PARSIPPANY, N.J. - Lincoln Educational Services Corporation (NASDAQ: LINC), a provider of career-oriented post-secondary education, announced today that its Board of Directors has approved an extension of its share repurchase program through May 24, 2025. Initially authorized on May 24, 2022, for $30 million, the program has been expanded to $40 million.
Since the program's inception, the company has repurchased approximately 1.7 million shares at an average price of $5.95 per share, totaling around $10.3 million. This leaves an additional $29.7 million available for future repurchases.
Lincoln Educational Services plans to fund these repurchases with available cash and cash generated from operations, retaining the flexibility to alter, limit, or terminate the buyback program at any time.
Scott M. Shaw, CEO and President of Lincoln Educational Services, stated that the extension of the buyback program underscores the company's commitment to optimizing its balance sheet and enhancing shareholder value. He emphasized that the program is part of a capital allocation strategy aimed at long-term franchise value enhancement while maintaining financial flexibility for future growth investments.
The company, which has been providing skilled technicians to the workforce since 1946, operates 22 campuses across 13 states, offering programs in automotive technology, health sciences, skilled trades, business and information technology, and hospitality services.
This news is based on a press release statement from Lincoln Educational Services Corporation.
InvestingPro Insights
In light of Lincoln Educational Services Corporation's (NASDAQ: LINC) announcement regarding the extension of its share repurchase program, a closer look at the company's financial health and stock performance is essential. According to real-time data from InvestingPro, Lincoln Educational Services boasts a market capitalization of $384.59 million, reflecting the company's value as perceived by the stock market. The company's P/E ratio stands at 13.17, suggesting that investors are paying $13.17 for every dollar of earnings, which is considered low relative to near-term earnings growth.
For those looking to gauge the stock's recent performance, Lincoln Educational Services has experienced a significant return over the last week, with a 14.73% price total return. This momentum extends over the last year, with an impressive 113.44% return, indicating robust growth for investors during this period. Furthermore, with the stock trading near its 52-week high at 98.39% of the peak price, the company's shares have been resonating well with the market.
InvestingPro Tips highlight that while the stock is currently in overbought territory according to the RSI, which could signal caution for potential buyers, the company is trading at a low P/E ratio in light of its near-term earnings growth. This could suggest that the shares are undervalued based on earnings potential. In addition, Lincoln Educational Services has liquid assets that exceed its short-term obligations, providing a cushion for operational needs and potential investments.
For those interested in deeper financial analysis and more InvestingPro Tips, you can find additional insights on Lincoln Educational Services by visiting InvestingPro. There are 16 additional tips available that could further guide investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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