SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments has demonstrated positive growth across its various segments, benefiting from an increase in the institutional investors' margin to 48.3%, reflecting improved profitability. The company manages approximately $1.6 trillion in assets, with expectations of maintaining strong margins due to ongoing investments in talent and technology, which should further bolster revenue streams linked to rising asset values. Additionally, SEI’s subsidiary, Stratos, is experiencing a robust organic growth rate of about 10% in net flows, along with a notable EBITDA margin exceeding 40%, highlighting a favorable financial trajectory and strong market positioning.

SEI Investments has experienced a decline in its operating margin, dropping to 27.2% from 28.5% in the previous quarter, indicating profitability challenges across multiple segments. The company reported a significant decrease in net sales, falling to $29.2 million from $46.6 million in the prior quarter, which signals a potential slowdown in growth and customer acquisition. Additionally, management's projection of stable margins at current low levels through year-end, along with lowered EPS estimates for 2025 and 2026, further supports a negative outlook for the stock.