Lincoln Educational Services Corp. said Tuesday it plans to buy back 1.25 million shares, or a 3.7 percent stake in the company, including a block of 750,000 being sold by a major shareholder.
Under an agreement with Back to School Acquisition LLC, that company's stake in Lincoln will drop to 31.7 percent from 37.9 percent. The buybacks will leave 25.9 million Lincoln shares outstanding.
Lincoln said it plans to use available cash for the stock repurchases. At current prices, 1.25 million shares would cost Lincoln $27 million.
The for-profit post-secondary education company is based in West Orange, N.J. Its shares closed up 7 cents at $21.60.