Updated 3/26
SEI Investments doesn’t make a lot of noise in the financial world, but maybe that’s exactly what makes it interesting. Tucked away in Oaks, Pennsylvania, SEI has quietly built a strong business that serves financial advisors, asset managers, institutional investors, and private clients. What sets it apart is its blend of financial services and technology—a combination that’s becoming more valuable as the industry continues to evolve.
For income-focused investors, SEI isn’t the first name that jumps to mind. But dig a little deeper, and there’s a compelling story here. It’s a business with staying power, consistent profitability, and a measured approach to rewarding shareholders through dividends.
Recent Events
SEI closed out 2023 on a strong note. Revenue reached $2.13 billion over the last twelve months, and net income rose sharply, thanks to a 29% year-over-year jump in quarterly earnings. Margins are healthy across the board, and the company operates with a level of financial discipline that’s increasingly rare.
One of the standout features is SEI’s balance sheet. With nearly $870 million in cash and just $32 million in debt, it’s positioned well to handle market fluctuations. Institutional ownership is high, and insiders hold a significant chunk of the stock too—an encouraging sign that leadership is aligned with shareholders.
Key Dividend Metrics
💰 Forward Dividend Yield: 1.25%
📈 5-Year Average Yield: 1.33%
🧾 Annual Dividend Payout: $0.98
🔁 Dividend Growth Trend: Steady and reliable
🔒 Payout Ratio: 21.5%
📅 Next Dividend Date: January 8, 2025
⏳ Ex-Dividend Date: December 27, 2024
🏦 Last Stock Split: 2-for-1 in June 2007
Dividend Overview
SEI’s dividend won’t jump off the page if you’re just looking at yield. At 1.25%, it’s not the highest out there. But what it lacks in size, it makes up for in stability. This is the kind of dividend that’s not only well-covered but leaves room for growth.
The company isn’t stretching to make payments. In fact, with a payout ratio just above 21%, SEI is paying out a small portion of its profits while reinvesting the rest into the business. For dividend investors who care about sustainability, that’s exactly the kind of profile you want to see.
Dividend Growth and Safety
The dividend story here is one of slow, steady progress. SEI has been quietly raising its payout over the years, and with earnings on the rise, there’s room for more. Earnings per share hit $4.41, and free cash flow remains strong at over $378 million. Those kinds of numbers support not only the current dividend but also future increases.
There’s no drama with SEI’s dividend. No threat of a cut. No unsustainable payout ratios. It’s simply a clean, well-run operation that prioritizes long-term consistency over short-term flair. That’s rare in today’s market.
Chart Analysis
Market Cycle Positioning
The SEIC chart is showing characteristics of the markdown-to-early-accumulation transition phase within the broader Wyckoff cycle. After topping out near the $87 level in early 2025, the stock went into a steady decline, breaking below the 50-day moving average in February and continuing lower until mid-March. That decline was accompanied by gradually rising volume—an indication of increasing selling pressure during the markdown phase.
However, the bounce off the low around $72 came with a noticeable volume spike, which suggests either capitulation selling or the beginning of strong institutional accumulation. This kind of action often marks the initial signs of a shift from markdown into accumulation.
Moving Averages and Momentum
Price has recently crossed above the 200-day moving average, which is a significant technical development. It’s a sign that medium- to long-term buyers may be returning to the stock. At the same time, the 50-day moving average has rolled over and is now sloping downward. This tells us the short-term trend is still catching up with recent price weakness. Ideally, for a sustained move higher, you’d want to see the price hold above the 200-day and the 50-day start to flatten and then turn higher.
The 200-day acted as support during the recent bounce. That’s an encouraging sign for investors who watch long-term trendlines. If price can consolidate above this zone, it could set the stage for a potential markup phase ahead.
Volume Activity
Volume over the last five sessions has been particularly interesting. The most recent large red candle showed a heavy-volume day near the bottom, which was immediately followed by a sharp reversal and multiple days of gains. This kind of price-volume behavior points to a possible selling climax followed by demand absorption—another signal consistent with the end of a markdown phase.
What stands out is the contrast between the low-volume drift lower through late February and early March, and the sudden, explosive buying volume that came in once SEIC touched the low-$70s. That’s a strong sign of interest returning to the name, likely from institutions or value-seeking investors.
RSI and Momentum Shift
Looking at the RSI indicator, it had been declining steadily since late January, reaching oversold levels below 30 in mid-March. Since then, the RSI has been climbing sharply, now approaching the mid-50s. This momentum turnaround aligns with the recent bounce in price, reinforcing the idea that downside pressure is easing and buyer strength is building.
Importantly, the RSI didn’t stay oversold for long. That quick rebound often reflects healthy dip-buying rather than prolonged weakness. This can mark a shift in sentiment from panic to opportunity.
Candle Structure and Price Action
Focusing on the last five daily candles, there’s a noticeable story unfolding:
- The first candle in the sequence was a long lower wick that showed buyers stepping in aggressively near the lows.
- The next few days featured tight-range green candles, signaling controlled buying and reduced volatility—a good sign of accumulation.
- The most recent candle is a small-bodied green bar with a narrow wick, closing near the high of the day, just under the 50-day moving average. That suggests buyers are maintaining control but also facing a minor test of overhead resistance.
There’s no extreme price rejection visible in the wicks, and no wide-range bearish candles, which adds to the case that the sellers may have run out of steam for now.
Analyst Ratings
📈 On January 30, 2025, SEI Investments was upgraded by Raymond James from “Market Perform” to “Outperform” with a price target of $99. The move was driven by the company’s solid financial results and encouraging growth momentum across its business lines. Analysts noted improved operating leverage and strong cash flow generation as key catalysts.
