SEI Investments (NASDAQ:SEIC) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

SEI Investments (NASDAQ:SEIC) posted its quarterly earnings results on Wednesday. The asset manager reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.06, FiscalAI reports. SEI Investments had a net margin of 28.06% and a return on equity of 30.32%. The business had revenue of $662.04 million for the quarter, compared to analyst estimates of $656.25 million. During the same quarter last year, the business posted $1.30 EPS. The firm’s revenue for the quarter was up 14.4% on a year-over-year basis.

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

• Third-quarter results exceeded the prior year, with revenue up 14%, adjusted operating profit up 25%, and adjusted EPS up 24%. Adjusted operating margins remained near record levels despite continued investment in technology, AI, professional services, and talent.
• Net sales events totaled $47 million in Q3 and $157 million year to date, already surpassing SEI’s previous full-year record. Management cited strong pipelines across investment managers and private banking, particularly for alternative assets, enterprise transformation, professional services, and first-time outsourcing mandates.
• The company highlighted momentum in growth initiatives, including ETFs, retail transfer agency, alternative investments in collective investment trusts, and Stratos. ETF assets grew to more than $9 billion from roughly $4 billion a year earlier, while management expects transfer-agency revenue to exceed a $10 million annualized run rate by the end of next year.
• SEI said AI is increasing, rather than reducing, client demand for its services as financial firms seek help modernizing operating models, integrating data, and adopting AI. Management also said automation and improved onboarding processes are helping accelerate implementations, although hiring remains necessary to manage current demand.
• Institutional revenue declined 2% year over year, and LSV experienced $5 billion of net outflows despite strong investment performance. GAAP net income was also reduced by a $32.5 million expense tied to terminating Stratos’s planned acquisition of NSC in Mexico, while a $6 million incentive-compensation accrual reduced Q3 operating profit.

SEI Investments Trading Down 0.5%

Shares of SEI Investments stock traded down $0.54 on Friday, reaching $103.96. 49,746 shares of the company’s stock were exchanged, compared to its average volume of 787,666. The company has a market capitalization of $12.48 billion, a P/E ratio of 18.32 and a beta of 0.97. SEI Investments has a 52 week low of $75.08 and a 52 week high of $112.15. The firm’s 50-day moving average is $106.48 and its two-hundred day moving average is $96.92. The company has a debt-to-equity ratio of 0.06, a quick ratio of 4.96 and a current ratio of 5.06.

Insider Activity at SEI Investments

In related news, Chairman Alfred P. West, Jr. sold 5,483 shares of the business’s stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $103.16, for a total transaction of $565,626.28. Following the transaction, the chairman owned 6,784,574 shares in the company, valued at $699,896,653.84. The trade was a 0.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Philip McCabe sold 5,043 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.50, for a total transaction of $532,036.50. Following the transaction, the insider directly owned 54,884 shares in the company, valued at approximately $5,790,262. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 138,777 shares of company stock worth $14,655,833. Corporate insiders own 4.80% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on SEIC shares. Wall Street Zen upgraded SEI Investments from a “hold” rating to a “buy” rating in a research note on Saturday, July 25th. Keefe, Bruyette & Woods boosted their price target on SEI Investments from $113.00 to $119.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Raymond James Financial boosted their price target on SEI Investments from $122.00 to $124.00 and gave the stock an “outperform” rating in a report on Monday, July 6th. Zacks Research downgraded SEI Investments from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $129.00 price objective (up from $127.00) on shares of SEI Investments in a research note on Thursday. Eight research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, SEI Investments presently has a consensus rating of “Moderate Buy” and a consensus price target of $125.50.

About SEI Investments

SEI Investments Company is a financial technology and investment services provider headquartered in Oaks, Pennsylvania. Founded in 1968, the company delivers technology, operations, and investment solutions that help financial institutions and investment professionals manage client assets and business processes.

SEI’s offerings include wealth management and investment processing platforms, portfolio accounting, data management, compliance support, and outsourced middle- and back-office services.