SEI Investments (NASDAQ:SEIC) Hits New 1-Year High Following Earnings Beat

SEI Investments Company (NASDAQ:SEIC)’s stock price reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $103.99 and last traded at $98.32, with a volume of 2859 shares. The stock had previously closed at $98.75.

The asset manager reported $1.66 EPS for the quarter, beating analysts’ consensus estimates of $1.44 by $0.22. SEI Investments had a return on equity of 29.42% and a net margin of 28.85%.The firm had revenue of $641.62 million for the quarter, compared to analyst estimates of $636.35 million. During the same quarter in the prior year, the firm earned $1.78 earnings per share. SEI Investments’s revenue for the quarter was up 14.7% on a year-over-year basis.

SEI Investments Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Tuesday, June 16th. Stockholders of record on Monday, June 8th were issued a $0.52 dividend. This represents a dividend yield of 118.0%. The ex-dividend date of this dividend was Monday, June 8th. SEI Investments’s dividend payout ratio is 17.75%.

Trending Headlines about SEI Investments

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

• Positive Sentiment: SEI Investments beat Q2 earnings expectations, reporting $1.66 per share versus consensus around $1.44-$1.45, while revenue came in above estimates at $641.62 million. The company also said revenue rose 14.7% year over year and operating income increased 33%, with operating margin reaching 31%. Article Title
• Positive Sentiment: Management highlighted record growth in revenue and EPS in the Q2 earnings call, which should support confidence in the company’s operating momentum and ability to convert higher activity into profits. Article Title
• Positive Sentiment: Analysts turned more constructive after the report: Morgan Stanley raised its price target to $125 and reiterated an overweight rating, while Keefe, Bruyette & Woods lifted its target to $119 with an outperform rating. Article Title
• Positive Sentiment: Assets under management and assets under administration reportedly rose year over year, reinforcing that the business is still seeing healthy client inflows and scale benefits. Article Title
• Neutral Sentiment: Despite the earnings beat, EPS was below last year’s level, which may have tempered enthusiasm and limited the stock’s upside reaction. Article Title

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SEIC. Piper Sandler raised their target price on shares of SEI Investments from $114.00 to $120.00 and gave the stock an “overweight” rating in a report on Thursday. Keefe, Bruyette & Woods upped their price target on shares of SEI Investments from $113.00 to $119.00 and gave the company an “outperform” rating in a report on Thursday. Raymond James Financial increased their price target on SEI Investments from $122.00 to $124.00 and gave the stock an “outperform” rating in a research report on Monday, July 6th. Weiss Ratings reiterated a “buy (b)” rating on shares of SEI Investments in a research note on Friday, July 17th. Finally, Morgan Stanley lifted their price objective on SEI Investments from $115.00 to $125.00 and gave the company an “overweight” rating in a research note on Thursday. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $122.60.

Insider Activity

In related news, insider Mark Andrew Warner sold 4,000 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $91.16, for a total transaction of $364,640.00. Following the sale, the insider directly owned 921 shares of the company’s stock, valued at approximately $83,958.36. This represents a 81.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Kathryn Mccarthy sold 10,000 shares of the firm’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $91.07, for a total transaction of $910,700.00. Following the sale, the director owned 77,883 shares in the company, valued at approximately $7,092,804.81. This represents a 11.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 71,332 shares of company stock valued at $6,278,583 in the last three months. 4.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SEI Investments

Several institutional investors and hedge funds have recently modified their holdings of the business. Harrell Investment Partners LLC raised its holdings in SEI Investments by 2.6% in the 2nd quarter. Harrell Investment Partners LLC now owns 9,707 shares of the asset manager’s stock worth $851,000 after purchasing an additional 247 shares during the period. Elevation Wealth Partners LLC grew its holdings in SEI Investments by 96.8% in the second quarter. Elevation Wealth Partners LLC now owns 309 shares of the asset manager’s stock valued at $27,000 after purchasing an additional 152 shares during the period. Harbor Investment Advisory LLC increased its position in shares of SEI Investments by 87.2% in the second quarter. Harbor Investment Advisory LLC now owns 747 shares of the asset manager’s stock valued at $66,000 after buying an additional 348 shares in the last quarter. Versant Capital Management Inc increased its position in shares of SEI Investments by 12.6% in the second quarter. Versant Capital Management Inc now owns 2,139 shares of the asset manager’s stock valued at $188,000 after buying an additional 239 shares in the last quarter. Finally, CX Institutional raised its stake in shares of SEI Investments by 44.6% during the 2nd quarter. CX Institutional now owns 532 shares of the asset manager’s stock worth $47,000 after buying an additional 164 shares during the period. Hedge funds and other institutional investors own 70.59% of the company’s stock.

SEI Investments Trading Down 2.0%

The firm has a market capitalization of $11.63 billion, a price-to-earnings ratio of 17.06 and a beta of 0.97. The company has a debt-to-equity ratio of 0.07, a quick ratio of 4.40 and a current ratio of 4.52. The company has a 50 day moving average price of $91.54 and a two-hundred day moving average price of $86.04.

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.