K12 Inc. (LRN), Big 5 Sporting Goods Corporation (BGFV): Stadium Capital Was Focusing On These 5 Stocks in Q1

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.

Final thoughts

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.

Disclosure: none