Revealing a significant insider sell on June 10, Chad D Nyce, EVP & Chief Operating Officer at Lincoln Educational Servs LINC, as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Nyce sold 6,200 shares of Lincoln Educational Servs. The total transaction amounted to $142,166.
The latest update on Wednesday morning shows Lincoln Educational Servs shares up by 1.89%, trading at $21.56.
All You Need to Know About Lincoln Educational Servs
Lincoln Educational Services Corp provides diversified career-oriented post-secondary education to high school graduates and working adults. The company offers programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology. Its reportable segments include; Campus Operations, and Transitional. The majority of the revenue is generated from the Campus Operations segment which includes all campuses that are continuing in operation and contribute to the Company's core operations and performance.
Lincoln Educational Servs: Financial Performance Dissected
Revenue Growth: Lincoln Educational Servs displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 13.68%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Analyzing Profitability Metrics:
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Gross Margin: With a high gross margin of 59.65%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Lincoln Educational Servs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.06.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.99, caution is advised due to increased financial risk.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: Lincoln Educational Servs's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 54.26.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.45, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 25.0, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Unmasking the Significance of Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Important Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Lincoln Educational Servs's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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