Investment analysts at Keefe, Bruyette & Woods have increased their price target for SEI Investments (NASDAQ: SEIC) from $97.00 to $102.00. This adjustment, noted in a research report issued on October 22, 2023, suggests a potential upside of 17.03% from the company’s current stock price. The brokerage maintains an “outperform” rating on the asset manager’s shares, reflecting positive sentiment among investors.
Several other financial institutions have also provided updates on SEI Investments. Weiss Ratings reaffirmed a “buy (b)” rating on October 8, while Raymond James Financial reiterated an “outperform” rating, setting a price target of $117.00. Similarly, Morgan Stanley increased its price objective from $115.00 to $117.00 with an “overweight” rating. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” on November 11.
Overall, six research analysts have assigned a “buy” rating to SEI Investments, while two have issued a “hold” rating. According to data from MarketBeat, the consensus rating for SEI Investments stands at “Moderate Buy,” with a consensus price target of $107.80.
Recent Financial Performance and Stock Repurchase Plan
SEI Investments reported its quarterly earnings on October 22, revealing an earnings per share (EPS) of $1.30. This figure surpassed analysts’ expectations of $1.25 by $0.05. The company achieved a net margin of 31.09% and a return on equity of 30.21%. Revenue for the quarter reached $578.51 million, slightly below the anticipated $578.75 million, yet reflecting a 7.6% increase from the same quarter last year when the EPS was $1.19.
In a move indicating confidence in its stock value, SEI Investments’ board of directors announced a stock repurchase plan on October 24. This plan allows the company to buy back up to $650 million worth of shares, constituting approximately 6.4% of its total shares outstanding.
Insider Transactions and Institutional Holdings
In related news, Alfred P. West, Jr., Chairman of SEI Investments, sold 24,770 shares on December 3 for an average price of $80.87, amounting to a total of $2,003,149.90. Following this transaction, West retains 6,942,812 shares, valued at approximately $561,465,206.44, marking a decrease of 0.36% in his ownership.
Institutional investors have also been active in adjusting their positions in SEI Investments. For instance, the Arizona State Retirement System increased its holdings by 0.4% in the third quarter, acquiring an additional 129 shares for a total of 31,307 shares. Allworth Financial LP saw a 44.0% increase, now holding 432 shares. Additionally, Ethic Inc. and Fifth Third Bancorp also reported gains in their stakes, reflecting a broader trend of institutional investment in SEIC.
Currently, institutional investors and hedge funds own approximately 70.59% of SEI Investments’ stock, indicating a strong institutional interest in the company.
SEI Investments operates as a global provider of asset management, investment processing, and investment operations solutions. The firm caters to financial institutions, private banks, wealth managers, and family offices, offering services designed to enhance both back-office functions and front-office capabilities. Its technology platforms support various stages of the investment lifecycle, including trade execution, performance reporting, risk analytics, and client communications.
The future performance of SEI Investments remains a focal point for analysts and investors, particularly in light of recent financial results and market adjustments.
