Institutional Investors Bolster SEI Investments Holdings
SEI Investments Company (NASDAQ:SEIC) has recently seen significant activity from institutional investors, signalling growing confidence in the asset manager. During the first quarter, Gallacher Capital Management LLC acquired a new position in SEI Investments, purchasing 2,871 shares valued at approximately $223,000. This new stake is part of a broader trend of institutional investors modifying their holdings in the company.
CoreFirst Bank & Trust, for instance, bought a new stake valued at $31,000 in the fourth quarter. Other firms like Versant Capital Management Inc., First Horizon Advisors Inc., CIBC Private Wealth Group LLC, and Farther Finance Advisors LLC all substantially boosted their positions in SEI Investments during the first quarter. These collective movements indicate a strong and sustained interest from institutional players, who now collectively own 70.59% of the company’s stock, underscoring its appeal within the professional investment community.
Noteworthy Insider Trading Activity at SEIC
While institutional investors are increasing their stakes, SEI Investments has also witnessed notable insider trading activity. Chairman Alfred P. West, Jr., executed a sale of 75,000 shares of the company’s stock on Wednesday, May 28th. The transaction occurred at an average price of $85.78 per share, totalling $6,433,500.00. Following this sale, the chairman’s ownership in the company decreased by 1.06%, leaving him with 7,003,708 shares valued at over $600 million.
In a separate transaction, EVP Michael Peterson sold 50,000 shares on Thursday, May 15th, at an average price of $84.27, amounting to $4,213,500.00. This sale represented a significant 78.74% decrease in his position, leaving him with 13,500 shares. Over the last ninety days, corporate insiders have collectively sold 232,126 shares of company stock, valued at $19,638,659. Despite these insider sales, corporate insiders still retain a substantial 14.30% ownership of the company’s stock, indicating continued alignment with the company’s performance.
SEI Investments Stock Performance and Key Metrics
As of Tuesday, SEI Investments Company shares opened at $90.92. The company’s stock has demonstrated a positive trend, with its fifty-day moving average standing at $87.07 and its 200-day moving average at $81.53, suggesting an upward trajectory. Over the past 52 weeks, SEI Investments has traded within a range, reaching a low of $62.38 and a high of $93.96. The company currently boasts a robust market capitalisation of $11.32 billion.
Its valuation metrics include a Price-to-Earnings (PE) ratio of 19.77, a PEG ratio of 1.58, and a beta of 0.92. These figures collectively paint a picture of a stable company with reasonable valuation in the current market, reflecting its position as a significant player in the asset management sector. The beta value further indicates that the stock’s volatility is slightly less than that of the broader market, appealing to investors seeking relative stability.
Strong Financial Performance and Dividend Growth
SEI Investments continues to demonstrate strong financial performance. The company released its quarterly earnings data on Wednesday, April 23rd, reporting $1.17 earnings per share (EPS) for the quarter. This figure comfortably surpassed analysts’ consensus estimates of $1.12 by a margin of $0.05, showcasing the company’s ability to exceed market expectations. SEI Investments achieved a healthy net margin of 27.77% and an impressive return on equity (ROE) of 26.40%, highlighting its operational efficiency and profitability.
The firm’s revenue for the quarter reached $551.34 million, closely aligning with analysts’ expectations of $556.76 million and representing a solid 7.8% increase compared to the same quarter in the previous year. During the corresponding quarter last year, the company earned $0.99 EPS, indicating consistent growth. Sell-side analysts anticipate that SEI Investments Company will post an EPS of 4.86 for the current year, further reinforcing a positive outlook.
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Consistent Dividend Increases and Payout Ratio
In addition to its strong earnings performance, SEI Investments has consistently rewarded its shareholders through dividends. The business recently declared a quarterly dividend of $0.49 per share, which was paid on Tuesday, June 17th, to investors of record on Monday, June 9th. The ex-dividend date for this payment was also Monday, June 9th. This latest declaration represents an annualised dividend of $1.96 per share, translating to a dividend yield of 2.16% based on current prices.
Notably, this marks an increase from SEI Investments’s previous quarterly dividend of $0.46, underscoring the company’s commitment to returning value to its shareholders and its confidence in future cash flows. The company’s payout ratio currently stands at 21.30%, indicating that it retains a significant portion of its earnings for reinvestment and future growth while still providing a healthy dividend to investors.
Positive Outlook from Wall Street Analysts
SEI Investments has garnered a largely positive outlook from Wall Street analysts, with several firms recently issuing favourable reports and price target adjustments. Piper Sandler increased their price objective on shares of SEI Investments from $79.00 to $96.00 and maintained a “neutral” rating in a research report published on Wednesday, July 2nd. Oppenheimer further boosted their price objective from $96.00 to $101.00 and reiterated an “outperform” rating in a report on Tuesday, July 8th.
Wall Street Zen upgraded shares of SEI Investments from a “hold” rating to a “buy” rating in a research report on Tuesday, May 20th. Morgan Stanley reissued an “overweight” rating and set an increased price objective of $100.00 (up from $84.00) in a research report on Thursday, June 26th. Finally, William Blair reaffirmed a “market perform” rating in a research report on Thursday, April 24th. Based on data from MarketBeat.com, the company holds a consensus rating of “Moderate Buy” among analysts, with a consensus price target of $96.00, suggesting continued upside potential.
SEI Investments: A Leading Asset Management Provider
SEI Investments Company is a publicly owned asset management holding company that operates through its various subsidiaries. The firm specialises in providing a comprehensive suite of financial services, including wealth management solutions, robust retirement and investment solutions, and sophisticated asset management services. Additionally, it offers asset administration, cutting-edge investment processing outsourcing solutions, and expert financial services and investment advisory services to a diverse client base.
SEI Investments’s broad range of offerings positions it as a key player in the financial services industry, catering to a wide spectrum of client needs from individual wealth management to large institutional asset administration. Its consistent performance, strategic institutional interest, and positive analyst outlook underscore its strong market position and potential for continued growth in the asset management sector.
