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

SEI Investments (NASDAQ:SEIC) released its quarterly earnings results on Wednesday. The asset manager reported $1.66 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $636.35 million. During the same quarter in the previous year, the firm posted $1.78 EPS. The firm’s quarterly revenue was up 14.7% on a year-over-year basis.

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 Up 1.1%

NASDAQ SEIC opened at $98.75 on Thursday. SEI Investments has a 12 month low of $75.08 and a 12 month high of $100.79. The company has a market capitalization of $11.88 billion, a P/E ratio of 16.85 and a beta of 0.97. The company’s 50 day simple moving average is $91.44 and its 200 day simple moving average is $85.95. The company has a debt-to-equity ratio of 0.07, a current ratio of 4.52 and a quick ratio of 4.40.

SEI Investments Dividend Announcement

The firm also recently announced a dividend, which was paid on Tuesday, June 16th. Investors of record on Monday, June 8th were issued a $0.52 dividend. This represents a dividend yield of 118.0%. The ex-dividend date was Monday, June 8th. SEI Investments’s payout ratio is presently 17.75%.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on SEIC shares. Keefe, Bruyette & Woods lifted their price target on shares of SEI Investments from $107.00 to $113.00 and gave the stock an “outperform” rating in a research note on Friday, July 10th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of SEI Investments in a research report on Friday, July 17th. Raymond James Financial boosted their price objective on SEI Investments from $122.00 to $124.00 and gave the company an “outperform” rating in a report on Monday, July 6th. Morgan Stanley raised their price target on shares of SEI Investments from $113.00 to $115.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th. Finally, Piper Sandler upped their target price on SEI Investments from $105.00 to $114.00 and gave the company an “overweight” rating in a report on Monday, July 13th. Six research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $116.20.

Insiders Place Their Bets

In other SEI Investments news, Director Kathryn Mccarthy sold 10,000 shares of SEI Investments stock in a transaction that occurred 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 transaction, the director owned 77,883 shares in the company, valued at approximately $7,092,804.81. The trade was a 11.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Chairman Alfred P. West, Jr. sold 50,000 shares of the company’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $87.25, for a total value of $4,362,500.00. Following the completion of the transaction, the chairman directly owned 6,825,783 shares in the company, valued at $595,549,566.75. This represents a 0.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 71,332 shares of company stock worth $6,278,583. 4.80% of the stock is owned by insiders.

Hedge Funds Weigh In On SEI Investments

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Commerce Bank boosted its position in SEI Investments by 1.3% during the fourth quarter. Commerce Bank now owns 10,060 shares of the asset manager’s stock valued at $825,000 after purchasing an additional 133 shares during the last quarter. Focus Partners Advisor Solutions LLC increased its position in shares of SEI Investments by 1.2% during the 4th quarter. Focus Partners Advisor Solutions LLC now owns 11,957 shares of the asset manager’s stock worth $981,000 after purchasing an additional 141 shares during the last quarter. Compound Planning Inc. increased its position in shares of SEI Investments by 7.7% during the 4th quarter. Compound Planning Inc. now owns 2,569 shares of the asset manager’s stock worth $211,000 after purchasing an additional 184 shares during the last quarter. WealthCollab LLC raised its stake in shares of SEI Investments by 33.7% during the 2nd quarter. WealthCollab LLC now owns 766 shares of the asset manager’s stock worth $69,000 after purchasing an additional 193 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in shares of SEI Investments by 60.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 532 shares of the asset manager’s stock worth $41,000 after purchasing an additional 200 shares in the last quarter. Institutional investors and hedge funds own 70.59% of the company’s stock.

SEI Investments News Roundup

Here are the key news stories impacting SEI Investments this week:

• Positive Sentiment: SEI reported Q2 EPS of $1.66, ahead of the $1.44-$1.45 consensus estimate, signaling better-than-expected earnings performance. Article Title
• Positive Sentiment: Quarterly revenue came in at $641.62 million, topping estimates of about $636.35 million and rising 14.7% year over year, which supports the case for healthy business momentum. Article Title
• Positive Sentiment: Operating income increased 33% year over year and operating margin improved to 31%, suggesting stronger operational efficiency and profitability. Article Title
• Neutral Sentiment: Despite the strong quarter, EPS was 11% lower than a year ago, so investors may weigh current outperformance against the year-over-year decline in earnings. Article Title

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.