What to Know About This Fund's $4.8 Million Bet on Lincoln Educational Services as Shares Surge 100%

On May 14, 2026, Needham Investment Management reported buying 152,500 shares of Lincoln Educational Services (NASDAQ:LINC), an estimated $4.80 million trade based on quarterly average pricing.

What happened

According to a recent filing with the Securities and Exchange Commission, Needham Investment Management increased its stake in Lincoln Educational Services by 152,500 shares during the first quarter of 2026. The estimated value of the shares acquired is approximately $4.80 million, based on the average closing price during the quarter. The fund’s quarter-end position value increased by $24.80 million, a figure that includes both trading activity and market price changes.

What else to know

• Following the buy, Lincoln Educational Services represented 2.66% of the fund’s reportable assets under management as of March 31, 2026.
• Top holdings after the filing:
  • NASDAQ:LASR: $109.63 million (5.6% of AUM)
  • NASDAQ:VICR: $84.04 million (4.3% of AUM)
  • NYSE:VRT: $71.48 million (3.7% of AUM)
  • NASDAQ:PDFS: $66.16 million (3.4% of AUM)
  • NASDAQ:AIP: $64.98 million (3.3% of AUM)
• As of Friday, shares of Lincoln Educational Services were priced at $46.32, up about 100% over the past year and well outperforming the S&P 500, which is up 28% in the same period.

Company overview

Company snapshot

• Lincoln offers career-oriented post-secondary education programs in automotive technology, skilled trades, healthcare, hospitality, and information technology.
• The company operates a tuition-based model, generating revenue primarily from student enrollments in associate degree, diploma, and certificate programs.
• It serves high school graduates and working adults seeking vocational training and professional certification in the United States.

Lincoln Educational Services Corporation is a leading provider of specialized technical and vocational education, with a diversified program portfolio spanning transportation, skilled trades, healthcare, and hospitality. The company leverages a multi-campus platform and established brand names to attract students seeking practical, career-focused training. Its scale and program diversity position it to address evolving workforce needs and maintain a competitive edge in the post-secondary education sector.

What this transaction means for investors

Needham added to its Lincoln Educational position as shares absolutely skyrocketed, up close to 100% over the past year and surging nearly 70% last quarter alone. That suggests the firm sees more than just momentum. And recent financials back up that thesis. First-quarter revenue jumped 22.5% to $144 million, while net income more than doubled to $4.4 million. Adjusted EBITDA surged 85% to $15.5 million as student starts climbed nearly 20%.

Among the strongest growth was from transportation and skilled trades programs, where student starts rose nearly 24% year over year. CEO Scott Shaw said Lincoln has now delivered fourteen consecutive quarters of start growth and highlighted strong employer demand for graduates in skilled trades fields.

Management was confident enough to raise full-year guidance, now projecting revenue of $590 million to $600 million and adjusted EBITDA of $76 million to $80 million. The company also expanded its revolving credit facility to $125 million to support future campus openings and growth initiatives.

For long-term investors, one key question is whether Lincoln can keep executing on enrollment growth. If it can, today's valuation may still not fully reflect the company's long-term earnings potential.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertiv. The Motley Fool has a disclosure policy.