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

SEI Investments (NASDAQ:SEIC) announced its earnings results on Wednesday. The asset manager reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.22, FiscalAI reports. The business had revenue of $641.62 million for the quarter, compared to analyst estimates of $636.35 million. SEI Investments had a net margin of 31.17% and a return on equity of 30.70%. During the same period last year, the firm posted $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 Price Performance

Shares of NASDAQ:SEIC traded up $1.10 during midday trading on Wednesday, hitting $98.75. 815,513 shares of the stock were exchanged, compared to its average volume of 804,222. SEI Investments has a twelve month low of $75.08 and a twelve month high of $100.79. The company has a current ratio of 4.52, a quick ratio of 4.40 and a debt-to-equity ratio of 0.07. The company has a 50 day moving average price of $91.31 and a 200-day moving average price of $85.83. The stock has a market cap of $11.88 billion, a P/E ratio of 16.85 and a beta of 0.97.

SEI Investments Dividend Announcement

The company also recently declared a dividend, which was paid on Tuesday, June 16th. Stockholders of record on Monday, June 8th were paid a dividend of $0.52 per share. This represents a dividend yield of 118.0%. The ex-dividend date of this dividend was Monday, June 8th. SEI Investments’s payout ratio is 17.75%.

Insider Transactions at SEI Investments

In other news, insider Mark Andrew Warner sold 4,000 shares of the company’s stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $91.16, for a total value of $364,640.00. Following the sale, the insider directly owned 921 shares in the company, valued at $83,958.36. This represents a 81.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Alfred P. West, Jr. sold 7,332 shares of the firm’s 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 sale, the chairman directly owned 6,818,451 shares in the company, valued at $595,864,432.89. This represents a 0.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 111,332 shares of company stock worth $9,908,883 in the last 90 days. Insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SEIC. Compound Planning Inc. grew its holdings in SEI Investments by 7.7% in the fourth quarter. Compound Planning Inc. now owns 2,569 shares of the asset manager’s stock valued at $211,000 after purchasing an additional 184 shares during the period. Mercer Global Advisors Inc. ADV grew its stake in shares of SEI Investments by 28.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 22,826 shares of the asset manager’s stock valued at $1,872,000 after buying an additional 5,094 shares during the period. Caitlin John LLC increased its holdings in shares of SEI Investments by 5,301.8% during the 4th quarter. Caitlin John LLC now owns 5,942 shares of the asset manager’s stock worth $487,000 after buying an additional 5,832 shares during the last quarter. Front Street Capital Management Inc. acquired a new stake in shares of SEI Investments during the 4th quarter worth $93,000. Finally, Vident Advisory LLC boosted its holdings in SEI Investments by 1.8% in the fourth quarter. Vident Advisory LLC now owns 57,655 shares of the asset manager’s stock valued at $4,729,000 after acquiring an additional 999 shares during the last quarter. Institutional investors and hedge funds own 70.59% of the company’s stock.

Analyst Ratings Changes

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

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.