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

Key Points

• SEI Investments beat EPS expectations with $1.44 vs. a $1.29 consensus, prompting a premarket gap up (opened $89.14 vs. prior close $84.79) and trading around $90.77 on strong volume.
• Revenue of $622.18 million missed estimates ($641.82M) despite a 12.9% year-over-year increase, while profitability metrics remained solid (net margin 31.14% and ROE 30.26%).
• Insiders have been net sellers (146,447 shares sold in the last 90 days, including CEO Ryan Hicke's 80,000-share sale), while analysts maintain a consensus Moderate Buy rating with a $106.83 average price target.

Shares of SEI Investments Company (NASDAQ:SEIC - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. 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 trading hands.

The asset manager reported $1.44 EPS for the quarter, beating the consensus estimate of $1.29 by $0.15. The business had revenue of $622.18 million during the quarter, compared to analyst estimates of $641.82 million. SEI Investments had a net margin of 31.14% and a return on equity of 30.26%. The company's quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the business posted $1.17 EPS.

Analyst Ratings Changes

Several research firms have commented on SEIC. Keefe, Bruyette & Woods cut their price target on SEI Investments from $107.00 to $95.00 and set an "outperform" rating for the company in a report on Wednesday, April 8th. UBS Group initiated coverage on shares of SEI Investments in a research note on Wednesday, February 4th. They set a "buy" rating and a $115.00 price target for the company. Raymond James Financial reiterated an "outperform" rating and issued a $117.00 price objective on shares of SEI Investments in a research note on Monday, January 5th. Piper Sandler reiterated an "overweight" rating and set a $105.00 price objective on shares of SEI Investments in a research note on Thursday. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of SEI Investments in a report on Tuesday. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $106.83.

Insider Buying and Selling at SEI Investments

In other news, insider Mark Andrew Warner sold 4,000 shares of the firm's stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $81.74, for a total value of $326,960.00. Following the sale, the insider directly owned 921 shares in the company, valued at approximately $75,282.54. This trade represents a 81.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ryan Hicke sold 80,000 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 197,164 shares in the company, valued at approximately $17,224,247.04. This trade represents a 28.86% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 146,447 shares of company stock valued at $12,318,659. 14.60% of the stock is currently owned by corporate insiders.

Institutional Trading of SEI Investments

Several institutional investors and hedge funds have recently bought and sold shares of the business. Ashton Thomas Private Wealth LLC increased its holdings in SEI Investments by 349.2% in the third quarter. Ashton Thomas Private Wealth LLC now owns 63,902 shares of the asset manager's stock valued at $5,422,000 after buying an additional 49,676 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S raised its holdings in shares of SEI Investments by 3,554.3% during the third quarter. BI Asset Management Fondsmaeglerselskab A S now owns 27,042 shares of the asset manager's stock valued at $2,295,000 after acquiring an additional 26,302 shares during the last quarter. Vanguard Group Inc. raised its stake in SEI Investments by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 11,260,591 shares of the asset manager's stock valued at $955,461,000 after purchasing an additional 30,970 shares during the last quarter. Allianz Asset Management GmbH lifted its stake in shares of SEI Investments by 21.1% in the third quarter. Allianz Asset Management GmbH now owns 174,266 shares of the asset manager's stock worth $14,786,000 after buying an additional 30,411 shares in the last quarter. Finally, M&G PLC purchased a new position in SEI Investments in the 3rd quarter worth approximately $10,413,000. 70.59% of the stock is currently owned by institutional investors and hedge funds.

SEI Investments Stock Performance

The stock has a 50-day moving average of $79.34 and a 200 day moving average of $81.86. 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 stock has a market cap of $11.01 billion, a PE ratio of 16.15 and a beta of 0.94.

SEI Investments Company Profile

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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