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UTI $15.94

UTI target price
15.94
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0
Universal Technical Institute, Inc.
Type
Private, For-profit
Traded as NYSE: UTI
Industry Education
Founded 1965
Headquarters Scottsdale, Arizona
Area served
North America
Key people
Kim McWaters CEO
Website www.uti.edu

Universal Technical Institute, Inc. (UTI) is a for-profit nationwide provider of technical education training for students seeking careers in entry level automotive, diesel, collision repair, motorcycle and marine technicians.

Through a campus-based school system, the school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI).

As of June 30, 2016, UTI had more than 10,000 students.

Universal Technical Institute was founded in 1965. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. To address the needs of corporate clients, UTI started providing continuing education and training for technicians in 1980. In 1983, UTI opened a campus in Houston, Texas. In 1988 UT opened their Lisle, Illinois,campus. In 1998, it opened a campus in Rancho Cucamonga, California.

According to SEC documents, UTI worked with original equipment manufacturers (OEMs) in the automotive, diesel, motorcycle and marine industries. The schools were a primary provider of manufacturer-based training programs where they provided technician training programs using the OEMs equipment and vehicles. These organizations included Audi of America; American Honda Motor Co., Inc.; BMW of North America, LLC; Ford Motor Co.; International Truck and Engine Corp.; Jaguar Cars, Inc.; Mercedes-Benz USA, LLC; Mercury Marine; Porsche Cars of North America, Inc.; Volkswagen of America, Inc.; and Volvo Cars of North America, Inc.

In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation.

In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA) NTT provided intensive training seminars to technicians in sectors similar to the sectors that we serve. PTA organized lecture training seminars in markets similar to NTT. The acquisition of NTT and PTA was completed for approximately $50.2 million. The NTT business was discontinued at a loss of $42.9 million. At the time of its Initial Public Offering, UTI carried a debt load of $57.3 million.

At its peak in 2011, UTI had more than 18,000 students. Enrollment has been declining since then.

The 2012 Harkin Commission noted that: "Compared to public colleges offering the same programs, the price of tuition is significantly higher at UTI....The same Certificate costs almost 20 times more at UTI than it does at the public college." UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%.

Universal Technical Institute has limited access to military bases for student recruitment because its programs have not complied with federal government oversight measures.

On September 27, 2016, UTI reported that its President and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as President.

As of June 30, 2016, UTI's enrollment was 10,300 students.

Universal Technical Institute provides technical training for students seeking careers in the automotive, diesel, motorcycle, marine and collision repair industries. UTI has direct relationships with approximately 30 OEM manufacturers, such as Ford, BMW, Mercedes-Benz, Toyota, Cummins, and Harley-Davidson.

NASCAR Technical Institute is located in Mooresville, North Carolina - at the heart of racing country. The school provides course work in engine construction, electrical, fuel and lubrication systems, drive trains, body and chassis fabrication and racing theory principles. Students learn the history and rules and regulations of NASCAR, as well as a Pit Crew training program.

The school provides course work in marine technology with a focus on manufacturer-specific training for Volvo Penta, Honda, Yamaha, Suzuki Outboard, Mercury Marine and other major marine manufacturers.

The school provides course work for a customized career education with Honda, Kawasaki, Suzuki, Yamaha, BMW, and Harley-Davidson manufacturer-specific courses.

In 2011, a former employee filed a lawsuit accusing UTI of violating Title IV regulations that bar incentive compensation for admissions representatives. UTI settled out of court with the employee.

UTI has been under investigation by the Massachusetts Attorney General for allegedly submitting false claims "to the Commonwealth relating to student loans, guarantees and grants provided to students at our Norwood, Massachusetts campus."

UTI is also under investigation by the U.S. Attorney’s Office for the Western District of North Carolina.

In 2015, one program at the Norwood, Massachusetts campus did not achieve the Accrediting Commission of Career Schools and Colleges' (ACCSC) graduation or employment benchmarks and was placed on heightened monitoring status.

