New Lifetime High Today: SEI Investments Company (SEIC)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified SEI Investments Company ( SEIC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified SEI Investments Company 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 $40.5 million.
  • SEIC has traded 18,999 shares today.
  • SEIC is trading at a new lifetime high.

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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 1.1%. SEIC has a PE ratio of 23.8. Currently there are 2 analysts that rate SEI Investments Company a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SEI Investments Company has been 578,800 shares per day over the past 30 days. SEI Investments has a market cap of $7.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.31 and a short float of 0.9% with 1.40 days to cover. Shares are up 16% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SEI Investments Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and solid stock price performance. We feel these 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 4.4%. Since the same quarter one year prior, revenues slightly increased by 7.6%. 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. 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.
  • SEI INVESTMENTS CO has improved earnings per share by 16.3% in the most recent quarter compared to the same quarter a year ago. 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 $1.85 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.85).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 13.1% when compared to the same quarter one year prior, going from $74.82 million to $84.61 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.01% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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