SEI Investments Company (SEIC) Bundle
Who Invests in SEI Investments Company (SEIC) and Why?
Who Invests in SEI Investments Company (SEIC) and Why?
Understanding the investor profile for SEI Investments Company (SEIC) involves breaking down the types of investors, their motivations, and the strategies they employ.
Key Investor Types
Investors in SEI Investments Company can be categorized into three main types:
- Retail Investors: Individual investors who purchase shares for personal accounts. They often seek growth and dividends.
- Institutional Investors: Organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money on behalf of their clients. As of September 30, 2024, institutional investors held approximately 78.6% of the total shares outstanding.
- Hedge Funds: These are pooled investment funds that employ various strategies to earn active returns for their investors. Hedge funds have increased their stake in SEIC, with a reported increase of 12% in holdings over the last year.
Investment Motivations
Different investor types are attracted to SEI Investments for various reasons:
- Growth Prospects: Institutional investors are drawn to SEIC due to its strong track record of revenue growth. For instance, revenues increased by 13% in Q3 2024 compared to Q3 2023, reaching $537.4 million.
- Dividends: Retail investors are particularly attracted to the company’s consistent dividend payments, with dividends declared at $0.46 per share in 2024.
- Market Position: Hedge funds recognize SEI's solid position within the financial services industry and its ability to adapt to market changes, leading to increased assets under management, which totaled $1.6 trillion as of September 30, 2024.
Investment Strategies
Investors in SEI Investments employ various strategies based on their objectives:
- Long-term Holding: Many institutional investors adopt a long-term holding strategy, aiming to benefit from the company’s growth over time.
- Short-term Trading: Retail investors may engage in short-term trading, capitalizing on price fluctuations in the stock.
- Value Investing: Hedge funds often look for undervalued stocks within the financial services space, and SEIC’s relatively low price-to-earnings ratio of 18.5 makes it attractive for this strategy.
Investor Profile Data Table
| Investor Type | Percentage of Ownership | Primary Motivations | Typical Strategies |
|---|---|---|---|
| Retail Investors | 21.4% | Growth, Dividends | Short-term Trading |
| Institutional Investors | 78.6% | Growth Prospects, Market Position | Long-term Holding |
| Hedge Funds | Growing stake, approx. 12% increase in last year | Value, Market Position | Value Investing |
As of September 30, 2024, the investment landscape for SEI Investments Company reflects a diverse group of investors, each with distinct motivations and strategies that align with the company's performance and offerings.
Institutional Ownership and Major Shareholders of SEI Investments Company (SEIC)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following are the top institutional investors in SEI Investments Company:
| Investor Name | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 20,156,800 | 15.7% |
| BlackRock, Inc. | 15,000,000 | 11.6% |
| State Street Corporation | 10,500,000 | 8.1% |
| Wellington Management Group LLP | 8,300,000 | 6.4% |
| Fidelity Investments | 7,500,000 | 5.8% |
Recent changes in ownership indicate that institutional investors have adjusted their stakes. Notably, The Vanguard Group increased its holdings by 1.5 million shares in the last quarter. Conversely, BlackRock reduced its stake by 500,000 shares.
Institutional investors play a significant role in shaping the company's stock price and strategic direction. Their collective investment decisions can influence market perception and investor confidence. For example, the influx of capital from The Vanguard Group has historically correlated with upward price trends, reflecting investor confidence in the company's future performance.
As of the end of Q3 2024, the total assets under management for SEI Investments Company reached $1.6 trillion, with institutional investors contributing significantly to this figure. The impact of these investors is evident in the company's strategic initiatives, particularly in enhancing technology and expanding service offerings to meet evolving market demands.
Key Investors and Their Influence on SEI Investments Company (SEIC)
Key Investors and Their Impact on SEI Investments Company
As of 2024, SEI Investments Company has attracted a diverse range of key investors that play a significant role in shaping its business strategy and stock performance. Notable investors include both institutional investors and individual stakeholders, each influencing company decisions and stock movements through their investment strategies and actions.
Notable Investors
- BlackRock, Inc. – One of the largest asset management firms globally, holding approximately 10.5% of total shares in SEI Investments as of late 2023.
