Insider Decision: Alfred P. West Jr., Offloads $4.83M Worth Of SEI Inv Stock

Disclosed on August 27, Alfred P. West Jr.,, Executive Chairman at SEI Inv SEIC, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Jr., executed a sale of 71,582 shares of SEI Inv with a total value of $4,833,444.

SEI Inv shares are trading down 0.0% at $67.24 at the time of this writing on Tuesday morning.

Discovering SEI Inv: A Closer Look

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 Financial Performance

Positive Revenue Trend: Examining SEI Inv's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.12% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Evaluating Earnings Performance:

• Gross Margin: With a high gross margin of 53.66%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): SEI Inv's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.06.

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

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 17.6 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 4.48, 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): With a lower-than-industry-average EV/EBITDA ratio of 10.94, SEI Inv presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.