SEI Investments Co. (SEIC) Rating Lowered to Sell at Zacks Investment Research
SEI Investments Co. (NASDAQ:SEIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “SEI Investments has a negative record of earnings surprises in the recent quarters. Further, expenses are expected to remain elevated over the next couple of years due to additional investment spending around services. In addition, increasing dependence on fee-based revenues can adversely affect the company’s financials in the near term. Moreover, a continuing low interest-rate environment and persistent regulatory constraints remain matters of concern. Nonetheless, the company is well positioned for organic growth in the forthcoming quarters based on its innovative and diverse global investment products and services. Further, robust asset inflows will continue to support revenues.”
A number of other analysts also recently commented on SEIC. Keefe, Bruyette & Woods dropped their price target on shares of SEI Investments from $51.00 to $47.00 and set a “market perform” rating on the stock in a research report on Thursday, July 28th. Oppenheimer Holdings Inc. dropped their price target on shares of SEI Investments from $56.00 to $53.00 and set an “outperform” rating on the stock in a research report on Thursday, July 28th.
Shares of SEI Investments (NASDAQ:SEIC) opened at 45.11 on Wednesday. SEI Investments has a 12 month low of $32.01 and a 12 month high of $55.11. The firm has a market cap of $7.28 billion, a price-to-earnings ratio of 23.49 and a beta of 1.26. The company’s 50-day moving average is $45.64 and its 200-day moving average is $47.12.
SEI Investments (NASDAQ:SEIC) last posted its earnings results on Wednesday, July 27th. The company reported $0.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by $0.01. The firm had revenue of $343.83 million for the quarter, compared to analyst estimates of $346.92 million. SEI Investments had a net margin of 23.67% and a return on equity of 24.48%. The company’s revenue for the quarter was up 1.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.51 earnings per share. On average, equities research analysts forecast that SEI Investments will post $1.92 earnings per share for the current fiscal year.
In related news, major shareholder Alfred P. West, Jr. sold 90,000 shares of the firm’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $44.98, for a total transaction of $4,048,200.00. Following the completion of the sale, the insider now directly owns 11,641,864 shares in the company, valued at $523,651,042.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 17.10% of the company’s stock.
A number of hedge funds have recently modified their holdings of the company. Commonwealth Equity Services Inc acquired a new stake in shares of SEI Investments during the first quarter worth $255,000. Aperio Group LLC boosted its stake in shares of SEI Investments by 33.5% in the first quarter. Aperio Group LLC now owns 29,579 shares of the company’s stock worth $1,273,000 after buying an additional 7,416 shares during the last quarter. BlackRock Inc. boosted its stake in shares of SEI Investments by 1.6% in the first quarter. BlackRock Inc. now owns 362,113 shares of the company’s stock worth $15,589,000 after buying an additional 5,667 shares during the last quarter. BlackRock Group LTD boosted its stake in shares of SEI Investments by 0.6% in the first quarter. BlackRock Group LTD now owns 867,393 shares of the company’s stock worth $37,342,000 after buying an additional 5,454 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. boosted its stake in shares of SEI Investments by 2.5% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,263,846 shares of the company’s stock worth $183,559,000 after buying an additional 104,011 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
About SEI Investments
SEI Investments Company (SEI) is a provider of investment processing, investment management and investment operations solutions. The Company enables corporations, financial institutions, financial advisors and ultra-high-net-worth families to create and manage wealth by providing investment and investment-business solutions.
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