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Is Universal Technical Institute Stock a Buy After Needham Raised Its Stake Over $7 Million?
The Motley Foolยท 2025-12-31 06:46
Company Overview - Universal Technical Institute (UTI) is a leading provider of technical education, focusing on training for automotive, diesel, and related skilled trades, leveraging a national campus network and partnerships with manufacturers to deliver industry-aligned curricula [6] - As of November 13, 2025, UTI's stock price was $29.38, with a market capitalization of $1.60 billion, revenue of $835.62 million, and net income of $63.02 million [4][10] Financial Performance - UTI ended its 2025 fiscal year with revenue of $835.6 million, reflecting a strong 14% year-over-year increase, while net income rose to $63 million, representing a 50% year-over-year growth [10] - Despite strong fiscal performance, UTI's stock price declined due to anticipated net income drop of about 33% year-over-year for the 2026 fiscal year as the company invests in expanding its business [11] Investment Activity - Needham Investment Management LLC increased its position in UTI by 239,000 shares during the third quarter, raising its total stake to 550,000 shares valued at $17.90 million, a net increase of $7.36 million from the previous quarter [2][3] - The increased stake represents 1.2% of Needham's 13F reportable assets under management (AUM) [3] Market Performance - UTI shares have increased by 44.5% over the past year, outperforming the S&P 500 by 33.3 percentage points [3] - The stock price experienced a decline to a 52-week low of $21.29 in November, despite the company's strong revenue growth [7]