A substantial insider sell was reported on May 16, by Michael Peterson, Executive Vice President at SEI Investments SEIC, based on the recent SEC filing.
What Happened: Peterson’s recent move involves selling 50,000 shares of SEI Investments. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $4,213,500.
SEI Investments‘s shares are actively trading at $84.35, experiencing a down of 0.5% during Friday’s morning session.
All You Need to Know About SEI Investments
SEI Investments provides investment processing, management, and operations services to financial institutions, asset managers, asset owners, and financial advisors in four material segments: private banks, investment advisors, institutional investors, and investment managers. SEI also has a minority interest in LSV Asset Management, a value equity asset manager with about $87 billion in assets under management. As of December 2024, SEI (including LSV) manages, administers, or advises about $1.6 trillion in assets.
Understanding the Numbers: SEI Investments’s Finances
Revenue Growth: SEI Investments displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 7.77%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.
Holistic Profitability Examination:
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Gross Margin: Achieving a high gross margin of 55.13%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): SEI Investments’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.2.
Debt Management: SEI Investments’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 18.47 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.13 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 11.6, SEI Investments presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Uncovering the Importance of Insider Activity
Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Transaction Codes To Focus On
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of SEI Investments’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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