OAKS, Pa. - SEI Investments Company (NASDAQ:SEIC), a provider of technology and investment solutions for the financial services industry, announced an expansion of its stock repurchase program. The company's Board of Directors has approved an increase of $400 million to the program, bringing the total available authorization to approximately $429 million. This total includes the remaining $29 million from the existing share repurchase authorization.
The decision to augment the stock buyback program reflects the company's ongoing strategy to manage its capital and return value to its shareholders. Stock repurchase programs are often used by companies to buy back their own shares from the marketplace, which can lead to an increase in the value of remaining shares by reducing the supply or for other corporate purposes.
SEI Investments Company is known for its suite of services that cater to corporations, financial institutions, financial professionals, and ultra-high-net-worth families. These services span investment processing, operations, and asset management. As of June 30, 2024, SEI is responsible for managing, advising, or administering assets totaling approximately $1.5 trillion.
The announcement does not detail the specific timing of the repurchases, which will likely depend on market conditions, share price, and other factors. Companies typically carry out repurchases on the open market or through privately negotiated transactions, subject to market regulations.
The expansion of SEI's repurchase program is a financial move that may be of interest to investors and market watchers, as it could potentially impact the company's stock performance. However, it is important to note that such programs do not guarantee market value increase and may be subject to changes based on the company's financial performance and market conditions.
This news is based on a press release statement from SEI Investments Company, and it does not necessarily reflect broader industry trends or imply any future performance. Investors are encouraged to consider this information as part of a broader investment strategy.
In other recent news, SEI Investments has made several noteworthy announcements. The company's Q2 2024 earnings per share (EPS) reached $1.05, with robust revenue of $519 million. Oppenheimer has increased the stock price target for SEI Investments to $81 from $80, maintaining an Outperform rating, anticipating a positive shift in the company's third-quarter earnings per share (EPS). The company's alternative assets under administration have surpassed $1.5 trillion, reinforcing SEI's position as a leading private credit fund administrator globally.
SEI Investments has also released its 2023 Corporate Responsibility Report, outlining its Environmental, Social, and Governance (ESG) initiatives and programs. In a partnership with Canoe Intelligence, SEI launched an enhanced integration aimed at improving operational efficiency for family offices by automating private equity and hedge fund valuations.
Finally, SEI announced the appointment of Michael Lane as Executive Vice President and Head of Asset in North America. These recent developments underscore SEI Investments' dedication to growth and innovation in the financial industry.
InvestingPro Insights
SEI Investments Company's decision to expand its stock repurchase program aligns well with its strong financial position and commitment to shareholder value. According to InvestingPro data, SEI boasts a market capitalization of $9.25 billion and a P/E ratio of 18.49, indicating a relatively reasonable valuation considering its growth prospects.
An InvestingPro Tip highlights that SEI has raised its dividend for 10 consecutive years, demonstrating a consistent track record of returning value to shareholders. This commitment is further underscored by the company's 37-year streak of maintaining dividend payments, as noted in another InvestingPro Tip. With a current dividend yield of 1.27%, SEI offers a steady income stream to investors alongside potential capital appreciation through share buybacks.
The company's financial health appears robust, with InvestingPro data showing a strong gross profit margin of 78.38% for the last twelve months as of Q2 2024. This high margin suggests SEI has significant pricing power and operational efficiency, which could support its ability to fund the expanded repurchase program without compromising its financial stability.
Moreover, an InvestingPro Tip indicates that SEI's cash flows can sufficiently cover interest payments, further supporting the company's capacity to engage in shareholder-friendly actions like the announced buyback expansion. This financial flexibility, combined with the company's trading near its 52-week high, as another InvestingPro Tip points out, suggests market confidence in SEI's strategic decisions and future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for SEI Investments Company, providing deeper insights into the company's financial health and market position.
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