key insights
Given the large stake in the stock by educational institutions, Lincoln Educational Services’ share price may be sensitive to its trading decisions 50% of the business is owned by the top 15 shareholders Ownership research and In parallel, the use of analyst forecast data allows you to better assess the future performance of the company
If you want to know who really controls Lincoln Educational Services Corporation (NASDAQ:LINC), you’ll have to take a look at the makeup of its share registry. The group that owns the largest number of shares in the company (about 56% to be exact) is institutional investors. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
And things are looking up for institutional investors after the company gained a market capitalization of US$38 million last week. The one-year return to shareholders is currently 59%, and last week’s gain was a bonus.
Let’s delve deeper into each type of owner at Lincoln Educational Services, starting from the table below.
Check out our latest analysis for Lincoln Educational Services.
NasdaqGS:LINC Ownership Breakdown October 17, 2024
What does institutional ownership tell us about Lincoln Educational Services?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Lincoln Educational Services. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Lincoln Educational Services, (below). Of course, keep in mind that there are other factors to consider as well.
NasdaqGS:LINC Earnings and Revenue Growth October 17, 2024
Investors should note that institutional investors actually own more than half the company, so they can collectively wield significant power. Our data shows that hedge funds own 11% of Lincoln Educational Services. This is interesting because hedge funds can be very active and active. Many are hoping for a medium-term catalyst that will lead to higher stock prices. According to our data, Juniper Investment Company, LLC is the largest shareholder with 11% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.9% of the common stock, and Heartland Advisors, Inc. owns approximately 4.7% of the company’s stock. Furthermore, the company’s CEO Scott Shaw directly holds 3.3% of the total outstanding shares.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders. This means that no single shareholder has a majority interest in the ownership.
Researching institutional ownership is a good way to assess and filter a stock’s expected performance. The same thing can be accomplished by studying analyst sentiment. Quite a few analysts cover this stock, so you can find out its expected growth quite easily.
Insider Ownership of Lincoln Educational Services
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
We can see that insiders own shares in Lincoln Educational Services Inc. The company has a market capitalization of just US$410m, but insiders have US$30m worth of shares in their own names. It’s good to see insider investment, so it might be worth checking if those insiders have been buying.
Open to the public
With a 26% ownership interest, the general public, made up primarily of private investors, has some influence over Lincoln Educational Services. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, we’ve identified 2 warning signs for Lincoln Educational Services (1 is potentially serious) you should be aware of.
After all, the future is what matters most. Access this free report on analyst forecasts for the company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
