Morgan Stanley has boosted its price target for SEI Investments (SEIC, Financial) from $77 to $82, maintaining an Overweight rating on the stock. This decision follows a standout quarter for SEI Investments, which surpassed earnings expectations by 4%. This performance was bolstered by strong revenue figures and effective cost management.
The firm noted that SEI Investments achieved a pre-tax margin of 28.5%, marking the highest level in the past three years. Analysts are optimistic about the company's trajectory, highlighting the favorable conditions and successful strategies reflected in the latest financial results.
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 6.99% from the current price of $77.58. 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 downside of 4.91% from the current price of $77.58. 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.
