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SEI updated its technology platform with new tools that help financial advisors manage the tax impact of investment decisions. These features allow advisors to better handle paper gains on investments they haven't sold yet and transition portfolios more smoothly for their clients. This is a small but useful update to SEI's core software. By making its platform more helpful for complex tasks like tax planning, the company makes its services harder for banks and wealth managers to replace.
Source: PRNewsWire
William Blair upgraded the company to its highest rating on Tuesday. This move takes the average price target across all major analysts to about $123, which is roughly 16 percent higher than where the stock trades today.
This upgrade reflects a growing view that the company is successfully moving past a period of heavy spending on its technology. As it begins to sign more wealth managers and banks to its updated platform, it should be able to grow its profits faster without needing to spend as much on new systems.
SEI released research showing that 71 percent of wealthy investors have assets that their primary financial advisor does not currently manage. The study points to a communication gap and suggests that advisors who focus on reducing taxes and offering more personalized advice could win over these additional accounts. While this is a marketing report rather than a financial result, it supports the company's strategy of selling more specialized software tools to its bank and wealth management clients. SEI makes money by providing the technology these advisors use, so helping its customers grow their own businesses is a key way for SEI to increase its own long-term revenue.
Source: PRNewsWire
SEI is adding an AI assistant called Zocks to its platform for financial advisors. The tool is designed to handle routine office work like taking notes and updating client records automatically.
This matters because SEI makes its money by being the essential software that banks and wealth managers use to run their businesses. By adding AI features that save advisors time, SEI makes its platform harder to replace and more valuable to the firms that pay for it.
Source: PRNewsWire
SEI launched the Ang Research Enhanced U.S. Large Cap ETF, which uses a research-based approach to pick stocks rather than just tracking a standard index. This is part of a larger plan to grow its lineup of exchange-traded funds, or ETFs, which are investment funds that trade on an exchange like a stock. Expanding its own fund products allows SEI to capture more fees from the assets it manages.
Source: PRNewsWire
Management consistently sets a bar they can clear, beating expectations in seven of the last eight quarters as the business outpaces even optimistic forecasts.
| Expectation | |
|---|---|
| EPS | $1.58 |
| Revenue | $657M |
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