- The Vanguard Group – Another major institutional investor, owning around 9.2% of total shares.
- State Street Corporation – Holds approximately 6.8% of total shares, contributing to significant voting power at shareholder meetings.
- Wellington Management Company – A prominent investment management firm with a stake of about 4.3% of total shares.
Investor Influence
These investors impact company decisions primarily through their voting rights and engagement with management. For instance, BlackRock and Vanguard often advocate for sustainability and governance reforms, pushing the company to improve its ESG (Environmental, Social, and Governance) practices. This influence is crucial as it aligns with broader market trends that favor sustainable investing.
Moreover, significant ownership by these institutional investors can lead to increased stock volatility. When these firms decide to buy or sell large stakes, it can cause noticeable movements in the stock price due to the high volume of shares traded.
Recent Moves
In 2024, notable movements by these investors have included:
- BlackRock increased its stake by approximately 1.2 million shares in Q1 2024, reflecting confidence in the company’s growth prospects.
- The Vanguard Group reported a slight reduction in its holdings by 0.5 million shares, indicating a strategic portfolio rebalancing.
- State Street Corporation has actively engaged with SEI’s management on governance practices, leading to a commitment to transparency in reporting.
- Wellington Management has increased its investment in SEI, adding approximately 500,000 shares in the last quarter of 2023, signaling a bullish outlook on the company’s future.
Financial Overview
The financial performance of SEI Investments has been robust, with a reported net income of $425.4 million for the first nine months of 2024, an increase of 25% compared to the same period in 2023. The diluted earnings per share rose to $3.23, reflecting a 27% year-over-year growth.
| Investor | Stake (%) | Recent Activity |
|---|---|---|
| BlackRock, Inc. | 10.5% | Increased stake by 1.2 million shares in Q1 2024 |
| The Vanguard Group | 9.2% | Reduced holdings by 0.5 million shares |
| State Street Corporation | 6.8% | Engaged management on governance practices |
| Wellington Management Company | 4.3% | Increased investment by 500,000 shares |
The average assets under administration increased $132.4 billion, or 15%, to $998.4 billion during the first nine months of 2024, compared to $866.0 billion in the same period of 2023. This growth in assets significantly contributes to the company’s revenue from asset management and administration fees.
Furthermore, SEI's total revenues for the first nine months of 2024 reached $1.57 billion, a 9% increase from $1.43 billion in the previous year. The operating income also saw a notable rise to $406.2 million, reflecting a 26% increase year-over-year.
Market Impact and Investor Sentiment of SEI Investments Company (SEIC)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment among major shareholders towards SEI Investments Company appears to be positive. This is reflected in the increased net income of $425.4 million for the first nine months of 2024, compared to $341.5 million during the same period in 2023, indicating a 25% increase year-over-year.
Recent Market Reactions: The stock market has reacted favorably to significant changes in ownership and large investor moves. Notably, the company repurchased approximately 3.7 million shares for $253 million in the first nine months of 2024. This stock repurchase program signals confidence from management and usually leads to increased stock prices, as it reduces the number of shares outstanding, thus increasing earnings per share (EPS).
Analyst Perspectives: Analysts are optimistic regarding the impact of key investors on the company's future. The average assets under administration increased by $132.4 billion, or 15%, to $998.4 billion in the first nine months of 2024. This growth is a result of cross-selling strategies and a strong performance in the Investment Managers segment. Analysts predict that continued market appreciation and positive cash flows into managed account programs will enhance the company's financial stability and growth potential.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $154.9 million | $115.7 million | 34% |
| Diluted EPS | $1.19 | $0.87 | 37% |
| Total Revenues | $537.4 million | $476.8 million | 13% |
| Operating Margin | 27% | 23% | 4% |
Additionally, the effective tax rate has remained stable at 23.5% for Q3 2024, compared to 22.5% for Q3 2023. This stability in tax rates further supports the positive investor sentiment, as it reflects consistent financial management.
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Article updated on 8 Nov 2024
Resources:
- SEI Investments Company (SEIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SEI Investments Company (SEIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SEI Investments Company (SEIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.