SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments is experiencing robust growth across its various segments, significantly benefiting from a rise in asset values, with an impressive margin increase to 48.3% for institutional investors. The firm manages approximately $1.6 trillion in assets, supported by a strong pipeline and positive performance in its Stratos segment, which is achieving a 10% organic growth rate with a 40%+ EBITDA margin in 2024. Additionally, SEI's strategic investments in talent and technology highlight its commitment to future growth, particularly within its Investment Management Services segment.

SEI Investments has experienced a decline in operating margins across its segments, with the private banks segment decreasing to 16.1% and the consolidated operating margin falling to 27.2%. Despite a modest increase in assets under management, management's commentary indicates that margins are expected to remain near current levels, prompting a downward revision of earnings per share estimates for 2025 and 2026. This combination of reduced margins and lower-than-expected core operating performance contributes to an overall negative outlook for the company's stock.