SEI Investments (NASDAQ:SEIC) Posts Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Key Points

• SEI Investments beat quarterly expectations, reporting EPS of $1.66 versus the $1.44 consensus estimate. Revenue also came in slightly ahead of forecasts at $641.62 million.
• The stock traded higher after the results, rising to $98.75 during Wednesday trading and sitting near its 12-month high of $100.79. The company remains financially solid, with a low debt-to-equity ratio of 0.07 and strong liquidity metrics.
• Wall Street sentiment remains positive, with multiple firms raising price targets and a consensus rating of Moderate Buy. The average analyst target price is $116.20.

SEI Investments (NASDAQ:SEIC - Get Free Report) released its quarterly earnings results on Wednesday. The asset manager reported $1.66 EPS for the quarter, beating the consensus estimate of $1.44 by $0.22, FiscalAI reports. SEI Investments had a net margin of 31.17% and a return on equity of 30.70%. The firm had revenue of $641.62 million during the quarter, compared to analyst estimates of $636.35 million. During the same quarter in the prior year, the firm earned $1.78 EPS.

SEI Investments Price Performance

Shares of NASDAQ SEIC traded up $1.10 during midday trading on Wednesday, reaching $98.75. The stock had a trading volume of 815,513 shares, compared to its average volume of 804,222. The stock has a 50-day moving average of $91.31 and a 200-day moving average of $85.83. 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 market capitalization of $11.88 billion, a price-to-earnings ratio of 16.85 and a beta of 0.97. SEI Investments has a 12-month low of $75.08 and a 12-month high of $100.79.

SEI Investments Announces Dividend

The company also recently declared a dividend, which was paid on Tuesday, June 16th. Shareholders of record on Monday, June 8th were given a $0.52 dividend. This represents a dividend yield of 118.0%. The ex-dividend date was Monday, June 8th. SEI Investments's dividend payout ratio is presently 17.75%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SEIC. Raymond James Financial boosted their target price on shares of SEI Investments from $122.00 to $124.00 and gave the company an "outperform" rating in a research report on Monday, July 6th. Piper Sandler lifted their price target on shares of SEI Investments from $105.00 to $114.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Weiss Ratings reissued a "buy (b)" rating on shares of SEI Investments in a research report on Friday. Keefe, Bruyette & Woods upped their price objective on SEI Investments from $107.00 to $113.00 and gave the stock an "outperform" rating in a research note on Friday, July 10th. Finally, Morgan Stanley lifted their target price on SEI Investments from $113.00 to $115.00 and gave the company an "overweight" rating in a research report on Thursday, July 9th. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, SEI Investments has a consensus rating of "Moderate Buy" and an average target price of $116.20.

Insider Activity at SEI Investments

In related news, insider Sanjay Sharma sold 25,000 shares of SEI Investments stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $90.12, for a total transaction of $2,253,000.00. Following the transaction, the insider owned 39,829 shares in the company, valued at approximately $3,589,389.48. The trade was a 38.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark Andrew Warner sold 4,000 shares of the company's stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $91.16, for a total transaction of $364,640.00. Following the completion of the transaction, the insider directly owned 921 shares of the company's stock, valued at $83,958.36. This represents a 81.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 111,332 shares of company stock worth $9,908,883 in the last 90 days. Company insiders own 4.80% of the company's stock.

Institutional Trading of SEI Investments

Several institutional investors have recently made changes to their positions in SEIC. Bank of America Corp DE boosted its stake in SEI Investments by 4.4% in the 2nd quarter. Bank of America Corp DE now owns 3,160,636 shares of the asset manager's stock worth $284,015,000 after purchasing an additional 133,057 shares during the period. First Trust Advisors LP raised its position in shares of SEI Investments by 4.4% during the fourth quarter. First Trust Advisors LP now owns 1,800,938 shares of the asset manager's stock valued at $147,713,000 after buying an additional 75,919 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of SEI Investments by 4.1% in the third quarter. Invesco Ltd. now owns 1,731,523 shares of the asset manager's stock worth $146,920,000 after buying an additional 68,873 shares in the last quarter. Caisse de depot et placement du Quebec lifted its holdings in shares of SEI Investments by 2.8% in the fourth quarter. Caisse de depot et placement du Quebec now owns 1,380,997 shares of the asset manager's stock worth $113,269,000 after buying an additional 37,240 shares in the last quarter. Finally, Northern Trust Corp boosted its position in shares of SEI Investments by 0.9% during the third quarter. Northern Trust Corp now owns 922,620 shares of the asset manager's stock worth $78,284,000 after acquiring an additional 8,155 shares during the last quarter. Hedge funds and other institutional investors own 70.59% of the company's stock.

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.

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