Universal Technical Institute Inc. (UTI) stock gained 2.74% in the morning session and 7.00% in the after-hours session on Thursday, April 1, 2021. UTI shares have risen by 2.74% over the last 12 months, and they have moved up by 4.35% in the past week. UTI stock has a current market of $191.22 million and its outstanding shares stood at 32.66 million.
Let’s try to find out the reasons behind its positive progress on Thursday, April 1.
Acquisition MIAT College of Technology
On March 29, 2021, UTI signed a definitive agreement to acquire MIAT College of Technology from HCP & Company, its owner since August 2014. The agreement has been approved by both Boards of Directors of both companies
MIAT was founded in 1969 and currently serves approximately 1,200 students through its campuses in Canton and Houston, TX.
New upcoming two Campuses in Austin, Texas
On March 22, 2021, UTI revealed its plan to open two new campuses in two states in the fiscal year 2022. The UTI will open its third campus in Texas which will be a new campus in Austin. UTI stock hasn’t provided any details about the 2ndplanned new campus yet
UTI recent financial results
On February 4, 2021, UTI reported financial results for the fiscal 2021 first quarter ended December 31, 2020.
First-quarter 2021 financial highlights
- For Q1 2021, Revenues were $76.1 million compared to $87.2 million in Q1 2020.
- UTI operating expenses were $75.4 million in Q1 2021, compared to $83.0 million in Q1 2020
- Operating income and adjusted operating income was $0.8 million for the reported quarter, compared to $4.3 million and $6.5 million, in Q1, 2020.
- UTI Net income was $1.1 million for the reported quarter, compared to $4.7 million in Q1 2020.
- For the reported quarter, adjusted EBITDA was $4.3 million, compared to $10.1 million in Q1 2020.
- UTI operating cash flow was $7.8 million in the reported quarter, compared to $7.1 million in Q1 2020.
- For the reported quarter UTI adjusted free cash flow was $5.8 million, compared to $7.0 million in Q1 2020
- UTI’s total available liquidity was $72.1 million consisting of $44.2 million of cash and cash equivalents, as of December 31, 2020.
Conclusion: The recent acquisition of MIAT college is the reason behind its gains on Thursday. The positive momentum can continue after Easter break.
Universal Technical Institute, Inc. is a private for-profit system of technical colleges throughout the United States and is a leading provider of technical training for automotive, diesel, collision repair, motorcycle, and marine technicians, and offers welding technology and computer numerical control (CNC) machining programs. UTI stock is headquartered in Phoenix, Arizona. And it has a network of 12 campuses nationwide.