Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on April 1, by Alfred P. West Jr.,, Executive Chairman at SEI Inv (NASDAQ:SEIC), based on the recent SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Jr., sold 19,363 shares of SEI Inv. The total transaction value is $1,396,846.
Tracking the Monday's morning session, SEI Inv shares are trading at $71.9, showing a down of 0.0%.
Get to Know SEI Inv Better 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.
Breaking Down SEI Inv's Financial Performance Revenue Growth: SEI Inv's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 6.19%. 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.
Evaluating Earnings Performance:
- Gross Margin: With a low gross margin of 50.48%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): SEI Inv's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.92.
Insights into Valuation Metrics:
- Price to Earnings (P/E) Ratio: The P/E ratio of 20.78 is lower than the industry average, implying a discounted valuation for SEI Inv's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 5.01 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 12.86, SEI Inv demonstrates exemplary market valuation, surpassing industry averages.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Uncovering the Importance of Insider Activity While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Deep Dive into Insider 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.