We'd be surprised if Lincoln Educational Services Corporation (NASDAQ:LINC) shareholders haven't noticed that the Independent Non-Executive Chairman, J. Morrow, recently sold US$204k worth of stock at US$10.05 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.
The Last 12 Months Of Insider Transactions At Lincoln Educational Services
Over the last year, we can see that the biggest insider sale was by the Executive VP, Brian Meyers, for US$682k worth of shares, at about US$6.46 per share. That means that an insider was selling shares at slightly below the current price (US$10.00). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 28% of Brian Meyers's holding.
In the last year Lincoln Educational Services insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Lincoln Educational Services better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Lincoln Educational Services
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Lincoln Educational Services insiders own 9.0% of the company, worth about US$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Lincoln Educational Services Insider Transactions Indicate?
An insider hasn't bought Lincoln Educational Services stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Lincoln Educational Services is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Lincoln Educational Services you should be aware of, and 1 of them can't be ignored.
Of course Lincoln Educational Services may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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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.
