SEI Investments (NASDAQ:SEIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “Shares of SEI Investments have underperformed the industry over the past year. The company’s earnings surpassed the Zacks Consensus Estimate in only two of the trailing four quarters. Earnings estimates have been stable ahead of the company’s fourth quarter results. Mounting operating expenses are expected to hurt the company’s bottom-line growth to some extent. As the company continues to invest in improving services, costs will likely increase in the quarters ahead. Although improving revenues and assets under management will boost growth prospects for the company, its increased exposure toward fee-based revenues makes us apprehensive as it might hamper financials in the near term.”
A number of other brokerages also recently issued reports on SEIC. BidaskClub downgraded SEI Investments from a “sell” rating to a “strong sell” rating in a report on Tuesday, October 2nd. ValuEngine downgraded SEI Investments from a “hold” rating to a “sell” rating in a report on Monday, October 8th. Keefe, Bruyette & Woods raised SEI Investments from a “market perform” rating to an “outperform” rating and lowered their price target for the company from $68.00 to $63.00 in a report on Wednesday, October 24th. Rosenblatt Securities began coverage on SEI Investments in a report on Wednesday, December 5th. They issued a “neutral” rating and a $59.00 price target for the company. Finally, TheStreet downgraded SEI Investments from a “b” rating to a “c+” rating in a report on Wednesday, December 12th. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating to the stock. SEI Investments currently has an average rating of “Hold” and a consensus target price of $69.50.
SEI Investments (NASDAQ:SEIC) last announced its quarterly earnings results on Tuesday, October 23rd. The asset manager reported $0.80 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.76 by $0.04. The firm had revenue of $408.68 million during the quarter, compared to the consensus estimate of $410.35 million. SEI Investments had a return on equity of 30.73% and a net margin of 31.46%. The firm’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.63 earnings per share. Equities analysts anticipate that SEI Investments will post 3.17 EPS for the current fiscal year.
SEI Investments announced that its board has authorized a stock buyback plan on Tuesday, December 11th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the asset manager to purchase up to 3.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.
In other news, EVP Wayne Withrow sold 4,997 shares of the stock in a transaction that occurred on Wednesday, December 19th. The stock was sold at an average price of $47.50, for a total value of $237,357.50. Following the completion of the sale, the executive vice president now directly owns 36,711 shares of the company’s stock, valued at $1,743,772.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Alfred P. West, Jr. sold 212,995 shares of the stock in a transaction that occurred on Wednesday, November 28th. The shares were sold at an average price of $53.41, for a total value of $11,376,062.95. Following the completion of the sale, the insider now directly owns 10,144,708 shares of the company’s stock, valued at $541,828,854.28. The disclosure for this sale can be found here. Insiders sold 511,223 shares of company stock valued at $27,124,902 over the last three months. Corporate insiders own 17.30% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Sterling Investment Advisors Ltd. acquired a new stake in shares of SEI Investments in the third quarter valued at approximately $100,000. First Hawaiian Bank acquired a new stake in shares of SEI Investments during the third quarter worth $102,000. SRS Capital Advisors Inc. acquired a new stake in shares of SEI Investments during the third quarter worth $128,000. Flagship Harbor Advisors LLC acquired a new stake in shares of SEI Investments during the second quarter worth $177,000. Finally, FDx Advisors Inc. acquired a new stake in shares of SEI Investments during the third quarter worth $206,000. 69.29% of the stock is owned by institutional investors and hedge funds.
SEI Investments Company Profile
SEI Investments Co is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients.
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