Sei (SEI) on the Rise: Harmonic Pattern Signals Further Upside Potential

Sei (SEI) is experiencing a strong recovery, with a 20% gain over the past week. A harmonic pattern, Bearish Cypher, is forming on the daily chart, hinting at further upside. The pattern's completion could lead to a 22% potential upside to $0.2576. SEI must break above $0.2303 resistance to reach the final target, with technical indicators supporting the bullish setup.

SEI Investments (SEIC) has reported robust first-quarter (Q1) earnings, driving Oppenheimer to raise its price target for the stock. The investment management firm reported an earnings per share (EPS) of $1.17, surpassing both Oppenheimer's projection of $1.14 and the consensus estimate of $1.12 [1].

The strong performance was evident across all of SEI's segments, with operating margins also exceeding expectations. Despite macroeconomic uncertainties, SEI's management highlighted a stable sales cycle and pipeline. The company reported a 3% increase in assets under administration (AUA) and a 2% increase in assets under management (AUM), despite the S&P 500 experiencing a 4.6% decline over the same period [1].

Oppenheimer has increased its price target for SEIC from $80 to $87, maintaining an Outperform rating on the stock. The average one-year price target from 5 analysts is $83.00, with a high estimate of $94.00 and a low estimate of $79.00. The consensus recommendation from 6 brokerage firms is currently 2.3, indicating an Outperform status [1].

SEI Investments also reported a record-breaking $47 million in net sales events in Q1, with $37 million being recurring revenue. The company's operating profit margin increased to 28.5% for Q1, the highest level in the last three years. Additionally, SEI announced a $500 million increase in its share repurchase authorization, reflecting confidence in its stock value [1].

Despite the positive developments, SEI's EPS declined modestly on a sequential basis due to the seasonality of the tax rate. The recent wave of market uncertainty and evolving macroeconomic dynamics could influence pipeline activity. Investment Advisors and Institutional Investors saw modest revenue declines due to lower asset balances. The sale of the Family Office Services business indicates a strategic shift, which may impact future growth in that segment. The company anticipates gradual increases in expenses throughout the year due to hiring and new technology investments, which could pressure margins [1].

References:
[1] https://www.gurufocus.com/news/2801017/sei-investments-seic-price-target-raised-by-oppenheimer-amid-strong-q1-performance-seic-stock-news