How Will SEI Investments (SEIC) Stock Respond To This Analyst Upgrade?

NEW YORK (TheStreet) -- SEI Investments  (SEIC) was upgraded to "outperform" from "market perform" at Keefe, Bruyette & Woods  (KBW) with a $41 price target, up from $37.

Shares of SEI Investments surged 6.14% to close at $34.39 yesterday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Separately, TheStreet Ratings team rates SEI INVESTMENTS CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SEI INVESTMENTS CO (SEIC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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. In comparison to the other companies in the Capital Markets industry and the overall market, SEI INVESTMENTS CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has increased to $43.94 million or 11.31% 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 -105.01%.
  • SEI INVESTMENTS CO's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SEI INVESTMENTS CO increased its bottom line by earning $1.63 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($1.73 versus $1.63).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 4.0% when compared to the same quarter one year prior, going from $71.92 million to $74.82 million.
  • You can view the full analysis from the report here: SEIC Ratings Report
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Watch Out: Barbarians At The Gate For SEI Investments (SEIC)

Insider Trading Alert - SEIC, USCR And EXTR Traded By Insiders

SEI Investments (SEIC) Weak On High Volume Today

Water-Logged And Getting Wetter: SEI Investments (SEIC)

SEI Investments (SEIC) Is Water-Logged And Getting Wetter Today