SEI Investments Co. (NASDAQ:SEIC) is currently a good buy for traders looking to hold short term for a profit. With a beta of 1.03 SEIC has expected returns just above the expected market return and is a relatively conservative investment. The company has solid financials and is a well-established entity resulting is less volatility than other investments. However some recent changes in ratings from analyst along with other trading activity suggest that SEIC will continue to increase in value in the short term brining opportunity for short term capital gains.
SEI Investments is a financially sound company with performance that validates a rising price. A 25.38% profit margin along with a 15.61% return on assets are indicators of well operating company with good financial health. Its high profitability also reflects a business model that allows for high gains and therefor more potential increased earnings. In addition to strong financial health many analyst reports are going in favor of SEI. Oppenheimer has raised their price objective from $48.00 to $57.00 showing higher expectations of the stock which closed at $52.02 on 7/28/2015. Many other firms are also giving SEIC a rating of outperform suggesting the stock is on the rise. Two equities research analysts have rated the stock with a hold rating and six with a buy rating.
One financial ratio that could be improved is the P/E ratios of 26.81. While this ratio is considered acceptable to most investors it is on the high side and will increase as the stock approaches the price objective. Also trading activity by insiders suggest that SEIC is at its peak price. EVP Wayne Withrow sold 10,000 shares 7/24/2015 at $50.52 per share and Insider Dennis Mcgonigle sold 25,000 shares for an average price of $49.36 on 6/16/2015. While the analyst rating has a great effect on the intrinsic value interpreted by most traders these transactions suggest that perhaps their price objective is a little high. However the stock will likely continue to rise closer to that $57.00 mark, and traders who purchase the stock now and sell with expectations somewhere below that objective price will likely realize a decent capital gain.