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Investing.com - Raymond (NSE:RYMD) James raised its price target on SEI Investments (NASDAQ:SEIC) to $115.00 from $94.00 on Monday, while maintaining an Outperform rating on the stock. The new target represents significant upside from the current price of $92.66, with the stock already trading near its 52-week high of $93.75.
The investment firm cited SEI’s sustained improvement in sales activity, noting the company posted record-high sales results in the first quarter of 2025. According to InvestingPro data, SEI has achieved impressive revenue growth of 10.33% over the last twelve months, with a robust gross profit margin of 79%.
Raymond James highlighted that SEI expanded its operating margin to the highest level in three years, demonstrating the company’s expense discipline alongside its sales growth.
The firm expressed confidence that the combination of improving sales activity and expense management should translate to stronger core revenue growth and healthy incremental margins for SEI Investments.
Raymond James believes these factors should lead to a higher stock valuation, paired with an improving earnings per share growth outlook that offers an attractive risk/reward profile.
In other recent news, SEI Investments Company reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.17, compared to the forecasted $1.15. However, the company’s revenue slightly missed expectations, coming in at $551.34 million against a projected $556.76 million. Piper Sandler, an analyst firm, raised SEI Investments’ stock price target to $79 from $74, maintaining a Neutral rating, following the company’s strong quarterly performance and record sales events. The firm also noted SEI’s improved operating margins, which increased to 28.5% from 27.5%.
SEI Investments announced a semi-annual dividend of $0.49 per share, emphasizing its commitment to returning value to shareholders. Additionally, the company promoted Sean Lawlor and Lori Wayne to key leadership roles within its Investment Managers business. These promotions are part of SEI’s strategic efforts to bolster its traditional investment arm and enhance client relationships.
SEI’s leadership emphasized the company’s strong cash position, with over $700 million and no long-term debt, which supports its strategic growth initiatives, including new product launches and acquisitions. Despite the macroeconomic volatility, SEI’s management reported no observed slowdown in business activity, which they continue to monitor closely.
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