SEI Investments (SEIC) Could Be 10% Below Fair Value As Insider Selling Draws Focus

Michael Lane recently sold about US$246,000 of SEI Investments (SEIC) stock, putting insider activity in the spotlight as investors reassess how the business is positioned after recent product updates.

SEI Investments now trades at US$104.78, with the share price down 5.6% over the past month but up 20.1% over 90 days. The 1-year and 5-year total shareholder returns of 24.6% and 88.8% point to momentum that has built over a longer stretch as the market digests both new tax-management features and insider selling.

Capture how SEI Investments fits into the broader wealth and asset-management story by scanning a curated set of peers in our list of solid balance sheet and fundamentals (24 results).

After that sharp 90 day climb and a recent 5.6% pullback, plus insider selling in the background, SEI Investments now sits at an interesting crossroads. Is this a reasonable entry point, or a moment to stay patient for cheaper terms?

Most Popular Narrative: 9.6% Undervalued

On the most followed view, SEI Investments screens below an assessed fair value of $115.86, while the shares last closed at $104.78. This puts the focus on whether its outsourcing and higher margin services can justify that gap over time.

Professional services and Data Cloud offerings are being scaled across the company, with leadership roles created to expand these 30 to 40% margin services beyond Private Banking into other segments. This can lift blended operating margins and earnings over time as attach rates rise.

See why 5 investors see SEI Investments as 10% undervalued.

Result: Fair Value of $115.86 (UNDERVALUED)

Still, the SEI Investments story can change quickly if lower fee ETFs and separately managed accounts squeeze pricing, or if persistent insider selling weighs on confidence.

Find out about the key risks to this SEI Investments narrative.

Next Steps

With mixed signals on valuation, insider moves, and new services, you may want to check the numbers yourself and weigh both sides. To see both the potential benefits and the concerns in one place, take a look at the 3 key rewards and 1 important warning sign.

Looking for more SEI Investments style ideas?

If you stop with SEI Investments, you miss a wider field of opportunities. Use the screener to quickly scan fresh possibilities that fit your approach.

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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.

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