Shares of Universal Technical Institute, Inc. (UTI) Plunge Amid Several New Investigations into Company Procedures


Universal Technical Institute, Inc. (NYSE:UTI) shares stumbled today amid the release of a 10-k filing by the company and several alerts issued by law offices concerning on-going investigations into whether or not the company violated SEC laws by issuing misleading information to their investors.

Goldberg Law PC announced their own investigatio late this morning, and then the Law Offices of Howard G. Smith announced yet another investigation into Universal Technical Institute, Inc.’s (NYSE:UTI) practices early this afternoon.

“On July 17, 2015, Universal Technical Institute, Inc. (the Company) received a subpoena from the U.S. Attorney’s Office for the Western District of North Carolina (U.S. Attorney’s Office) issued pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA),” Law Offices of Howard G. Smith explained. “The subpoena covers a broad range of matters relating to the Company’s Mooresville, North Carolina campus operations over the past several years. It also seeks documents and information relating to the Company’s compliance with the “90/10 rule,” and other Company programs and practices. We intend to cooperate with the U.S. Attorney’s Office, and cannot predict the duration or outcome of its inquiry.”

The stock has dropped 30.86% or $1.79 trading at $4.01 today. About 897,378 shares traded hands or 1351.48% up from the average. UTI has declined 35.90% since April 29, 2015 and is downtrending. It has underperformed the S&P500 by 35.70%.

From a total of 2 analysts covering Universal Technical (NYSE:UTI) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $100 while the lowest target price is $6. The mean of all analyst targets is $53 which is 1221.70% above today’s ($4.01) stock price. Universal Technical was the topic of 2 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on September 4 with a “Sector Perform” rating.

The institutional sentiment decreased to 0.87 in Q2 2015. It’s down 0.44, from 1.31 in 2015Q1. The ratio fall, as 9 funds sold all their Universal Technical Institute, Inc. shares they owned while 38 reduced their positions. 8 funds bought stakes while 33 increased their total positions. Institutions now own 19.17 million shares which is 6.32% more than the previous share count of 18.03 million in 2015Q1.

Stadium Capital Management Llc holds 9.12% of its total portfolio in Universal Technical Institute, Inc., equating to 3.61 million shares. Robertson Opportunity Capital Llc owns 594,077 shares representing 3.95% of their total US portfolio. Moreover, Hawk Ridge Management Llc has 0.75% of their total portfolio invested in the company, equating to 106,831 shares. The California-based Rbf Capital Llc has a total of 0.21% of their portfolio invested in the stock. Heartland Advisors Inc, a Wisconsin-based fund reported 750,000 shares owned.

Universal Technical Institute, Inc. is engaged in providing postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. The company has a market cap of $143.34 million.