SEI Investments (NASDAQ:SEIC) Shares Gap Up Following Earnings Beat

SEI Investments Company (NASDAQ:SEIC)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $84.79, but opened at $89.14. SEI Investments shares last traded at $90.7710, with a volume of 500,963 shares.

The asset manager reported $1.44 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.15. The business had revenue of $622.18 million during the quarter, compared to the consensus estimate of $641.82 million. SEI Investments had a return on equity of 30.98% and a net margin of 31.17%.The company’s quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter last year, the company earned $1.17 earnings per share.

SEI Investments News Summary

Here are the key news stories impacting SEI Investments this week:

• Positive Sentiment: Q1 earnings beat and margin improvement: SEI reported Q1 EPS that topped consensus and showed year‑over‑year growth in revenue, operating income and operating margin — metrics investors typically reward in asset managers. Read More.
• Positive Sentiment: Analyst upgrade and higher price target: Keefe, Bruyette & Woods raised its price target to $107 and kept an outperform rating, giving the stock notable upside from current levels and supporting bullish sentiment. Read More.
• Neutral Sentiment: Revenue/AUM mix: Revenue and AUM rose year‑over‑year and cash‑flow metrics showed growth in some areas, but total revenue for the quarter slightly trailed some street estimates — a mixed signal that tempers the beat. Read More.
• Negative Sentiment: Insider selling: Director/insider Sanjay Sharma sold 25,000 shares (~38.6% reduction in his holding) at an average price of $90.12, disclosed in an SEC Form 4 — a signal some investors view as cautionary. Read More.

Analyst Ratings Changes

SEIC has been the subject of several recent analyst reports. Morgan Stanley lowered their price target on SEI Investments from $119.00 to $108.00 and set an “overweight” rating for the company in a report on Thursday, April 2nd. UBS Group initiated coverage on SEI Investments in a report on Wednesday, February 4th. They issued a “buy” rating and a $115.00 price target for the company. Weiss Ratings reissued a “buy (b)” rating on shares of SEI Investments in a report on Tuesday. Piper Sandler reissued an “overweight” rating and issued a $105.00 price target (up from $99.00) on shares of SEI Investments in a report on Thursday. Finally, Raymond James Financial reissued an “outperform” rating and issued a $117.00 price target on shares of SEI Investments in a report on Monday, January 5th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $108.83.

Insider Transactions at SEI Investments

In other news, Chairman Alfred P. West, Jr. sold 55,000 shares of the firm’s stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $80.23, for a total value of $4,412,650.00. Following the completion of the transaction, the chairman directly owned 6,883,230 shares in the company, valued at $552,241,542.90. This trade represents a 0.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Ryan Hicke sold 80,000 shares of the firm’s stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $87.36, for a total value of $6,988,800.00. Following the completion of the transaction, the chief executive officer owned 197,164 shares of the company’s stock, valued at approximately $17,224,247.04. The trade was a 28.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 171,447 shares of company stock valued at $14,571,659. 14.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Root Financial Partners LLC purchased a new position in shares of SEI Investments in the third quarter worth about $28,000. SJS Investment Consulting Inc. raised its position in SEI Investments by 142.9% during the third quarter. SJS Investment Consulting Inc. now owns 357 shares of the asset manager’s stock valued at $30,000 after acquiring an additional 210 shares in the last quarter. Community Bank N.A. purchased a new position in SEI Investments during the third quarter valued at approximately $35,000. Allworth Financial LP raised its position in SEI Investments by 44.0% during the third quarter. Allworth Financial LP now owns 432 shares of the asset manager’s stock valued at $37,000 after acquiring an additional 132 shares in the last quarter. Finally, CIBC Private Wealth Group LLC raised its position in SEI Investments by 353.1% during the third quarter. CIBC Private Wealth Group LLC now owns 435 shares of the asset manager’s stock valued at $37,000 after acquiring an additional 339 shares in the last quarter. 70.59% of the stock is currently owned by hedge funds and other institutional investors.

SEI Investments Stock Performance

The firm has a 50-day moving average of $79.62 and a two-hundred day moving average of $81.92. The company has a quick ratio of 3.20, a current ratio of 3.29 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $11.02 billion, a PE ratio of 15.54 and a beta of 0.94.

About SEI Investments

SEI Investments Company is a global provider of asset management, investment processing, and investment operations solutions. The firm offers a range of services designed to help financial institutions, private banks, wealth managers and family offices streamline back-office functions and enhance front-office capabilities. SEI’s technology platforms support various stages of the investment lifecycle, including trade execution, performance reporting, risk analytics and client communications.

The company’s core offerings include outsourced fund administration, custody and trust services, managed account solutions, and wealth management technology.