Lincoln Educational Servs 10% Owner Sold $1.66M In Company Stock

Disclosed on November 27, Juniper Investment Company LLC, 10% Owner at Lincoln Educational Servs LINC, executed a substantial insider sell as per the latest SEC filing.

What Happened: LLC's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 99,918 shares of Lincoln Educational Servs. The total transaction value is $1,656,437.

The latest market snapshot at Thursday morning reveals Lincoln Educational Servs shares up by 0.18%, trading at $16.49.

Get to Know Lincoln Educational Servs Better

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. Majority of the revenue is generated from Campus Operations segment which includes all campuses that are continuing in operation and contribute to the Company's core operations and performance.

Financial Milestones: Lincoln Educational Servs's Journey

Revenue Growth: Over the 3 months period, Lincoln Educational Servs showcased positive performance, achieving a revenue growth rate of 14.85% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company sets a benchmark with a high gross margin of 58.0%, reflecting superior cost management and profitability compared to its peers.

• 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 0.13.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.01.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 51.44, Lincoln Educational Servs's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.2 is lower than the industry average, implying a discounted valuation for Lincoln Educational Servs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 24.43, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.