SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments demonstrates a robust financial outlook driven by a significant increase in the institutional investors' margin, which rose to 48.3% from 47.6%, indicating improved profitability. The company has generated positive growth across its segments, leveraging rising asset values to bolster its asset-based revenue, managing approximately $1.6 trillion in assets as of December 2024, including its minority interest in LSV Asset Management. Additionally, SEI's commitment to increasing investments in talent and technology, combined with a healthy pipeline of opportunities, particularly in alternative investments, positions it well for sustained growth and stability in future quarters.

SEI Investments's operating margins have decreased across multiple business segments, with the private banks segment witnessing a decline from 16.7% to 16.1%, and a consolidated operating margin falling to 27.2% from 28.5%. Net sales events also experienced a significant decline, dropping to $29.2 million from $46.6 million in the previous quarter, despite being slightly above an estimated $28.4 million. Additionally, management anticipates margins will remain at these lower levels through year-end, prompting a reduction in EPS estimates for 2025 and 2026, further reflecting a trend of declining profitability in the face of increased investments.