Have SEI Investments Insiders Been Selling Stock?

We wouldn't blame SEI Investments Company (NASDAQ:SEIC) shareholders if they were a little worried about the fact that Alfred West, the Chairman Emeritus recently netted about US$5.0m selling shares at an average price of US$87.26. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.4%.

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SEI Investments Insider Transactions Over The Last Year

In fact, the recent sale by Chairman Emeritus Alfred West was not their only sale of SEI Investments shares this year. They previously made an even bigger sale of -US$5.0m worth of shares at a price of US$80.47 per share. That means that even when the share price was below the current price of US$95.94, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.4% of Alfred West's holding.

SEI Investments insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for SEI Investments

I will like SEI Investments better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does SEI Investments Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. SEI Investments insiders own about US$1.9b worth of shares (which is 17% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The SEI Investments Insider Transactions Indicate?

Insiders haven't bought SEI Investments stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since SEI Investments is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - SEI Investments has 1 warning sign we think you should be aware of.

Of course SEI Investments may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.