SEI Investments Held at Outperform - Analyst Blog

On Jul 3, 2013, we reiterated our long-term recommendation on SEI Investments Co. (SEIC) at Outperform based on its encouraging capital deployment activities and robust asset inflows. Additionally, significant improvement in its organic revenue generation capacity over the past several quarters is expected to act as a positive catalyst.

Why Outperform?

SEI Investments is a sound asset for yield-seeking investors. Over the past several years, the company has been increasing its dividend every year. In May 2013, the company hiked its semi-annual dividend by 25% to 20 cents per share. It also extended the share repurchase program by $100 million, which increased the total shares to be repurchased to $139 million.

Apart from broad diversification and organic growth prospects, SEI Investments has a strong presence across the globe mainly in North America and Europe. Moreover, the company's diversified products and revenue mix is expected to enable it to adapt easily to the changing needs of the clients and continue to boost its top line.

SEI Investments maintains a robust asset inflow. In the past several years, the company recorded a rising trend in its assets under management and administration. Moreover, due to the current stabilization of the equity markets, asset inflows are expected to significantly contribute to its earnings growth.

Moreover, SEI Investments' first-quarter 2013 earnings surpassed the Zacks Consensus Estimate. Results benefited from top-line growth, partially offset by higher expenses.

For SEI Investments, the Zacks Consensus Estimate for 2013 remained unchanged at $1.44 per share over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 0.6% to $1.75 per share over the same time frame. This company currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Some other banks that are worth considering include Noah Holdings Limited (NOAH) with a Zacks Rank #1 (Strong Buy) and Ameriprise Financial, Inc. (! AMP) and Artisan Partners Asset Management Inc. (APAM) with a Zacks Rank #2 (Buy).