SEI Investments (NASDAQ:SEIC) has recently been the subject of an in-depth research note issued by investment analysts at StockNews.com. The company received a “hold” rating from the firm, yet there is much more to be gleaned from their analysis and the subsequent earnings data that was released.
On April 20th, SEI Investments announced its quarterly earnings data for the most recent quarter. While the asset manager did report $0.79 earnings per share (EPS), this missed analysts’ consensus estimates by $0.03. Additionally, revenue for the quarter came in at $469.12 million, which only slightly missed the consensus estimate of $468.79 million.
Despite these numbers being lower than anticipated, it’s important to note that SEI Investments still holds a net margin of 20.88% and a return on equity of 22.29%. Plus, as a group, many analysts believe that SEI Investments will post solid earnings per share of 3.38 for the current fiscal year.
In terms of institutional investors and hedge funds taking positions in SEIC, American Century Companies Inc., Private Advisor Group LLC, Bank of Montreal Can, Panagora Asset Management Inc., and Commonwealth of Pennsylvania Public School Empls Retrmt SYS have all made noteworthy changes in regards to their shares over the past few months.
Furthermore, SEI Investments also announced on April 18th that its board had initiated a stock repurchase plan allowing for up to $250 million worth of outstanding shares to be bought back by the company itself through open market purchases.
While these developments may seem overwhelming or confusing at first glance, they are indicative of an intricate network at work within the world of finance and investments. By being attentive to each and every shift in numbers and buying habits from those heavily embedded within this niche sector, we are given access to crucial information that can shape our decision-making processes moving forward.
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SEI Investments Receives Mixed Reviews from Analysts and Insider Sales Raise Investor Concerns
SEI Investments is a leading investment management company headquartered in Oaks, Pennsylvania. Recently, several analysts have weighed in on the company’s stock, offering both positive and negative ratings. Piper Sandler began coverage of SEI Investments shares with a “neutral” rating and a target price of $60.00, while Oppenheimer reaffirmed an “outperform” rating and set its target price at $68.00. On the other hand, Morgan Stanley gave the stock an “underweight” rating and increased its target price from $54.00 to $58.00.
Despite mixed reviews from analysts, SEI Investments seems to be holding steady in the market with shares opening at $58.30 on Thursday. The company has a market capitalization of $7.77 billion, a beta of 1.01, and a price-to-earnings ratio of 20.24 – all solid indicators of stability.
However, some insider sales have taken place recently that may raise concerns for investors. Director Sarah Blumenstein sold 24,454 shares worth over $1.4 million on February 17th in two separate transactions – one filed with the SEC and another disclosed through legal filing channels.
In addition to Blumenstein’s sales, Chairman Alfred P. West Jr also sold 36,462 shares worth over $2 million on March 23rd.
Despite these insider sales totaling over $8 million in the last quarter alone, SEI Investments still holds strong ratings from multiple analysts coupled with impressive indicators like a low beta value.
Investors should keep a watchful eye for any red flags associated with insider activity as they continue to assess their interest in SEIC shares moving forward.
