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In a notable insider transaction, WEST ALFRED P JR, the Executive Chairman and 10% Owner of SEI Investments Co (NASDAQ:SEIC), sold 188,583 shares of the company on November 21, 2023. This sale is part of a series of transactions over the past year, where the insider has sold a total of 871,733 shares and made no purchases. Such insider activity often garners the attention of investors seeking to understand the implications behind these moves.
Who is WEST ALFRED P JR?
WEST ALFRED P JR is a significant figure at SEI Investments Co, holding the position of Executive Chairman. His role extends beyond typical executive duties, as he is also a 10% owner of the company, indicating a substantial personal investment and interest in the firm's success. His actions, particularly in the stock market, are closely watched as they may reflect his confidence in the company's future prospects.
SEI Investments Co's Business Description
SEI Investments Co is a global provider of investment processing, management, and operations solutions. The company caters to corporations, financial institutions, financial advisors, and ultra-high-net-worth families. SEI Investments Co's innovative solutions help clients create and manage wealth by providing investment and fund processing, investment management, and investment operations solutions that help corporations, financial institutions, financial advisors, and affluent families create and manage wealth.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Insider transactions can provide valuable insights into a company's health and the sentiment of its top executives. In the case of SEI Investments Co, the absence of insider purchases over the past year, coupled with 20 insider sells, may raise questions about the insiders' outlook on the company's future performance. However, it is essential to consider these transactions in the broader context of the company's stock price and valuation.
On the day of the insider's recent sale, SEI Investments Co's shares were trading at $57.99, giving the company a market cap of $7.588 billion. This price reflects a price-earnings ratio of 17.06, which is higher than the industry median of 13.09 but lower than the company's historical median price-earnings ratio. This suggests that, while the stock may be trading at a premium compared to the industry, it is still below its historical valuation levels.
Moreover, with a price of $57.99 and a GuruFocus Value of $62.44, SEI Investments Co has a price-to-GF-Value ratio of 0.93, indicating that the stock is Fairly Valued based on its GF Value. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which considers historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.