B. Riley Raises Earnings Outlook for Universal Technical Institute

Equities researchers at B. Riley Research have upgraded their earnings per share (EPS) estimates for Universal Technical Institute Inc. (NYSE: UTI) for the fourth quarter of 2026. In a note published on November 20, 2023, analyst G. Boss revised the forecast to $0.36 per share, an increase from the previous estimate of $0.34. This adjustment reflects a positive outlook for the company, aligning with the broader consensus estimate for the current fiscal year’s earnings, which stands at $1.00 per share.

B. Riley also provided projections for Universal Technical Institute’s earnings for fiscal year 2027, estimating an EPS of $0.87. This forecast comes as part of a series of assessments from various brokerages regarding the company’s stock performance. On the same day, Barrington Research reaffirmed an “outperform” rating with a target price of $36.00. Similarly, Rosenblatt Securities maintained a “buy” rating with the same target price.

Analysts have had mixed views on Universal Technical Institute. While Wall Street Zen downgraded the stock from “buy” to “hold” in a report on September 21, 2023, Zacks Research took a more drastic step, lowering its rating from “hold” to “strong sell” on October 6, 2023. In contrast, Weiss Ratings upheld a “buy (b-)” rating as of November 19, 2023. Currently, the consensus rating for the stock is classified as “Moderate Buy,” with an average price target of $35.83 according to MarketBeat.com.

Recent Stock Performance and Financial Results

As of November 20, 2023, shares of Universal Technical Institute opened at $21.80, having reached a 12-month low of $21.29 and a high of $36.32. The company boasts a market capitalization of $1.19 billion, a price-to-earnings ratio of 19.12, and a PEG ratio of 2.27. It has a beta of 1.55, indicating higher volatility relative to the market.

In its latest quarterly earnings report, released on November 19, 2023, Universal Technical Institute reported earnings of $0.34 per share, exceeding analysts’ consensus estimates of $0.26 by $0.08. The company generated $222.44 million in revenue, surpassing predictions of $219.33 million. The firm also noted a net margin of 7.79% and a return on equity of 22.12%. For fiscal year 2026, Universal Technical Institute has set guidance for EPS between $0.710 and $0.800.

Institutional Investment Activity

Recent activity among institutional investors indicates growing interest in Universal Technical Institute. Verdence Capital Advisors LLC raised its stake by 3.4% during the third quarter, now holding 11,259 shares valued at approximately $383,000. Similarly, Verition Fund Management LLC increased its holding by 2.1%, acquiring an additional 441 shares to hold a total of 21,034 shares worth about $685,000.

Other notable increases include Engineers Gate Manager LP, which boosted its position by 4.3%, and SkyView Investment Advisors LLC, which grew its stake by 1.2%. Additionally, the New York State Teachers Retirement System increased its holdings by 17.0%, now owning 4,254 shares valued at $144,000. Currently, institutional investors collectively own 75.67% of Universal Technical Institute’s stock.

Universal Technical Institute operates educational programs in transportation, skilled trades, and healthcare through its various brands, including Universal Technical Institute and Motorcycle Mechanics Institute. This diversified approach aims to meet the growing demand for skilled professionals in these sectors, positioning the company for potential long-term growth in an evolving marketplace.