Jim Cramer on Universal Technical: "I Think it Was Priced for Perfection"

Universal Technical Institute, Inc. (NYSE:UTI) is one of the stocks Jim Cramer talked about. Cramer discussed the stock’s massive decline in price during the episode. He stated:

“All right, what in the world just happened to the stock of Universal Technical Institute? That’s a company that offers training programs for jobs and transportation, skilled trades, in the healthcare, among other fields. Last week, the company, memorably ticker UTI, reported what might have seemed like a better-than-expected quarter. It was a nice top and bottom line beat, management raising their forecast for full-year revenue and new student starts. But somehow, the stock plunged nearly 19% and it kept sliding lower since then, largely because Universal Technical also reported weaker-than-expected new student starts. Now, some of that comes down to the fact that the stock was up more than 90% over the previous year going into the quarter. So I think it was priced for perfection.”

Universal Technical Institute, Inc. (NYSE:UTI) provides education and training programs in transportation, skilled trades, and healthcare fields. The company’s brands and campuses provide certificates, diplomas, and degrees along with manufacturer-specific advanced training programs.

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Disclosure: None. This article is originally published at Insider Monkey.