Philip McCabe, Executive Vice President and Head of Investment Management at SEI Investments Co (NASDAQ:SEIC), has recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, McCabe sold 10,500 shares of common stock on October 28 at an average price of $75.91 per share, totaling approximately $797,055.
This transaction followed an earlier acquisition of 10,500 shares through the exercise of stock options at a price of $40.64 per share, valued at $426,720. After these transactions, McCabe's direct ownership stands at 43,544.45 shares.
In other recent news, SEI Investments has been making considerable progress with its financial performance. The company recently reported a record-breaking third quarter, with earnings per share (EPS) reaching $1.19, surpassing both analyst expectations and consensus estimates. The success of this quarter was largely attributed to higher-than-anticipated revenue in the Private Banking & Trust and Investment Advisors segments.
Moreover, SEI Investments' firmwide operating margins rose to 27% from 26%, and sales events reached a record-breaking $46 million. Piper Sandler, following these developments, raised its price target for SEI Investments to $77, maintaining a neutral stance on the stock. The firm also revised its earnings per share (EPS) projections for the years 2024 and 2025 upward, reflecting confidence in the company's continued financial growth.
In addition, Oppenheimer increased its price target on shares of SEI Investments to $85, maintaining an Outperform rating on the stock. This adjustment was made following SEI Investments' strong third-quarter earnings. Furthermore, SEI Investments' revenue from the Federal Deposit Insurance Corporation (FDIC) cash program is projected to double quarter over quarter in the fourth quarter due to enhancements that increased the cash sweep. These are the recent developments in SEI Investments' financial performance.
InvestingPro Insights
While Philip McCabe's recent stock sale might raise eyebrows, SEI Investments Co (NASDAQ:SEIC) continues to demonstrate strong financial performance and market position. According to InvestingPro data, the company boasts a market capitalization of $9.83 billion and a P/E ratio of 18.26, suggesting a reasonable valuation relative to its earnings.
SEI's revenue growth is noteworthy, with a 12.72% increase in quarterly revenue as of Q3 2024. This growth is complemented by a robust gross profit margin of 78.56% for the last twelve months, indicating efficient operations and strong pricing power in its market segments.
InvestingPro Tips highlight SEI's financial strength and shareholder-friendly policies. The company has maintained dividend payments for an impressive 37 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, SEI's liquid assets exceed short-term obligations, suggesting a healthy balance sheet and financial stability.
It's worth noting that SEI is trading near its 52-week high, with a one-year price total return of 44.38%. This performance, coupled with the fact that 5 analysts have revised their earnings upwards for the upcoming period, indicates positive market sentiment and growth expectations.
For investors seeking more comprehensive analysis, InvestingPro offers 10 additional tips for SEI Investments Co, providing deeper insights into the company's financial health and market position.
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