Advertisement
Canada markets closed
  • S&P/TSX

    22,465.37
    +165.57 (+0.74%)
     
  • S&P 500

    5,318.38
    +15.11 (+0.28%)
     
  • DOW

    39,995.51
    -8.08 (-0.02%)
     
  • CAD/USD

    0.7344
    -0.0004 (-0.05%)
     
  • CRUDE OIL

    79.77
    -0.29 (-0.36%)
     
  • Bitcoin CAD

    92,376.16
    +1,469.57 (+1.62%)
     
  • CMC Crypto 200

    1,376.83
    +22.41 (+1.65%)
     
  • GOLD FUTURES

    2,427.80
    +10.40 (+0.43%)
     
  • RUSSELL 2000

    2,107.86
    +12.15 (+0.58%)
     
  • 10-Yr Bond

    4.4450
    +0.0250 (+0.57%)
     
  • NASDAQ

    16,791.79
    +105.83 (+0.63%)
     
  • VOLATILITY

    12.28
    +0.29 (+2.42%)
     
  • FTSE

    8,424.20
    +3.94 (+0.05%)
     
  • NIKKEI 225

    39,069.68
    +282.30 (+0.73%)
     
  • CAD/EUR

    0.6757
    +0.0002 (+0.03%)
     

Lincoln Educational Services Corporation (NASDAQ:LINC) is definitely on the radar of institutional investors who own 39% of the company

If you want to know who really controls Lincoln Educational Services Corporation (NASDAQ:LINC), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 39% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's take a closer look to see what the different types of shareholders can tell us about Lincoln Educational Services.

View our latest analysis for Lincoln Educational Services

ownership-breakdown
ownership-breakdown

What Does The 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 generally do consider buying larger companies that are included in the relevant benchmark index.

ADVERTISEMENT

As you can see, institutional investors have a fair amount of stake in Lincoln Educational Services. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Our data indicates that hedge funds own 28% of Lincoln Educational Services. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Juniper Investment Company, LLC is currently the largest shareholder, with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.6% and 5.2% of the stock. Additionally, the company's CEO Scott Shaw directly holds 3.0% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Lincoln Educational Services

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Lincoln Educational Services Corporation. It has a market capitalization of just US$196m, and insiders have US$16m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in Lincoln Educational Services. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 4.9%, of the Lincoln Educational Services stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Lincoln Educational Services (1 is a bit concerning) that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here