Alfred P. West Jr., the Executive Chairman of SEI Investments Co. (NASDAQ:SEIC), recently sold a significant amount of the company's stock. Over a series of transactions from November 7 to November 11, West sold a total of 137,099 shares. The sales were executed at prices ranging from $80.24 to $80.81 per share, resulting in a total transaction value of approximately $11 million. Following these transactions, West retains ownership of 7,361,516 shares in SEI Investments.
In other recent news, SEI Investments has been making waves with its strong financial performance. The company reported a record-breaking third quarter, with earnings per share (EPS) of $1.19, surpassing both analyst expectations and consensus estimates. This impressive performance was largely attributed to higher-than-anticipated revenue in the Private Banking & Trust and Investment Advisors segments. The company's assets under management, administration, and advisement achieved new highs, with net sales events totaling $46 million.
The earnings call revealed a 13% revenue increase and a 33% rise in operating income year-over-year. In light of these outcomes, Piper Sandler and Oppenheimer have raised their price targets for SEI Investments to $77 and $85, respectively, reflecting confidence in the company's potential for continued financial growth. Both firms maintain a positive stance on the stock, with Piper Sandler projecting earnings per share for 2024 and 2025 at $4.31 and $4.65, respectively.
Furthermore, SEI Investments' revenue from the Federal Deposit Insurance Corporation (FDIC) cash program is projected to double quarter over quarter in the fourth quarter due to enhancements that increased the cash sweep. These are just a few of the recent developments that have placed SEI Investments in the spotlight.
InvestingPro Insights
While Alfred P. West Jr.'s recent stock sale might raise eyebrows, a closer look at SEI Investments Co. (NASDAQ:SEIC) reveals a company with strong fundamentals and positive market sentiment. According to InvestingPro data, SEIC boasts a market capitalization of $10.41 billion and a P/E ratio of 19.31, suggesting a reasonable valuation relative to its earnings.
The company's financial health appears robust, with revenue growth of 8.53% over the last twelve months and an impressive gross profit margin of 78.56%. This solid performance is reflected in the stock's recent momentum, with a 26.5% price return over the past three months and a 45.9% return over the last year.
InvestingPro Tips highlight SEIC's commitment to shareholder value. The company has raised its dividend for 10 consecutive years and has maintained dividend payments for an impressive 37 consecutive years. This consistent dividend policy, coupled with a current dividend yield of 1.13%, underscores SEIC's financial stability and shareholder-friendly approach.
Moreover, SEIC's strong financial position is evident from another InvestingPro Tip, which indicates that the company's liquid assets exceed its short-term obligations. This financial flexibility provides a cushion for future growth initiatives and potential market uncertainties.
It's worth noting that SEIC is trading near its 52-week high, with the current price at 98.82% of its peak. While this might suggest limited upside potential in the short term, it also reflects the market's confidence in the company's prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips on SEIC, providing a deeper understanding of the company's financial health and market position.
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