Q reports

Period Date Adjusted Actuals EPS GAAP EPS
Q4 2022 2022-11-15 Future report Set alerts
Q3 2022 2022-08-03 0.17 0.17
Q2 2022 2022-05-04 0.19 0.19
Q1 2022 2022-02-03 0.45 0.45
Q4 2021 2021-11-17 0.33 0.33
Q3 2021 2021-08-02 0.05 0.05
Q2 2021 2021-05-06 -0.02 -0.02
Q1 2021 2021-02-04 -0.01 -0.01
Q3 2020 2020-08-06 -0.45 -0.45
Q2 2020 2020-05-07 0.18 0.18

Ratings

2015-09-04 Lower Price Target RBC Capital Sector Perform $11.00 to $6.00
2015-09-04 Lower Price Target Royal Bank Of Canada Sector Perform $11.00 to $6.00
2015-07-23 Downgrade S&P Equity Research Buy
2015-04-07 Reiterated Rating Argus Sell
2014-10-09 Upgrade Wells Fargo & Co. Market Perform to Outperform
2014-10-09 Upgrade Wells Fargo Market Perform to Outperform
2013-04-02 Downgrade Argus Buy to Sell
2011-08-29 Reiterated Argus Buy $24 to $20
2011-02-04 Reiterated Barclays Capital Underweight $17 to $15
2010-03-17 Downgrade Argus Buy to Hold
2010-02-09 Upgrade Argus Sell to Buy $28
2010-02-03 Upgrade Piper Jaffray Underweight to Neutral
2009-02-05 Reiterated Credit Suisse Neutral $16 to $14
2009-02-04 Reiterated Credit Suisse Neutral $16 to $14
2009-02-04 Downgrade Piper Jaffray Buy to Sell
2008-12-29 Downgrade Argus Hold to Sell
2008-12-02 Reiterated Barclays Capital Underweight $16
2008-08-20 Upgrade First Analysis Sec Equal-Weight to Overweight
2008-05-20 Downgrade Banc of America Sec Neutral to Sell
2008-04-22 Reiterated Lehman Brothers Underweight $13 to $12
2015-09-04 Lower Price Target RBC Capital Sector Perform $11.00 to $6.00
2015-09-04 Lower Price Target Royal Bank Of Canada Sector Perform $11.00 to $6.00
2015-07-23 Downgrade S&P Equity Research Buy
2015-04-07 Reiterated Rating Argus Sell
2014-10-09 Upgrade Wells Fargo & Co. Market Perform to Outperform

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks
Coliseum Capital Management, LLC 14.65%  (3601724) ACW / ADES / BIOS / HCAC / LHCG / PRSC / UTI /
STADIUM CAPITAL PARTNERS L P 9.78%  (2405964) ARC / BGFV / BLDR / UTI /
MCWATERS KIMBERLY J Chief Executive Officer 2.89%  (710061) MINI / PAG / UTI /
PUTNAM EUGENE S JR President and CFO 1.04%  (256252) ESXB / UTI /
Smith Sherrell SVP Operations 0.75%  (184139) UTI /
Freed Chad Allen General Counsel, SVP Bus Dev 0.67%  (165355) UTI /
Peterson Bryce H SVP Information Technology 0.54%  (131820) UTI /
WHITE JOHN C Chairman of the Board 0.53%  (130635) UTI /
Turner Rhonda R SVP People Services 0.36%  (88197) UTI /
May Jeffry B SVP Marketing & Strategy 0.35%  (85565) UTI /
CONRAD A CONRAD 0.31%  (75300) UTI /
SRERE LINDA J 0.29%  (72300) UTI /
Paige Roderick R 0.28%  (68751) UTI /
TRAMMELL KENNETH R 0.27%  (65819) TEN / UTI /
PENSKE ROGER S 0.26%  (63447) PAG / UTI /
Blaszkiewicz David 0.25%  (61364) UTI /
LENNOX WILLIAM J JR 0.25%  (60669) UTI /
Cranston Kenneth J SVP Admissions 0.23%  (57258) UTI /
Jameson Piper P EVP & Chief Marketing Officer 0.23%  (55979) LINC / UTI /
BARRESI CHARLES SVP Customer Solutions 0.22%  (53887) UTI /
Grant Jerome Alan EVP & Chief Operating Officer 0.18%  (44379) UTI /
DEVINCENZI ROBERT THOMAS 0.13%  (31059) UTI /
Cabito Alan 0.12%  (30114) UTI /