Disclosed on October 29, Carl Guarino, Board Member at SEI Inv SEIC, executed a substantial insider sell as per the latest SEC filing.

What Happened: Guarino’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 7,564 shares of SEI Inv. The total transaction value is $573,124.

SEI Inv‘s shares are actively trading at $78.0, experiencing a up of 2.36% during Wednesday’s morning session.

Unveiling the Story Behind 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.

SEI Inv’s Financial Performance

Revenue Growth: SEI Inv’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 3.55%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 53.73%, suggesting potential challenges in cost control and profitability compared 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 1.2.

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

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: SEI Inv’s P/E ratio of 18.36 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 4.9, 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): SEI Inv’s EV/EBITDA ratio, lower than industry averages at 11.42, indicates attractively priced shares.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Relevance of Insider Transactions

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.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals 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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.