SEI Investments Company (SEIC - Free Report) has announced impressive capital deployment plans. The company’s board of directors authorized an additional $200-million share buyback plan. This, thus, increased the repurchase authorization to around $223 million. In 2018, the company has already repurchased shares worth $147.6 million.
Further, SEI Investments has announced its semi-annual dividend. The dividend of 30 cents will be paid on Jun 22, to the shareholders of record as of Jun 14.
Considering last day’s closing price of $65.13 per share, the dividend yield is currently 1.84%. Notably, the company has been increasing dividend annually since 2009. In December 2017, the company hiked its dividend by 7.1%.
Given the solid liquidity position, along with lower debt/equity and dividend payout ratios than its peers, SEI Investments is expected to sustain its capital-deployment activities, thereby continuing to enhance shareholder value.
Driven by impressive capital-deployment activities and continued growth in revenues, the stock has rallied 28.5% in the past year, outperforming 14.8% growth for the industry.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at its fundamentals and growth opportunities.
SEI Investments has been witnessing consistent improvement in revenues for the past few years. Over the last six years (2012-2017), the company’s revenues witnessed a CAGR of 9.0%, with the momentum persisting in the first three months of 2018. Further, the company’s diversified product and revenue mix, as well as its strong global presence and the acquisition of Archway Technology Partners, reflect improving prospects in the upcoming quarters.
Also, asset inflows at SEI Investments remain strong. The company registered a rising trend in its total assets under management over the last four years (2014-2017) at a CAGR of 10.1%. The momentum continued in the first quarter of 2018. Though the overall equity market remains volatile, this investment manager is well positioned to benefit from the same.
Nevertheless, continuously rising expenses remain a major cause of concern for SEI Investments. Expenses witnessed a CAGR of 7.7% over the last six years (2012–2017). The rise was mainly due to an increase in compensation costs. The trend continued in the first quarter 2018 as well. Management expects expenses to remain elevated over the next couple of years due to additional investment spending on services.
Stocks to Consider
A few better-ranked stocks in the same space are Lazard Ltd (LAZ - Free Report) , Schroders plc (SHNWF - Free Report) and Ashmore Group PLC’s (AJMPF - Free Report) . All the stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lazard’s Zacks Consensus Estimate for 2018 earnings has moved up 9% over the last 60 days. In a year’s time, the company’s shares have gained 21.4%.
Schroders’ Zacks Consensus Estimate for fiscal 2018 earnings has moved 1% north in the past 60 days. Also, shares of the company have increased 7.7% in a year's time.
Ashmore Group’s current fiscal's earnings estimates have remained unchanged over the last 60 days. In a year’s time, the stock has rallied 2.6%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>