SEI Investments (NASDAQ:SEIC) Issues Quarterly Earnings Results

SEI Investments (NASDAQ:SEIC) announced its earnings results on Wednesday. The asset manager reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.44 by $0.22, FiscalAI reports. The company had revenue of $641.62 million for the quarter, compared to analyst estimates of $636.35 million. SEI Investments had a return on equity of 29.42% and a net margin of 28.85%.The firm’s quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.78 earnings per share.

Here are the key takeaways from SEI Investments’ conference call:

• SEI posted record Q2 results, with revenue up 15%, adjusted operating profit up 36%, and adjusted EPS up 38% versus last year. Management emphasized that growth was broad-based and accompanied by meaningful margin expansion.
• Sales momentum remained strong, as Q2 sales events totaled $43 million and year-to-date sales events reached $110 million. The company said this pipeline is broad-based, increasingly enterprise-wide, and converting into revenue more quickly.
• IMS and private banking were key growth drivers, with IMS revenue up 17% and private banking revenue up 11% in the quarter. Management also highlighted continued margin improvement in private banking, helped by professional services and efficiency initiatives.
• SEI is leaning into new growth initiatives in private markets, retirement, ETFs, and AI/data services. Management cited strong traction in retail alternatives, retirement channels, and SEI Data Cloud, and said these opportunities could become a more meaningful revenue contributor over time.
• Capital returns remain active, but M&A is also a priority; SEI repurchased $112 million of stock in Q2 and said buybacks should increase in the second half of the year. The company also said it has ample liquidity and a healthy acquisition pipeline, including opportunities tied to Stratos.

SEI Investments Stock Performance

Shares of NASDAQ SEIC opened at $96.73 on Friday. The stock has a 50 day simple moving average of $91.54 and a 200-day simple moving average of $86.04. The company has a market cap of $11.63 billion, a PE ratio of 17.06 and a beta of 0.97. The company has a current ratio of 4.52, a quick ratio of 4.40 and a debt-to-equity ratio of 0.07. SEI Investments has a 12-month low of $75.08 and a 12-month high of $102.29.

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 given a dividend of $0.52 per share. The ex-dividend date was Monday, June 8th. This represents a dividend yield of 118.0%. SEI Investments’s payout ratio is currently 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

Analysts Set New Price Targets

Several research firms have commented on SEIC. Piper Sandler boosted their price target on shares of SEI Investments from $114.00 to $120.00 and gave the stock an “overweight” rating in a report on Thursday. Raymond James Financial increased their price target on shares of SEI Investments from $122.00 to $124.00 and gave the stock an “outperform” rating in a report on Monday, July 6th. Weiss Ratings reissued a “buy (b)” rating on shares of SEI Investments in a research note on Friday, July 17th. Keefe, Bruyette & Woods lifted their price objective on SEI Investments from $113.00 to $119.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, UBS Group reaffirmed a “buy” rating and set a $125.00 price objective on shares of SEI Investments in a research note on Thursday. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $122.60.

Insider Transactions at SEI Investments

In related news, Chairman Alfred P. West, Jr. sold 7,332 shares of SEI Investments stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $87.39, for a total transaction of $640,743.48. Following the transaction, the chairman directly owned 6,818,451 shares of the company’s stock, valued at $595,864,432.89. The trade was a 0.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kathryn Mccarthy sold 10,000 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $91.07, for a total value of $910,700.00. Following the completion of the transaction, the director owned 77,883 shares of the company’s stock, valued at $7,092,804.81. This trade represents a 11.38% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 71,332 shares of company stock valued at $6,278,583. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On SEI Investments

A number of hedge funds have recently bought and sold shares of the company. Bank of America Corp DE grew its position in SEI Investments by 4.4% during the second quarter. Bank of America Corp DE now owns 3,160,636 shares of the asset manager’s stock worth $284,015,000 after buying an additional 133,057 shares in the last quarter. First Trust Advisors LP grew its holdings in SEI Investments by 4.4% during the 4th quarter. First Trust Advisors LP now owns 1,800,938 shares of the asset manager’s stock worth $147,713,000 after acquiring an additional 75,919 shares during the period. Invesco Ltd. boosted its holdings in SEI Investments by 4.1% during 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 during the last quarter. Caisse de depot et placement du Quebec increased its position in shares of SEI Investments by 2.8% in the 4th quarter. Caisse de depot et placement du Quebec now owns 1,380,997 shares of the asset manager’s stock valued at $113,269,000 after buying an additional 37,240 shares in the last quarter. Finally, Northern Trust Corp lifted its stake in SEI Investments by 0.9% in the third quarter. Northern Trust Corp now owns 922,620 shares of the asset manager’s stock valued at $78,284,000 after buying an additional 8,155 shares in the last quarter. 70.59% of the stock is currently owned by institutional investors.

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.