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Sei Investments Company (SEIC)
NASDAQ:SEIC
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SEI Investments Company (SEIC) AI Stock Analysis

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SEIC

SEI Investments Company

(NASDAQ:SEIC)

Rating:79Outperform
Price Target:
$103.00
▲(14.46%Upside)
SEI Investments Company holds a strong overall position due to its solid financial performance, strategic investments, and technical indicators showing moderate bullish momentum. Valuation appears fair, and the positive earnings call reinforces confidence in future growth. Challenges such as margin pressures and growth rate deceleration are notable but do not overshadow the company's strategic strengths.
Positive Factors
Acquisition Synergies
Stratos offers a multi-affiliation model and leverages their own platform, technology, and broker support infrastructure, providing immediate synergies for tuck-in acquisitions.
Earnings Growth
The transformative Stratos transaction should be accretive to EPS and provide a new growth driver for the company.
Strong Pipeline
Management pointed to an extremely strong pipeline in Investment Managers, driven by several large alternative managers that are growing at a rapid pace.
Negative Factors
Interest Rate Impact
Spread income has been a meaningful driver of earnings and should switch to a headwind once the Fed starts easing, which should limit earnings growth.
Margin Pressure
Margin decline from 28.5% to 26.6% reflects previously announced investments and hiring to support growth.
Valuation Concerns
After the recent run-up, the stock is trading at 17 times 2026 EPS versus a historical average of 16 times, suggesting that stock upside is likely to be limited.

SEI Investments Company (SEIC) vs. SPDR S&P 500 ETF (SPY)

SEI Investments Company Business Overview & Revenue Model

Company DescriptionSEI Investments Company 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. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.
How the Company Makes MoneySEI Investments Company makes money through a diversified revenue model that primarily includes asset management fees, investment processing fees, and professional services fees. The company generates revenue by providing technology-driven platforms and solutions to manage investment operations for its clients, which include financial institutions, corporations, and private investors. Key revenue streams include fees based on assets under management (AUM), transaction-based fees for processing investment operations, and subscription or service fees for the use of its platforms and solutions. Additionally, SEI partners with various financial institutions to extend its reach and enhance its service offerings, contributing to its earnings.

SEI Investments Company Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 0.01%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
SEI's earnings call highlighted strategic investments and record sales, with improvements in asset management flows and EPS growth. However, challenges included private banking delays and margin declines. Despite these issues, the overall sentiment leans positive due to strong strategic positioning and leadership expansion.
Q2-2025 Updates
Positive Updates
Strategic Investment in Stratos
SEI announced a transformative strategic investment in Stratos, a leader in the independent advisory space, to enhance its client-centric model and integrate with SEI's technology and investment management capabilities.
Record Net Sales Events
SEI realized nearly $30 million in net sales events in Q2, marking a new record on a trailing 12-month basis, driven by strong momentum in the Investment Manager segment.
Leadership Expansion
SEI appointed Karin Risi and Tom Naratil to its Board of Directors, bringing significant experience from Vanguard and UBS, respectively, to strengthen strategic insight and leadership.
Improved Asset Management Flows
AUM net flows were roughly flat in the first half of 2025 compared to several billion of net outflows in the same period last year, indicating improvement in asset management strategies.
EPS Growth
Excluding one-time items, SEI realized an EPS of $1.20, reflecting an increase from both the prior year and prior quarter.
Negative Updates
Private Banking Delays
Private Banking experienced delays in net sales events due to market volatility in April, affecting Q2 performance.
Sequential Margin Decline
Consolidated operating margins declined sequentially, impacted by onetime expenses and corporate overhead, despite year-over-year improvement.
Hiring and Cost Challenges
The decline in margins for the Investment Managers segment was attributed to hiring ahead of expected new business and delayed hiring plans from the first quarter.
Company Guidance
During SEI's Second Quarter 2025 Earnings Call, the company highlighted several key metrics and strategic initiatives. SEI reported an EPS of $1.78, which included significant one-time gains contributing $0.60 to EPS, and excluding these, the EPS was $1.20. The company achieved nearly $30 million in net sales events, with the Investment Manager segment leading the way and setting a new record on a trailing 12-month basis. SEI's Assets Under Management (AUM) and Assets Under Administration (AUA) grew sequentially and year-over-year. Despite a step down in margins due to ongoing investments in talent and technology, SEI is focused on maintaining strong operating leverage. The firm also discussed its transformative strategic investment in Stratos, which is expected to enhance long-term shareholder value. SEI's sales pipeline remains robust, particularly in the investment management sector, with significant interest from alternative asset managers. The company anticipates continued investments to support future growth while maintaining a disciplined capital allocation strategy.

