SEI Investments (NASDAQ:SEIC) Issues Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Key Points

• EPS beat: SEI reported Q earnings of $1.44 per share, beating the $1.29 consensus by $0.15, while revenue of $622.2M missed estimates but rose 12.9% year-over-year and the company posted a 31.1% net margin and 30.3% ROE.
• Heavy insider selling: Insiders sold 146,447 shares worth about $12.32M over the past three months, including CEO Ryan Hicke’s sale of 80,000 shares (~$6.99M), leaving insiders with 14.6% ownership.
• Analyst sentiment and upside: The consensus is a “Moderate Buy” (7 Buys, 2 Holds) with an average price target of $105.83, implying notable upside from the recent ~$84.79 stock price.

SEI Investments (NASDAQ:SEIC - Get Free Report) posted its earnings results on Wednesday. The asset manager reported $1.44 earnings per share for the quarter, topping analysts' consensus estimates of $1.29 by $0.15, Zacks reports. SEI Investments had a net margin of 31.14% and a return on equity of 30.26%. The firm had revenue of $622.18 million for the quarter, compared to analyst estimates of $641.82 million. During the same period in the previous year, the firm posted $1.17 EPS. The company's revenue for the quarter was up 12.9% compared to the same quarter last year.

SEI Investments Trading Up 2.0%

NASDAQ SEIC opened at $84.79 on Thursday. The business has a 50 day simple moving average of $79.34 and a 200 day simple moving average of $81.86. SEI Investments has a one year low of $72.21 and a one year high of $93.96. The stock has a market capitalization of $10.26 billion, a P/E ratio of 15.06 and a beta of 0.94. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.29 and a quick ratio of 3.20.

Insiders Place Their Bets

In other news, insider Mark Andrew Warner sold 4,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $81.74, for a total transaction of $326,960.00. Following the completion of the sale, the insider owned 921 shares of the company's stock, valued at $75,282.54. This trade represents a 81.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Ryan Hicke sold 80,000 shares of SEI Investments stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $87.36, for a total transaction of $6,988,800.00. Following the completion of the sale, the chief executive officer owned 197,164 shares of the company's stock, valued at $17,224,247.04. This represents a 28.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 146,447 shares of company stock worth $12,318,659. 14.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of SEIC. Compound Planning Inc. grew its stake in shares of SEI Investments by 7.7% in the 4th quarter. Compound Planning Inc. now owns 2,569 shares of the asset manager's stock worth $211,000 after acquiring an additional 184 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in shares of SEI Investments by 28.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 22,826 shares of the asset manager's stock valued at $1,872,000 after purchasing an additional 5,094 shares in the last quarter. Caitlin John LLC boosted its holdings in SEI Investments by 5,301.8% during the fourth quarter. Caitlin John LLC now owns 5,942 shares of the asset manager's stock worth $487,000 after purchasing an additional 5,832 shares during the last quarter. Front Street Capital Management Inc. purchased a new position in SEI Investments during the fourth quarter worth about $93,000. Finally, Vident Advisory LLC grew its position in SEI Investments by 1.8% in the 4th quarter. Vident Advisory LLC now owns 57,655 shares of the asset manager's stock worth $4,729,000 after purchasing an additional 999 shares in the last quarter. 70.59% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on SEIC. Keefe, Bruyette & Woods dropped their price target on shares of SEI Investments from $107.00 to $95.00 and set an "outperform" rating for the company in a research note on Wednesday, April 8th. UBS Group assumed coverage on shares of SEI Investments in a research note on Wednesday, February 4th. They issued a "buy" rating and a $115.00 price objective on the stock. Raymond James Financial restated an "outperform" rating and issued a $117.00 price objective on shares of SEI Investments in a report on Monday, January 5th. Piper Sandler lowered their target price on SEI Investments from $106.00 to $99.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of SEI Investments in a report on Thursday, January 22nd. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $105.83.

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.