What Happened?
Shares of education company Lincoln Educational (NASDAQ: LINC) fell 4.3% in the afternoon session after a notable increase in short-selling activity suggested some investors were betting on further price declines. Data indicated that the short sale ratio for the company rose to 14.28%. This type of activity, where investors borrow shares to sell them in the hopes of buying them back later at a lower price, pointed to anticipation of further drops in the stock's value. The downward pressure was evident as the stock price fell from a previous close of $22.50.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lincoln Educational? Access our full analysis report here.
What Is The Market Telling Us
Lincoln Educational’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 5% on the news that a wave of negative economic data pointed to a weakening economy, sparking a broader market downturn. The decline occurred as major indexes like the S&P 500 and Nasdaq also slipped. Investor concerns grew after the New York Fed's Survey of Consumer Expectations showed that households anticipated higher short-term inflation and had a worse outlook on the job market. People expressed more worry about potential job losses and expected lower earnings growth. Additionally, the chief economist at Moody's Analytics warned that 22 states showed clear signs of a recession. This sentiment was made worse by a U.S. government shutdown, which threatened to impact incomes and purchasing power, affecting spending on services like education.
Lincoln Educational is up 26.1% since the beginning of the year, but at $19.25 per share, it is still trading 21.4% below its 52-week high of $24.50 from August 2025. Investors who bought $1,000 worth of Lincoln Educational’s shares 5 years ago would now be looking at an investment worth $4,250.
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