SEI Investments Company Financial Statement Overview

Summary
SEI Investments Company demonstrates a robust financial position with high profitability, efficient operations, and solid balance sheet management. The company has a strong gross profit margin, healthy revenue growth, and minimal leverage, although there are moderate growth challenges with a slight reduction in total assets and decreased operating cash flow.
Income Statement
85
Very Positive
The company exhibits a robust financial performance with a strong gross profit margin of 62.3% and a net profit margin of 31.2% in TTM (Trailing-Twelve-Months), indicating high profitability. Revenue growth rate is healthy at 3.78% over the past year, showing consistent business expansion. The EBIT and EBITDA margins are also strong at 27% and 39.9% respectively, highlighting operational efficiency. However, the revenue growth has slowed compared to previous years.
Balance Sheet
80
Positive
SEI Investments Company maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, suggesting minimal leverage and reduced financial risk. The equity ratio is high at 89%, indicating strong equity financing. Return on equity (ROE) is impressive at 29.5%, reflecting efficient use of shareholders' funds. However, there has been a slight reduction in total assets over the past year.
Cash Flow
82
Very Positive
The company demonstrates strong cash flow management with operating cash flow to net income ratio of 0.93 and free cash flow to net income ratio of 0.88, indicating effective conversion of income into cash. The free cash flow growth rate stands at 7.44%, showing positive cash flow expansion. Despite stable cash flow performance, there has been a decrease in operating cash flow compared to the previous year.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.13B1.92B1.99B1.92B1.68B
Gross Profit1.13B984.14M1.05B1.09B945.99M
EBITDA822.55M669.21M561.23M646.92M530.43M
Net Income581.19M462.26M475.47M546.59M447.29M
Balance Sheet
Total Assets2.72B2.52B2.38B2.35B2.17B
Cash, Cash Equivalents and Short-Term Investments869.47M866.03M885.16M853.48M818.69M
Total Debt32.13M25.35M29.13M78.97M42.64M
Total Liabilities432.49M388.18M429.73M493.57M427.35M
Stockholders Equity2.25B2.13B1.95B1.86B1.74B
Cash Flow
Free Cash Flow565.78M388.24M491.63M580.57M410.12M
Operating Cash Flow622.34M447.03M566.12M633.10M488.68M
Investing Cash Flow-117.30M-141.54M-89.81M-164.88M-67.50M
Financing Cash Flow-494.40M-331.32M-437.24M-422.32M-482.13M

SEI Investments Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price89.99
Price Trends
50DMA
87.38
Positive
100DMA
81.39
Positive
200DMA
80.57
Positive
Market Momentum
MACD
1.02
Positive
RSI
50.97
Neutral
STOCH
34.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEIC, the sentiment is Neutral. The current price of 89.99 is below the 20-day moving average (MA) of 91.66, above the 50-day MA of 87.38, and above the 200-day MA of 80.57, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEIC.

SEI Investments Company Risk Analysis

SEI Investments Company disclosed 43 risk factors in its most recent earnings report. SEI Investments Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SEI Investments Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$11.18B16.8730.06%1.09%10.60%40.74%
76
Outperform
$9.59B23.035.74%3.78%6.20%
73
Outperform
$6.00B16.5012.81%0.02%-6.37%-28.43%
72
Outperform
$6.78B17.118.55%3.64%17.41%-4.75%
70
Outperform
$22.50B20.6220.38%2.21%81.86%
64
Neutral
$6.67B10.937.19%189.25%24.07%5.12%
64
Neutral
$12.99B35.842.84%5.12%7.02%-60.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEIC
SEI Investments Company
89.99
23.67
35.69%
AMG
Affiliated Managers
215.77
31.91
17.36%
BEN
Franklin Resources
24.82
3.58
16.85%
IVZ
Invesco
21.81
5.62
34.71%
CG
Carlyle Group
63.45
17.28
37.43%
JHG
Janus Henderson Group
43.13
8.26
23.69%

SEI Investments Company Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
SEI Investments Announces Board Resignation and Appointments
Positive
Jul 22, 2025

On July 22, 2025, SEI Investments Company announced the resignation of Stephanie D. Miller from its Board of Directors, effective upon acceptance, and the subsequent appointment of Karin Risi and Tom Naratil to the Board. This leadership change is part of SEI’s strategy to enhance its transformation and commitment to long-term growth. Risi and Naratil bring extensive experience in wealth management and financial services, expected to provide strategic insights that will support SEI’s ongoing innovation and adaptation to industry dynamics. Their appointments reflect SEI’s focus on leveraging opportunities for growth in a competitive landscape.

The most recent analyst rating on (SEIC) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on SEI Investments Company stock, see the SEIC Stock Forecast page.

M&A Transactions
SEI Investments Sells Family Office Services to Aquiline
Positive
Jul 1, 2025

On July 1, 2025, SEI Investments Company announced the completion of the sale of its Family Office Services business to Aquiline Capital Partners, effective June 30, 2025. The business will now operate under the name Archway, providing integrated technology and outsourced services for family offices and financial intermediaries. This acquisition is expected to enhance the Archway Platform and drive industry adoption, supporting the success of Archway’s clients.

The most recent analyst rating on (SEIC) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on SEI Investments Company stock, see the SEIC Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividends
SEI Investments Declares Dividend at Annual Meeting
Neutral
May 28, 2025

On May 28, 2025, SEI Investments Company held its Annual Meeting of Shareholders where key decisions were made, including the election of directors for terms expiring in 2028 and the approval of executive compensation. Additionally, the appointment of KPMG LLP as the independent registered public accountants for 2025 was ratified. On the same day, SEI’s Board of Directors declared a semi-annual dividend of $0.49 per share, payable on June 17, 2025, to shareholders of record on June 9, 2025.

The most recent analyst rating on (SEIC) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on SEI Investments Company stock, see the SEIC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025