Sell Alert: Alfred P. West Jr., Cashes Out $382K In SEI Inv Stock

Disclosed on August 30, Alfred P. West Jr.,, Executive Chairman at SEI Inv SEIC, executed a substantial insider sell as per the latest SEC filing.

What Happened: Jr., opted to sell 5,670 shares of SEI Inv, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $382,725.

During Friday's morning session, SEI Inv shares down by 0.0%, currently priced at $67.46.

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.

Unraveling the Financial Story of SEI Inv

Revenue Growth: SEI Inv's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.12%. This signifies a substantial increase in the company's 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.

Profitability Metrics:

• 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 the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 17.66 is lower than the industry average, implying a discounted valuation for SEI Inv's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 4.49, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 10.98 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Navigating the World of Insider Transaction Codes

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.