UTI Universal stock Story

UTI -  USA Stock  

USD 5.51  0.02  0.36%

As many millenniums are trying to avoid consumer defensive space, it makes sense to concentrate on Universal Technical Institute a little further and try to understand its current market patterns. As expected, Universal Technical is starting to reaffirm its true potential as stockholders are becoming more and more confident in the future outlook. The returns on investing in Universal Technical and the market returns of the last few months appear not related. The occurrence of stable technical and fundamental indicators of the company implies a mid-run price swing for stockholders of Universal. Universal Technical is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021.
Published over six months ago
View all stories for Universal Technical | View All Stories
Should you purchase Universal Technical (NYSE:UTI) based on current technical indicators?
This firm's average rating is Buy from 6 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Universal Technical market sentiment investors' perception of the future value of Universal. Let us look at a few aspects of Universal technical analysis. The company has Net Profit Margin of 2.25 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of (1.47) %, which entails that for every $100 of revenue, it lost -0.01.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Universal Technical Institute. In general, we focus on analyzing Universal Technical stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Universal Technical's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Universal Technical's intrinsic value. In addition to deriving basic predictive indicators for Universal Technical, we also check how macroeconomic factors affect Universal Technical price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Universal Technical's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Universal Technical in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Universal Technical. Your research has to be compared to or analyzed against Universal Technical's peers to derive any actionable benefits. When done correctly, Universal Technical's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Universal Technical.

How does UTI Universal Stands against Peers?

Analyzing Universal Technical competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Universal Technical across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Universal Technical Competition Details

How UTI Universal utilizes its cash?

To perform a cash flow analysis of Universal Technical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Universal Technical is receiving and how much cash it distributes out in a given period. The Universal Technical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Universal Technical Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 8.49 Million

Exercise or conversion by Christopher Kevane of 3325 shares of Universal Technical subject to Rule 16b-3

Legal trades by Universal Technical insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Universal insider trading alert for exercise of restricted stock units by Christopher Kevane, SVP Chief Legal Officer, on 8th of March 2021. This event was filed by Universal Technical Insti with SEC on 2021-03-08. Statement of changes in beneficial ownership - SEC Form 4. Christopher Kevane currently serves as senior vice president chief legal officer of Universal Technical [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Universal Technical

The company has a beta of 0.0872. Let's try to break down what Universal's beta means in this case. Universal Technical returns are very sensitive to returns on the market. As the market goes up or down, Universal Technical is expected to follow. The beta indicator helps investors understand whether Universal Technical moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Universal deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The current drop in stock price created some momentum for stockholders as it was traded today as low as 5.58 and as high as 5.84 per share. The company directors and management have failed to build on market volatilities in October. However, diversifying your overall positions with Universal Technical Institute may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.77. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Universal Technical partners.

Universal showing occurrence of lower volatility

Current value at risk indicator falls down to -4.45. Possible price rise? Universal Technical Institute exhibits very low volatility with skewness of 1.76 and kurtosis of 8.82. However, we advise investors to further study Universal Technical Institute technical indicators to make sure all market info is available and is reliable.

Our Bottom Line On Universal Technical

While some companies in the education & training services industry are either recovering or due for a correction, Universal may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 18th of November 2020, we believe that at this point, Universal Technical is undervalued with below average probability of distress within the next 2 years. Our current advice on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Universal Technical Institute. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com