The only investment among Stadium’s top picks that has been left unchanged is Universal Technical Institute, Inc. (NYSE:UTI). The fund owns more than 3.6 million shares, the value of which has increased by 25% to $45.5 million. The stock has a trailing P/E ratio of 56.78 and a forward P/E of 52.09. Universal Technical Institute, Inc. (NYSE:UTI) has a beta of 0.99 and pays a dividend of $0.40, which translates into a yield of 3.3%. Shares currently trade at approximately $12. Analysts have mixed feelings about the stock, as it is recommended as a Hold by four of them, while three analysts expect it to Underperform, and only one recommends to Buy;they have set a price target range of $9-$11.
Closing out the top five is K12 Inc. (NYSE:LRN). Seaver has added 2% to the fund’s investment in the education service provider, taking its holdings to a total value of $42 million. Shares have surged 33% so far in 2013, and are currently valued at approximately $28 per share. The stock is traded at a trailing P/E ratio of 39.77 with a forward P/E ratio of 29.31. In the first quarter, K12 Inc. (NYSE:LRN) delivered a profit, beating market estimates, with an EPS of $0.31 and revenues of $218 million. Wall Street is bullish on this stock, with 7 analysts recommending it as a Buy or Strong Buy, with only one recommending it as a Hold.
Stadium Capital’s management seems to be bullish on education, with two of its top five positions resting in this space. We suggest investors keep an eye on K12 Inc. (NYSE:LRN) and Universal Technical Institute, Inc. (NYSE:UTI), accordingly. Builders FirstSource, Inc. (NASDAQ:BLDR) is another stock worth tracking due to positive market sentiment, along with underrated yield plays Big 5 Sporting Goods Corporation (NASDAQ:BGFV) and Insperity Inc (NYSE:NSP);continue preparing for 13F filing season here.