Zacks Investment Research lowered shares of SEI Investments (NASDAQ:SEIC) from a buy rating to a hold rating in a report issued on Tuesday, December 26th.
According to Zacks, “SEI Investments’ shares have significantly outperformed the industry over the last six months. The performance was supported by the company’s impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. The company is well positioned for organic growth, given its innovative and diverse global investment products and services. Given a solid capital position, the company continues to enhance shareholder value through efficient capital deployment activities. However, persistently increasing expenses will likely hurt bottom line growth. Management expects expenses to remain elevated over the next couple of years due to additional investment spending on services.”
SEIC has been the subject of several other research reports. Mizuho reissued a buy rating and set a $72.00 target price on shares of SEI Investments in a research note on Friday, November 17th. Oppenheimer lifted their price objective on SEI Investments from $60.00 to $67.00 and gave the company an outperform rating in a research note on Thursday, September 28th. Finally, Keefe, Bruyette & Woods reaffirmed a hold rating and issued a $58.00 price objective on shares of SEI Investments in a research note on Sunday, September 3rd. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus price target of $70.25.
Shares of SEI Investments (NASDAQ SEIC) opened at $75.58 on Tuesday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 5.41 and a current ratio of 5.52. The stock has a market capitalization of $11,900.00, a price-to-earnings ratio of 33.00, a price-to-earnings-growth ratio of 2.09 and a beta of 1.40. SEI Investments has a one year low of $47.88 and a one year high of $75.60.
SEI Investments (NASDAQ:SEIC) last posted its earnings results on Wednesday, October 25th. The asset manager reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.06. The company had revenue of $368.02 million during the quarter, compared to analysts’ expectations of $384.43 million. SEI Investments had a return on equity of 27.12% and a net margin of 24.94%. The firm’s quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.53 earnings per share. equities analysts expect that SEI Investments will post 2.36 EPS for the current year.
SEI Investments announced that its Board of Directors has authorized a share buyback plan on Wednesday, October 25th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the asset manager to purchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.
The company also recently disclosed a semiannual dividend, which was paid on Monday, January 8th. Stockholders of record on Wednesday, December 27th were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, December 26th. This is a boost from SEI Investments’s previous semiannual dividend of $0.28. This represents a dividend yield of 0.85%. SEI Investments’s payout ratio is presently 26.20%.
In related news, major shareholder Alfred P. West, Jr. sold 50,000 shares of SEI Investments stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $64.64, for a total value of $3,232,000.00. Following the completion of the transaction, the insider now directly owns 10,619,272 shares in the company, valued at $686,429,742.08. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Sarah Blumenstein sold 5,000 shares of SEI Investments stock in a transaction on Wednesday, November 15th. The shares were sold at an average price of $65.33, for a total value of $326,650.00. The disclosure for this sale can be found here. Insiders sold 136,250 shares of company stock valued at $9,057,050 over the last ninety days. Insiders own 16.50% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted its holdings in SEI Investments by 5.5% during the 2nd quarter. BlackRock Inc. now owns 13,447,854 shares of the asset manager’s stock worth $723,225,000 after buying an additional 697,125 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in SEI Investments by 47.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,907,730 shares of the asset manager’s stock worth $102,598,000 after buying an additional 615,539 shares during the last quarter. Vanguard Group Inc. lifted its holdings in SEI Investments by 2.8% during the 2nd quarter. Vanguard Group Inc. now owns 13,260,600 shares of the asset manager’s stock worth $713,155,000 after buying an additional 357,187 shares during the last quarter. Frontier Capital Management Co. LLC lifted its holdings in SEI Investments by 51.2% during the 3rd quarter. Frontier Capital Management Co. LLC now owns 968,388 shares of the asset manager’s stock worth $59,130,000 after buying an additional 328,037 shares during the last quarter. Finally, Prudential Financial Inc. lifted its holdings in SEI Investments by 88.3% during the 3rd quarter. Prudential Financial Inc. now owns 509,716 shares of the asset manager’s stock worth $31,123,000 after buying an additional 239,000 shares during the last quarter. Hedge funds and other institutional investors own 70.47% of the company’s stock.
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About SEI Investments
SEI Investments Company provides investment processing, investment management and investment operations solutions. The Company provides its solutions to financial institutions, financial advisors, institutional investors, investment managers and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and various other locations around the world.
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