📊 Oppenheimer reaffirmed its “Outperform” rating on the same day but made a slight adjustment to its price target, trimming it from $94 to $93. The change wasn’t due to company-specific issues but rather a modest tweak in their valuation assumptions based on sector-wide revisions.
⚖️ Keefe, Bruyette & Woods took a more cautious stance back on October 8, 2024, keeping their “Market Perform” rating but lowering their price target from $74 to $73. Their position reflected some concerns about near-term volatility in the broader financial services sector, rather than any material weakness in SEI itself.
🔄 Piper Sandler maintained its “Neutral” rating in July 2024 and adjusted its target down by a dollar, landing at $71. The rationale centered around limited near-term upside, given the valuation at the time and general market headwinds.
💬 As of late March 2025, the consensus view among five analysts tracking SEIC is a “Hold” rating. The average 12-month price target is $90, with a range between $80 on the low end and $99 at the high. This reflects a fairly balanced outlook, with appreciation potential seen over the next year but tempered by valuation and macroeconomic considerations.
These recent shifts in ratings suggest that while there’s respect for SEI’s strong fundamentals, analysts are taking a measured approach. Some see more upside, particularly if margins continue to improve and cash flow stays strong, while others remain neutral amid sector-wide uncertainty.
Earning Report Summary
Strong Finish to the Year
SEI Investments wrapped up the fourth quarter of 2024 with a solid set of numbers that point to real momentum in the business. Revenue came in at $557.2 million, up 15% from the same time last year. Operating income jumped 43% to $145.5 million, and earnings per share hit $1.19, which is a pretty sharp 31% increase year-over-year. That kind of growth, especially in a mixed macro environment, says a lot about how well the company is executing.
Margins also moved in the right direction. Operating margin expanded from 21% a year ago to 26%—that’s a meaningful improvement and shows more efficient use of resources as SEI grows.
Business Segments Delivering
One of the more encouraging takeaways from this report is that the growth wasn’t limited to a single part of the business. Across the board, SEI’s segments delivered. Private Banks revenue climbed 14%, and profits in that area surged by 56%. The Investment Advisors segment was particularly strong, with a 27% jump in revenue and a 47% rise in profits, helped by contributions from their integrated cash program.
Investment Managers weren’t far behind, bringing in 13% more revenue and boosting profits by 26%. Even the more stable Institutional Investors segment posted modest growth, with revenue up 1% and profit increasing by 6%.
While assets under management and administration ticked higher on average during the quarter, the ending AUM actually dipped slightly—about 3% from the third quarter. That drop had more to do with plan terminations and market movements than anything operational, and management didn’t sound too concerned.
On the capital return side, SEI continued buying back stock, repurchasing 3.1 million shares for just under $260 million. The average price paid was $83.43, which reflects confidence in the company’s valuation and a commitment to delivering value back to shareholders.
Steady Execution and Clear Strategy
The tone from leadership was confident. CEO Ryan Hicke credited the company’s strong quarter to steady execution and highlighted a big uptick in new client wins. Net sales events jumped 58% compared to last year, a sign that SEI’s offerings are resonating more broadly.
All in all, the fourth quarter showed that SEI is not only growing but doing it in a way that’s efficient and measured—traits that tend to matter more the longer you hold the stock.
Financial Health and Stability
SEI’s financial profile is one of its biggest strengths. Profit margins are high—over 27%—and returns on equity and assets suggest efficient use of capital. The return on equity comes in at 26.5%, while return on assets stands at 13.2%.
The company doesn’t rely on debt to fuel growth, and with a current ratio above 4, it has more than enough liquidity to meet short-term obligations. Cash per share sits at $6.85, and total debt is barely a blip on the radar.
For investors who value financial discipline, this is the kind of balance sheet you want supporting your dividends.
Valuation and Stock Performance
At around $78 per share, SEI is trading near its 50-day moving average, with longer-term support from the 200-day. Over the past year, the stock has gained nearly 9%, right in line with the broader market, but with a lower beta. It’s not the kind of name that runs hot or cold—it just moves with measured steps.
From a valuation standpoint, the stock looks fair. The trailing P/E is under 18, and the forward P/E is around 16. The PEG ratio is also quite reasonable at 1.23. These numbers point to a company that’s growing, profitable, and not trading at extreme multiples.
For dividend investors, that kind of valuation balance—growth without frothy pricing—is exactly what helps avoid overpaying for yield.
Risks and Considerations
No investment is without its trade-offs. SEI’s modest dividend yield may turn off some investors who prioritize immediate income. It’s a stock that pays you to wait, but the rewards aren’t front-loaded.
There’s also exposure to market cycles. As an investment services company, SEI’s revenues are tied to the performance of capital markets. A prolonged downturn could affect asset flows and fee income.
And while its tech-forward model is a strength, it also comes with ongoing investment demands. Staying competitive in this space means continued spending on platforms and innovation.
Lastly, SEI doesn’t draw a lot of attention in financial media or analyst circles. That can lead to under-the-radar valuation swings—good or bad—based more on sentiment than fundamentals.
Final Thoughts
SEI Investments isn’t the kind of stock that shows up on flashy dividend screens. It doesn’t offer a high yield or a dramatic story. What it does offer is consistency. Strength. A long-term mindset.
It’s a company that manages its balance sheet with care, keeps its payout ratio low, and grows its dividend slowly but steadily. That kind of approach doesn’t just preserve capital—it builds trust.
For income investors who value stability over spectacle, SEI is one to keep an eye on. It may not be the loudest name in your portfolio, but it might end up being one of the most dependable.