Oppenheimer has increased its price target for SEI Investments (SEIC, Financial) from $80 to $87, maintaining an Outperform rating on the stock. This adjustment follows SEI's impressive first-quarter earnings results, where the company reported an earnings per share (EPS) of $1.17. This result exceeded both Oppenheimer's projection of $1.14 and the consensus estimate of $1.12.
The robust performance was seen across all of SEI's segments, surpassing expectations for operating margins. Despite prevailing macroeconomic uncertainties, SEI's management highlighted an uninterrupted sales cycle and a stable pipeline in recent weeks.
Additionally, SEI Investments reported a quarter-over-quarter increase in assets under administration (AUA) by 3% and assets under management (AUM) by 2%. This growth was achieved even as the S&P 500 experienced a 4.6% decline over the same period.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for SEI Investments Co (SEIC, Financial) is $83.00 with a high estimate of $94.00 and a low estimate of $79.00. The average target implies an upside of 13.70% from the current price of $73.00. More detailed estimate data can be found on the SEI Investments Co (SEIC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, SEI Investments Co's (SEIC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SEI Investments Co (SEIC, Financial) in one year is $73.77, suggesting a upside of 1.05% from the current price of $73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SEI Investments Co (SEIC) Summary page.
SEIC Key Business Developments
Release Date: April 23, 2025
- Earnings Per Share (EPS): $1.17, an 18% increase year over year.
- Net Sales Events: Record-breaking $47 million in Q1, with $37 million being recurring.
- Operating Profit Margin: Increased to 28.5% for Q1, the highest level in the last three years.
- Investment Advisors Revenue Growth: 11% year-over-year increase, with $21 million from the Integrated Cash Program.
- Share Repurchases: $193 million of stock repurchased in Q1, with a $500 million increase in repurchase authorization.
- Assets Under Management (AUM) and Administration (AUA): Increased on a sequential and year-over-year basis.
- Cash and Debt: Over $700 million in cash and no long-term debt.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SEI Investments Co (SEIC, Financial) reported an 18% year-over-year increase in earnings per share, reaching $1.17.
- The company achieved a record-breaking $47 million in net sales events in Q1, with $37 million being recurring revenue.
- All business segments contributed to growth, each posting higher operating profits and expanded margins.
- SEI Investments Co (SEIC) maintained a strong balance sheet with over $700 million in cash and no long-term debt.
- The company announced a $500 million increase in its share repurchase authorization, reflecting confidence in its stock value.
Negative Points
- Earnings per share declined modestly on a sequential basis due to the seasonality of the tax rate.
- The recent wave of market uncertainty and evolving macroeconomic dynamics could influence pipeline activity.
- Investment Advisors and Institutional Investors saw modest revenue declines due to lower asset balances.
- The sale of the Family Office Services business indicates a strategic shift, which may impact future growth in that segment.
- The company anticipates gradual increases in expenses throughout the year due to hiring and new technology investments, which could pressure margins.
