SEI Investments Hits 52-Week High: Should You Buy the Stock Now?

Zacks2024-12-09

SEI Investments Company SEIC shares touched a new 52-week high of $84.55 during Friday’s trading session. Quarter to date, the stock has risen 21.5%, outperforming the industry and the Zacks Finance ...

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Quarter to date, the stock has risen 21.5%, outperforming the industry and the Zacks Finance ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sei-investments-hits-52-week-153900282.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SEI Investments Hits 52-Week High: Should You Buy the Stock Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSEI Investments Hits 52-Week High: Should You Buy the Stock Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-09 23:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sei-investments-hits-52-week-153900282.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SEI Investments Company SEIC shares touched a new 52-week high of $84.55 during Friday’s trading session. Quarter to date, the stock has risen 21.5%, outperforming the industry and the Zacks Finance ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sei-investments-hits-52-week-153900282.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CAGR","symbol_name":"California Grapes International, Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/sei-investments-hits-52-week-153900282.html","article_id":"2490770807","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/urh9kFHgpMG9FrsFlUHKyA--~B/aD0zOTE7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c6fad3ca7c16d98ecfc2bf948f4cf143"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490770807","pubTimestamp":1733758740,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"SEI Investments Company SEIC shares touched a new 52-week high of $84.55 during Friday’s trading session. Quarter to date, the stock has risen 21.5%, outperforming the industry and the Zacks Finance sector. Also, SEIC stock has fared better than its peers — T. Rowe Price Group, Inc. TROW and Virtus Investment Partners, Inc. VRTS.Does SEIC stock have more upside left despite hitting a 52-week high?Factors Likely to Drive SEI Investments’ Stock Higher","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CAGR":"California Grapes International, Inc.","VRTS":"维德思投资","BK4585":"ETF&股票定投概念","BK4567":"ESG概念","BK4588":"碎股","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4159":"经销商","BK4135":"资产管理与托管银行","SEIC":"SEI Investments Company","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","TROW":"普信集团","BK4179":"石油天然气设备与服务","SEI":"Solaris Energy Infrastructure, Inc."},"translate_title":"SEI Investments触及52周高点：您现在应该购买该股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VRTS":1,"TROW":1,"SEIC":1,"SEI":1,"CAGR":1},"content_text":"SEI Investments Company SEIC shares touched a new 52-week high of $84.55 during Friday’s trading session. Quarter to date, the stock has risen 21.5%, outperforming the industry and the Zacks Finance sector. Also, SEIC stock has fared better than its peers — T. Rowe Price Group, Inc. TROW and Virtus Investment Partners, Inc. VRTS.\nQuarter-to-Date Price Performance\nImage Source: Zacks Investment Research\nDoes SEIC stock have more upside left despite hitting a 52-week high? Let’s try to find out.\nFactors Likely to Drive SEI Investments’ Stock Higher\nImpressive Stock Market Rally to Aid Revenues: On Nov. 5, the U.S. presidential elections were held, resulting in a win for Donald Trump. The expansionary stance of the President-elect fueled the equity markets rally, with the S&P 500 index crossing the 6,000 mark for the first time on Nov. 8. Further, the index hit an all-time high in Friday’s trading session, demonstrating that the momentum is still ongoing.Given the ongoing rally, SEIC will likely witness higher inflows into investment products as investors will likely continue to participate in equity markets to generate higher returns. This will boost the company’s fee-based revenues and assets under management (AUM). Moreover, anticipated corporate tax cuts will likely enhance profitability.Additionally, the Federal Reserve has started lowering interest rates (50 basis points or bps cut announced in September and 25 bps in November). The market is anticipating another 25-bps rate cut next week. This, along with future rate cuts, will support SEIC’s AUM, as higher profitability for the firms in general will lead to higher valuations, thus boosting equity markets further.Also, the company’s diversified products, solid revenue mix and strong global presence will likely aid the company’s revenue growth.SEI Investments’ total revenues witnessed a compound annual growth rate (CAGR) of 3.4% over the last five years (2018-2023), while total assets under management, advisement and administration witnessed a CAGR of 9.7%. The uptrend continued for both metrics during the first nine months of 2024.\nRevenue Growth Trend\nImage Source: Zacks Investment Research\nThe Zacks Consensus Estimate for sales implies growth of 10.9% and 7.1% for 2024 and 2025, respectively.Technological Enhancements: Technology remains the backbone of SEI Investments’ businesses. The company’s primary business platform — Investment Processing — delivers its outsourced software and processing services through TRUST 3000 and the SWP. Revenues generated by these two are recorded under information processing and software servicing fees.Though the metric recorded a decline in 2019, 2020 and 2023, it reflected a CAGR of 2.7% over the five years ending in 2023. The uptrend continued in the first nine months of 2024. The company’s strategic acquisitions, including Oranj's cloud-native technology platform, Finomial and Novus complement its technological advancement efforts. Also, the company has been undertaking several initiatives to boost technology to support advisors.These initiatives and constant innovations in software will likely aid SEIC in capturing new clients.Solid Balance Sheet Position: As of Sept. 30, 2024, SEIC’s total debt (comprising long-term operating lease liabilities and other long-term liabilities) was $43.5 million, significantly lower than the cash and cash equivalents of $901.1 million.Given a solid balance sheet position, the company’s capital distribution activities remain encouraging. In December 2023, SEI Investments hiked its semi-annual dividend by 7%, following a 7.5% hike in December 2022.The company has hiked its dividend five times in the last five years with an annualized dividend growth of 6.9%.\nDividend Yield\nImage Source: Zacks Investment Research\nSimilarly, TROW and VRTS have increased their dividends five times over the past five years.\nMoreover, SEIC has an existing repurchase plan in place as well. As of Sept. 30, 2024, roughly $30 million worth of authorization remained available. In October 2024, it increased its buyback authorization by $400 million.Hence, a solid liquidity profile and robust balance sheet enable the company to address its near-term debt obligations and sustain its capital distributions.Strategic Acquisitions: SEI Investments remains engaged in pursuing opportunistic acquisitions to aid its revenue growth and expand its footprint globally. In December 2023, the company acquired Altigo to boost its presence in the alternative space.Further, in November 2023, SEIC acquired the National Pensions Trust, bolstering its presence in the defined contribution market, while in 2021, it acquired Atlas Master Trust. Both acquisitions deepen the company’s presence in the United Kingdom’s growing market for institutional investor services.A strong balance sheet enables SEIC to pursue strategic buyouts in the future to expand its presence and enhance revenues.\nBullish Analyst Sentiments on SEIC Stock\nOver the past month, the Zacks Consensus Estimate for 2024 earnings of $4.41 has moved marginally upward, while the same for 2025 earnings of $4.88 per share has moved 1% upward.\nEstimate Revision Trend\nImage Source: Zacks Investment Research\nThe projected figures imply a rise of 27.5% and 10.6% for 2024 and 2025, respectively.\nFinal Thoughts on SEIC Stock\nInterest rate cuts, strategic buyouts, technological enhancements and a solid balance sheet are likely to support SEI Investments’ financials. Moreover, the incoming regime’s expansionary moves will further complement the company’s AUM growth to boost its top line.Thus, SEIC stock remains an attractive bet for investors at the moment.SEIC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nT. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report\nVirtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report\nSEI Investments Company (SEIC) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490770807"}