On September 19, 2023, Michael Peterson, the Executive Vice President and General Counsel of SEI Investments Co (SEIC, Financial), sold 25,000 shares of the company. This move is part of a trend for Peterson, who over the past year has sold a total of 35,000 shares and purchased none.
SEI Investments Co is a leading global provider of investment processing, investment management, and investment operations solutions. The company helps professional wealth managers, institutional investors, and private investors create and manage wealth through a wide range of services and innovative strategies.
The insider’s recent sell-off is part of a broader trend within the company. Over the past year, there have been 21 insider sells and no insider buys. This trend is illustrated in the following image:
The relationship between insider trading and stock price is complex. While insider selling can sometimes indicate a lack of confidence in the company’s future prospects, it can also be a personal decision based on the insider’s financial needs or investment strategies. Therefore, it’s crucial to consider the context of the insider’s actions and the company’s overall performance.
On the day of the insider’s recent sell, shares of SEI Investments Co were trading at $61.29, giving the company a market cap of $7.98 billion. The price-earnings ratio was 20.36, higher than the industry median of 13.07 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, SEI Investments Co is fairly valued. The stock’s price-to-GF-Value ratio is 0.95, as shown in the following image:
In conclusion, while the insider’s recent sell-off may raise some eyebrows, it’s important to consider the broader context. The company’s stock is fairly valued according to the GuruFocus Value, and the insider’s actions may be more reflective of personal investment strategies than a lack of confidence in the company’s future.
