Is Universal Technical Institute Stock a Buy After Needham Raised Its Stake Over $7 Million?
Key Points
Investment firm Needham added 239,000 shares, raising the position value by $7.36 million.
The change represents 0.4% of 13F reportable assets under management.
Post-trade, the fund holds 550,000 shares valued at $17.90 million.
The position now accounts for 1.2% of the fund’s AUM, which places it outside the fund's top five holdings.
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What happened
According to a filing with the Securities and Exchange Commission (SEC) dated November 14, 2025, Needham Investment Management LLC increased its position in Universal Technical Institute (NYSE:UTI) by 239,000 shares during the third quarter. The stake rose to 550,000 shares, with an end-of-quarter value of $17.90 million, reflecting a $7.36 million net increase versus the prior quarter’s filing.
What else to know
The position now represents 1.2% of Needham Investment Management LLC's 13F reportable AUM.
Top holdings after the filing:
- NASDAQ: SMCI: $67.36 million (4.7% of AUM)
- NASDAQ: TDUP: $53.63 million (3.7% of AUM)
- NASDAQ: LASR: $60.35 million (3.4% of AUM)
- NASDAQ: PDFS: $60.90 million (3.4% of AUM)
- NYSE: VRT: $82.14 million (4.6% of AUM)
As of November 13, 2025, shares were priced at $29.38, up 44.5% over the past year, outperforming the S&P 500 by 33.3 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close November 13, 2025) | $29.38 |
| Market capitalization | $1.60 billion |
| Revenue (TTM) | $835.62 million |
| Net income (TTM) | $63.02 million |
Company Snapshot
- Universal Technical Institute offers technical training programs in automotive, diesel, collision repair, motorcycle, marine, welding, and CNC machining, with revenue primarily from tuition and fees.
- It operates a campus-based education model, delivering certificate, diploma, and degree programs, as well as manufacturer-sponsored advanced training.
- The company serves postsecondary students seeking technical careers in transportation and related industries across the United States.
Universal Technical Institute is a leading provider of technical education, specializing in training for automotive, diesel, and related skilled trades. The company leverages a national campus network and partnerships with manufacturers to deliver industry-aligned curricula.
Its scale and focus on career-oriented training position it as a key player in meeting the workforce needs of the transportation sector.
Foolish take
Investment firm Needham boosting its stake in Universal Technical Institute (UTI) by $7.36 million suggests it has a bullish outlook towards the education specialist's future. That's a strong endorsement considering UTI shares dropped to a 52-week low of $21.29 in November.
Shares fell despite the company exiting its 2025 fiscal year, ended Sept. 30, with revenue of $835.6 million, a strong 14% year-over-year increase. Net income also rose to $63 million, representing 50% year-over-year growth.
The price of Universal Technical Institute stock declined because the company anticipates net income in its 2026 fiscal year will drop about 33% year over year as it invests in expanding its business. This includes opening new campuses and implementing education programs targeting the healthcare industry. Consequently, its operating costs will increase, thereby reducing net income.
However, over the long term, UTI's investments to expand its operations position the company to grow revenue further. Perhaps Needham is looking at this long-term growth opportunity as a factor in its decision to increase its stake.
Universal Technical Institute is making the moves to strengthen its business over the long run, making the stock a compelling buy given its share price drop.
Glossary
13F reportable assets under management (AUM): The portion of a fund's assets that must be disclosed in quarterly SEC filings.
Position: The amount of a particular security or investment held by an investor or fund.
Stake: The ownership interest or share held in a company by an investor or institution.
Quarter: A three-month period used by companies and investors for financial reporting and analysis.
Top holdings: The largest investments held in a fund's portfolio, typically by value.
Outperforming: Achieving a higher return or better results than a benchmark or comparison group.
Campus-based education model: An educational approach where instruction is delivered in-person at physical locations.
Manufacturer-sponsored advanced training: Specialized courses developed and supported by industry manufacturers to provide in-depth technical skills.
Industry-aligned curricula: Educational programs designed to match the current needs and standards of a specific industry.
Workforce needs: The demand for skilled employees within a particular sector or industry.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Super Micro Computer. The Motley Fool recommends ThredUp. The Motley Fool has a disclosure policy.
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