Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Universal Technical Institute Will Remain Volatile As It Struggle With New Enrollments

Universal Technical Institute, Inc. (NYSE:UTI) has struggled so far in 2014, and that will continue on through the third quarter, as starts (new enrollments) are expected to continue to decline, and for full-year 2014 will end down. The good news is at least in the fourth quarter the company expects to improve over its recent performance, which may give the share price a bump up.

The company is at the top of educational institutions offering training for automotive technicians, and as of late has faced headwinds from a number of areas, including a growing number of competitors, regulatory challenges, student financing issues, and a growing resistance to price increases, among others.

Revenues in the quarter were slightly down...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details