Trade-Ideas LLC identified

SEI Investments

(

SEIC

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SEI Investments as such a stock due to the following factors:

  • SEIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.4 million.
  • SEIC has traded 570,833 shares today.
  • SEIC is trading at 25.42 times the normal volume for the stock at this time of day.
  • SEIC is trading at a new low 4.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SEIC:

SEI Investments Co. is a publicly owned investment manager. The firm provides wealth management and investment advisory services to its clients through its subsidiaries. The stock currently has a dividend yield of 1.2%. SEIC has a PE ratio of 23. Currently there are 4 analysts that rate SEI Investments a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SEI Investments has been 719,800 shares per day over the past 30 days. SEI Investments has a market cap of $7.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.07 and a short float of 1% with 1.20 days to cover. Shares are down 14.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SEI Investments as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • SEIC's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, SEI INVESTMENTS CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $117.70 million or 20.22% when compared to the same quarter last year. In addition, SEI INVESTMENTS CO has also vastly surpassed the industry average cash flow growth rate of -50.61%.
  • SEI INVESTMENTS CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEI INVESTMENTS CO increased its bottom line by earning $1.85 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.85).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income has decreased by 5.4% when compared to the same quarter one year ago, dropping from $83.98 million to $79.43 million.

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