Coliseum Capital, LLC, a significant shareholder of Universal Technical Institute Inc . (NYSE:UTI), recently sold 2,483,579 shares of the company's common stock. The shares were sold at a price of $25.10 each, amounting to a total transaction value of approximately $62.3 million. The sale comes as UTI's stock has surged 121% over the past year, with InvestingPro data showing the stock trading at elevated multiples with a P/E ratio of 31.6.
The shares were held by Coliseum Capital Partners (WA:CPAP), L.P., an investment limited partnership, and a separate account investment advisory client of Coliseum Capital Management, LLC. Following this transaction, Coliseum Capital Partners retains ownership of 5,679,352 shares, while the separate account holds 1,171,284 shares, as noted in the filing. The $1.31 billion market cap company maintains a GREAT financial health score according to InvestingPro analysis.
Christopher Shackelton, a director at Universal Technical Institute, and Adam Gray, both managers and stakeholders in Coliseum Capital Management, disclaim beneficial ownership of these securities except for their pecuniary interest. With UTI's RSI indicating overbought conditions, investors can access 12 additional key insights and a comprehensive Pro Research Report through InvestingPro.
In other recent news, Universal Technical Institute (UTI) demonstrated significant growth, reporting a 21% increase in revenue to $733 million and a net income of $42 million for the fiscal year 2024. The company also saw a 10% uplift in average full-time active students and a substantial 60% surge in adjusted EBITDA, reaching $103 million. As part of its recent developments, 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 projects revenue in the range of $800-$815 million and has plans to roll out new programs and campuses. 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, following UTI's impressive recent performance. The firm cited the expanding skills gap and the retirement of baby boomers as key factors contributing to a surge in demand for qualified workers, which has positively affected UTI.
Rosenblatt's analysis suggests that despite the stock's recent rally, there is a belief in the market that UTI can sustain its growth trajectory and further improve its financial results. The company's ability to meet this demand has led Rosenblatt to revise its fiscal year 2025 estimates upward. The new price target of $30.00 underscores the confidence that Rosenblatt Securities has in UTI's future performance.
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