SEI Investments (NASDAQ:SEIC) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

SEI Investments (NASDAQ:SEIC) announced its quarterly earnings results on Wednesday. The asset manager reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.34 by $0.04, Zacks reports. SEI Investments had a net margin of 31.09% and a return on equity of 30.21%. The company had revenue of $607.93 million for the quarter, compared to the consensus estimate of $596.97 million. During the same period in the previous year, the firm posted $1.19 EPS. SEI Investments’s revenue for the quarter was up 9.1% compared to the same quarter last year.

Here are the key takeaways from SEI Investments’ conference call:

• SEI reported a record-like Q4 with EPS of $1.38, broad-based revenue growth and margin expansion across nearly all segments, and management saying Q4 was one of the strongest quarters in company history.
• Sales momentum was strong with $44 million in total quarterly sales events (private banking led with $28 million) and advisors delivering their best net inflow year in over a decade, driven by professional services and product distribution gains.
• The firm completed the first close of its strategic Stratos partnership, which management expects will expand SEI’s advisor-channel reach and drive future roll-ups and organic growth as integration proceeds.
• Near-term results were reduced by roughly $0.08 of EPS from one-time items including ~$20 million of severance and M&A fees (from a targeted ~3% workforce reduction), and management flagged higher depreciation/amortization and ongoing hiring that may pressure near-term margins.
• Capital returns remained robust with $101 million of buybacks in Q4 ($616 million year-to-date, ~6% of shares) and the company exiting the year with $400 million cash, no debt, and a commitment to return 90%-100% of free cash flow to shareholders.

SEI Investments Stock Up 1.7%

Shares of SEI Investments stock opened at $86.10 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.73 and a quick ratio of 5.62. The firm’s 50-day moving average is $83.64 and its two-hundred day moving average is $85.15. SEI Investments has a 1 year low of $64.66 and a 1 year high of $93.96. The stock has a market cap of $10.54 billion, a price-to-earnings ratio of 15.83 and a beta of 0.97.

SEI Investments Dividend Announcement

The company also recently disclosed a dividend, which was paid on Monday, January 12th. Investors of record on Monday, December 29th were issued a $0.52 dividend. This represents a dividend yield of 124.0%. The ex-dividend date was Monday, December 29th. SEI Investments’s payout ratio is presently 19.12%.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Morgan Stanley upped their price objective on SEI Investments from $115.00 to $117.00 and gave the stock an “overweight” rating in a report on Tuesday, January 6th. Piper Sandler upgraded shares of SEI Investments from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $93.00 to $102.00 in a report on Tuesday, December 23rd. Keefe, Bruyette & Woods lifted their target price on SEI Investments from $97.00 to $102.00 and gave the stock an “outperform” rating in a report on Thursday, January 8th. Weiss Ratings restated a “buy (b)” rating on shares of SEI Investments in a report on Thursday, January 22nd. Finally, Raymond James Financial reissued an “outperform” rating and issued a $117.00 price objective on shares of SEI Investments in a research report on Monday, January 5th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $107.80.

Insider Buying and Selling

In other SEI Investments news, Chairman Alfred P. West, Jr. sold 24,770 shares of the company’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $80.87, for a total transaction of $2,003,149.90. Following the completion of the sale, the chairman owned 6,942,812 shares in the company, valued at $561,465,206.44. This represents a 0.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 14.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On SEI Investments

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. WealthCollab LLC boosted its holdings in shares of SEI Investments by 33.7% in the 2nd quarter. WealthCollab LLC now owns 766 shares of the asset manager’s stock valued at $69,000 after buying an additional 193 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in SEI Investments by 60.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 532 shares of the asset manager’s stock valued at $41,000 after purchasing an additional 200 shares during the last quarter. Quadrant Capital Group LLC increased its holdings in shares of SEI Investments by 2.8% in the third quarter. Quadrant Capital Group LLC now owns 8,215 shares of the asset manager’s stock valued at $697,000 after purchasing an additional 220 shares during the period. Private Advisor Group LLC raised its stake in shares of SEI Investments by 8.6% in the third quarter. Private Advisor Group LLC now owns 3,885 shares of the asset manager’s stock worth $330,000 after purchasing an additional 309 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of SEI Investments by 353.1% during the third quarter. CIBC Private Wealth Group LLC now owns 435 shares of the asset manager’s stock worth $37,000 after purchasing an additional 339 shares during the period. Hedge funds and other institutional investors own 70.59% of the company’s stock.

SEI Investments announced that its board has authorized a share buyback program on Friday, October 24th that allows the company to repurchase $650.00 million in shares. This repurchase authorization allows the asset manager to repurchase up to 6.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Key Stories Impacting SEI Investments

Here are the key news stories impacting SEI Investments this week:

• Positive Sentiment: Q4 results beat consensus: SEI reported $1.38 EPS (vs. ~$1.33 consensus) and revenue of ~$607.9M, with revenue up ~9% year-over-year and EPS up ~16% vs. the prior year — indicators of continued top-line growth and operating leverage. SEI Reports Fourth-Quarter 2025 Financial Results
• Positive Sentiment: Beating estimates and strong margins: Analysts noted SEI topped Q4 earnings and revenue estimates; reported operating margin rose to ~27% and net margin/ROE remain robust — supportive for earnings multiple expansion. SEI Investments (SEIC) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Distribution expansion via partnership: SEI will serve as trustee for new collective investment trusts launched with Mackenzie Investments, supporting growth in U.S. institutional presence and potential fee-related AUM growth. Mackenzie Investments Partners with SEI to Expand U.S. Institutional Presence
• Neutral Sentiment: Earnings call transparency: The Q4 2025 earnings call transcript provides management commentary and color on margins, flows and product traction — useful for gauging guidance and pipeline but not an immediate price driver. SEI Investments Company (SEIC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Valuation discussion: Recent commentary assesses SEI’s valuation after recent share moves and highlights potential undervaluation signals — worth reviewing for positioning but mixed implications depending on flow outlook and multiples. Assessing SEI Investments (SEIC) Valuation After Recent Share Price Moves And Undervaluation Signals
• Neutral Sentiment: Pre-earnings analysis: Analysts’ pre-release looks at key metrics beyond revenue/EPS helped set expectations and may have moderated reactions to the print. SEI (SEIC) Reports Q4 Earnings: What Key Metrics Have to Say

About SEI Investments

SEI Investments Company is a global provider of asset management, investment processing, and investment operations solutions. The firm offers a range of services designed to help financial institutions, private banks, wealth managers and family offices streamline back-office functions and enhance front-office capabilities. SEI’s technology platforms support various stages of the investment lifecycle, including trade execution, performance reporting, risk analytics and client communications.

The company’s core offerings include outsourced fund administration, custody and trust services, managed account solutions, and wealth management technology.