Universal Technical EVP and CFO Trades Company's Stock

Troy R Anderson, EVP and CFO at Universal Technical UTI, reported an insider sell on December 18, according to a new SEC filing.

What Happened: Anderson opted to sell 7,173 shares of Universal Technical, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction's total worth stands at $78,472.

The latest market snapshot at Tuesday morning reveals Universal Technical shares down by 0.0%, trading at $10.72.

Discovering Universal Technical: A Closer Look

Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment includes Universal Technical Institute (UTI) and Concorde Career Colleges. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.

Breaking Down Universal Technical's Financial Performance

Positive Revenue Trend: Examining Universal Technical's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 53.92% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 45.3%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Universal Technical's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.1.

Debt Management: Universal Technical's debt-to-equity ratio surpasses industry norms, standing at 1.55. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Universal Technical's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 82.46.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.61 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 7.66 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Universal Technical's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.