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On Thursday, Keefe, Bruyette & Woods maintained a Market Perform rating on SEI Investments (NASDAQ:SEIC) while increasing the price target to $90 from $86. The adjustment follows SEI Investments’ recent financial performance, which was characterized by strong sales momentum and significant share repurchases.
SEI Investments reported a solid quarter, with net sales reaching $38.2 million, a figure surpassed only by the record set in the third quarter. The company’s sales for 2024 saw a 55% increase compared to 2023, signaling robust growth. With revenue growth of 10.7% and a healthy gross profit margin of 78.5%, SEI demonstrates strong operational efficiency. A highlight of the quarter was SEI’s repurchase of $259.5 million worth of shares, marking a record buyback for the firm. InvestingPro subscribers can access additional insights, including 8 key tips about SEI’s financial strength and dividend history.
The financial services company’s momentum is noted to be strong across its operations, with management emphasizing continued progress particularly in the Private Banks (PB) and Investment Managers (IMS) segments. Despite this performance, Keefe, Bruyette & Woods did not make significant changes to their forward estimates for SEI Investments, considering various factors that could affect future results.
The report by Keefe, Bruyette & Woods suggests that growth in the PB and Investment Advisor (IA) segments is expected to balance out the more modest expectations for the Institutional Investors (II) segment and to a lesser extent the IMS segment. The reiterated Market Perform rating indicates that the analyst believes SEI Investments’ stock is expected to perform in line with the broader equity market.
SEI Investments’ strong quarter and positive sales momentum contribute to the firm’s stable outlook, as reflected in the updated price target and maintained rating by Keefe, Bruyette & Woods.
In other recent news, SEI Investments has been experiencing noteworthy developments. The company’s Q4 2024 results showed a slight miss on earnings estimates, with adjusted earnings per share reported at $1.19, compared to the projected $1.21. However, SEI’s revenue exceeded expectations, with a 15% year-over-year growth to reach $557.19 million, surpassing the forecast of $555.63 million.
SEI also reported an increase in its consolidated revenues by 15% year-over-year and a 43% surge in operating income compared to Q4 2023. The firm’s operating margins expanded from 21% to 26%. Additionally, the company’s assets under administration and management saw significant growth, with the former rising 15% to $1.06 trillion and the latter growing 18% to $476.7 billion.
Furthermore, SEI repurchased 3.1 million shares of its common stock for $259.5 million during the fourth quarter. In the world of analyst assessments, Raymond (NSE:RYMD) James upgraded SEI’s stock rating from Market Perform to Outperform, setting a new price target of $99. The upgrade was influenced by SEI’s solid revenue growth and disciplined expense management. The firm’s confidence in SEI’s potential for future growth has been reignited under the leadership of CEO Ryan Hicke.
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