Company Reports

SEI Investments reported second-quarter revenue growth of 15% and $1.66 adjusted earnings per share, up from $1.44 in the first quarter. Net new recurring sales events, a metric akin to net bookings, were $33 million in the quarter, down sequentially but up from $24 million in the year-ago quarter.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 15%-20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins, though results since 2023 indicate a turnaround.

SEI Investments reported a solid start to 2026 with revenues up 13% and diluted earnings per share up 20%. Net recurring sales events of $57 million were a quarterly record, with the investment managers segment being particularly strong. We expect a positive market response to the strong sales.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 15%-20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins, though results since 2023 indicate a turnaround.

SEI Investments reported 9% revenue growth and net recurring sales events of $18.9 million, down from $28.2 million last year, driven by weakness in asset management businesses. Segment operating margins also saw strong trends. Shares were roughly flat in after-hours trading.

SEI reported 8% revenue growth (which we expect was closer to 9% when excluding the Achway divestiture) and 11% operating income growth as markets boosted asset-based fee growth. Net recurring sales events of $21 million declined from $24 million sequentially and $35 million in the year-ago quarter.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 15%-20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins though results since 2023 indicate a turnaround.

SEI Investments reported 8% revenue growth to $560 million in the second quarter with EPS of $1.78 or $1.20 excluding notable items, versus $1.05 in the year-ago quarter. Net recurring sales were $24 million, up from $16 million in the year-ago quarter.

On July 18, SEI Investments announced a 57.5% investment in Stratos Wealth for $527 million in cash.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins though we are seeing some signs of a turnaround.

SEI reported a strong first quarter with revenue up 8% year over year and operating income up 25%. Net recurring sales of $37 million were up from $28 million in the fourth quarter and $16 million in the year-ago quarter.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins.

Narrow moat-rated SEI Investments announced that it would divest Archway, its family office business, for $120 million to Aquiline. Overall, this development is not material enough to affect our fair value estimate of $84 per share, which we will maintain.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm's investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks have been a thorn in SEI's side, with disappointing revenue growth and operating margins.

SEI Investments reported a fairly good fourth quarter, in our view. Revenue grew 15% driven by average assets under management growing 18%. Importantly, net new recurring sales of $28 million were strong and suggest that the strength in the third quarter of 2024 may not be a blip. Even accounting for one-time items in the year-ago quarter, firmwide margins expanded amid market appreciation and expense control. The institutional investors segment continues to face headwinds. As we incorporate strong sales activity and market appreciation, we expect to increase our fair value estimate of $81 per share by a single-digit percentage and will maintain our narrow moat rating.

Direct indexing in some form has existed for decades, but advances in technology have recently broadened its availability. With its arguable superiority to existing passive index funds and exchange-traded funds, investment industry leaders are positioning for the opportunities and threats it unleashes. While there have already been hundreds of billions of dollars dedicated to direct indexing offerings, numerous firms such as BlackRock and Morgan Stanley have acquired direct indexing capabilities in anticipation of further rapid growth.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm’s investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks has been a thorn in SEI’s side, with disappointing revenue growth and operating margins.

Narrow-moat-rated SEI Investments reported a broad-based strong quarter, in our view, which is in contrast to the mixed results we’ve seen over the last several quarters. Higher markets are boosting asset-based fees, sales activity saw improvements across multiple segments, a decision to increase cash deposit allocations in the investment advisors segment will boost revenue, and performance fees at LSV were strong. Revenue grew 13%, and expenses, which grew 7%, were well-controlled, resulting in a 33% increase in operating income. As we incorporate these results and strong market appreciation since our last update, we expect to increase our $76 per share fair value estimate by a range of 5%-15%.

SEI Investments consists of four main segments: private banks, investment advisors, institutional investors, and investment managers. A minority interest in value equity manager LSV Asset Management generates about 20% of its pretax income. The firm’s investment advisors, institutional investors, and investment managers segments have been strong drivers of earnings and have strong operating margins, while private banks has been a thorn in SEI’s side, with disappointing revenue growth and operating margins.

SEI Investments reported a mixed second quarter. SEI continues to see progress in expanding its private banks segment operating margin, which has been an issue for many years. The trends of strong results in the investment managers segment and softness in the institutional investors segment continues. We will maintain our narrow moat rating and $70 fair value estimate on the firm’s shares.