SEI Inv Executive Chairman Trades Company's Stock

On May 13, a recent SEC filing unveiled that Alfred P. West Jr.,, Executive Chairman at SEI Inv SEIC made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Jr., sold 140,000 shares of SEI Inv. The total transaction value is $9,605,400.

The latest update on Monday morning shows SEI Inv shares down by 0.0%, trading at $68.5.

All You Need to Know 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.

Understanding the Numbers: SEI Inv's Finances

Positive Revenue Trend: Examining SEI Inv's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.05% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 51.49%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): SEI Inv's EPS is below the industry average. The company faced challenges with a current EPS of 1.0. This suggests a potential decline in earnings.

Debt Management: SEI Inv's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.72, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 4.65, 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): At 11.63, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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.