a new stake in shares of Universal Technical Institute in the fourth quarter valued at $45,000. 22NW LP raised its stake in shares of Universal Technical Institute by 80.7% during the 4th quarter. 22NW LP now owns 2,249,966 shares of the company’s stock valued at $8,212,000 after purchasing an additional 1,005,000 shares during the period. BlackRock Inc. raised its stake in shares of Universal Technical Institute by 3.6% during the 4th quarter. BlackRock Inc. now owns 519,982 shares of the company’s stock valued at $1,897,000 after purchasing an additional 17,878 shares during the period. Bank of New York Mellon Corp raised its stake in shares of Universal Technical Institute by 29.6% during the 4th quarter. Bank of New York Mellon Corp now owns 25,482 shares of the company’s stock valued at $93,000 after purchasing an additional 5,824 shares during the period. Finally, Northern Trust Corp raised its stake in shares of Universal Technical Institute by 163.9% during the 4th quarter. Northern Trust Corp now owns 143,804 shares of the company’s stock valued at $525,000 after purchasing an additional 89,307 shares during the period. Hedge funds and other institutional investors own 61.03% of the company’s stock.

About Universal Technical Institute

Universal Technical Institute, Inc provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United States. It offers certificate, diploma, or degree programs; and specialized technical education programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute.

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