Robert Thomas DeVincenzi, a director at Universal Technical Institute Inc (NYSE:UTI), has sold a significant portion of his holdings in the company. According to a recent SEC filing, DeVincenzi sold a total of 150,000 shares, generating approximately $3.8 million. The shares were sold at prices ranging from $25.4331 to $25.9732.
In addition to the sales, DeVincenzi also exercised options to acquire 150,000 shares at a price of $3.14 each, bringing the total value of these acquisitions to $471,000. Following these transactions, DeVincenzi's direct ownership in the company stands at 122,452 shares.
These transactions were executed on November 25, 2024, and were disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Universal Technical Institute (UTI) reported strong growth in the fiscal year 2024, with a 21% increase in revenue to $733 million and a net income of $42 million. The company also experienced a 10% rise in average full-time active students and a significant 60% surge in adjusted EBITDA, reaching $103 million. UTI is entering Phase 2 of its North Star strategy, focusing on campus expansion, the introduction of new programs, and operational optimization. For fiscal 2025, UTI forecasts revenue in the range of $800-$815 million and plans to roll out new programs and campuses.
In addition to these developments, Rosenblatt Securities has raised its price target for UTI to $30.00, up from the previous $22.00, while maintaining a Buy rating on the stock. This decision follows UTI's impressive recent performance and is influenced by significant industry trends such as the expanding skills gap and the retirement of baby boomers. Rosenblatt's upward revision of its fiscal year 2025 estimates for UTI reflects confidence in the company's strategic positioning to capitalize on current labor market dynamics.
Finally, UTI plans to launch nine full-length programs and ten short courses across its campuses, with three new campuses set to open in 2026. This aligns with the company's commitment to meeting the increasing demand for skilled professionals, as highlighted by CEO Jerome Grant.
InvestingPro Insights
The recent insider sale by Robert Thomas DeVincenzi comes at a time when Universal Technical Institute Inc (NYSE:UTI) is experiencing significant market momentum. According to InvestingPro data, UTI's stock has shown remarkable performance, with a 120.29% price total return over the past year and a 107.27% return year-to-date. This strong performance is reflected in the stock trading near its 52-week high, with the current price at 98.52% of that peak.
The company's financial health appears robust, with revenue growth of 20.63% over the last twelve months as of Q4 2024, reaching $732.69 million. Additionally, UTI's EBITDA growth stands at an impressive 80.35% for the same period, indicating improved operational efficiency.
However, investors should note that the stock's current valuation metrics suggest it may be trading at a premium. The P/E ratio (adjusted) stands at 36.82, which is considered high by many standards. This aligns with an InvestingPro Tip indicating that UTI is "Trading at a high earnings multiple."
Another InvestingPro Tip highlights that the RSI suggests the stock is in overbought territory, which could be a consideration for potential investors given the recent price surge.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for UTI, providing a deeper understanding of the company's financial position and market performance.
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