Sell Alert: Alfred P. West Jr., Cashes Out $10.61M In SEI Inv Stock

Alfred P. West Jr.,, Executive Chairman at SEI Inv SEIC, disclosed an insider sell on March 28, according to a recent SEC filing.

What Happened: Jr.,'s recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 150,000 shares of SEI Inv. The total transaction value is $10,612,500.

The latest market snapshot at Friday morning reveals SEI Inv shares down by 0.17%, trading at $71.9.

About SEI Inv

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 $99 billion in assets under management. As of December 2023, SEI (including LSV) manages, administers, or advises about $1.4 trillion in assets.

SEI Inv's Economic Impact: An Analysis

Positive Revenue Trend: Examining SEI Inv's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.19% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 50.48%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): SEI Inv's EPS reflects a decline, falling below the industry average with a current EPS of 0.92.

Debt Management: SEI Inv's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.81 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 5.01, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.87 reflects market recognition of SEI Inv's value, positioning it as more highly valued compared to industry peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 Inv's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.