SEI Investments (SEIC) Shares Soar 1.68% on Buyback Plan

SEI Investments (SEIC) shares surged 1.68% today, reaching their highest level since February 2025 with an intraday gain of 2.02%.

The strategy of buying SEIC shares after they reach a recent high and holding for 1 week shows a tendency for consolidation rather than a strong gain. Backtesting reveals that, on average, the stock price remains stable or experiences a slight decline in the week following the new high. This indicates that while there is a brief stabilization period, the stock is more likely to decline than to continue rising immediately after reaching a high.

Recent Performance: SEIC shares surged 1.96% intraday, marking the highest level since February 2025, with a two-day consecutive rise of 1.87%. This brief spike can be attributed to the company's strong Q1 2025 earnings, which exceeded market expectations driven by increased revenues and assets under management (AUM).

Earnings and Financial Health: SEI Investments reported an 18% increase in earnings per share (EPS) and achieved record-breaking net sales. The company's robust balance sheet, which is free of long-term debt, further enhances its financial stability and contributes positively to the stock outlook. These factors collectively indicate a strong financial position for SEI Investments, which is likely to attract more investors and drive the stock price higher.

Market Dynamics: The market is in a transition phase where investors are moving from chasing momentum to seeking quality, and value stocks are gaining attractiveness. SEIC's strong fundamentals and defensive nature, as highlighted by its inclusion in Benjamin Graham's stock list for defensive investors, make it a resilient investment in uncertain economic times.

Strategic Partnerships: The partnership between SEI and Summit Wealth Group represents a significant win for SEI in the competitive RIA custody landscape. This strategic move not only brings in new business but also enhances SEI's position in the wealth management ecosystem, offering integrated services that include custody, technology, and investment management.

In conclusion, while the strategy of buying SEIC shares after they reach a recent high and holding for 1 week shows a tendency for consolidation rather than a strong gain, the overall outlook for SEIC remains positive. The company's strong financial performance, strategic partnerships, and attractive market positioning are likely to support its stock price in the medium to long term.

SEI Investments' stock price has been influenced by several key factors recently. On March 18, the company's Board of Directors authorized a stock buyback plan, allowing SEI Investments to repurchase its shares. This move can increase demand for the stock and signal to investors that the company believes its shares are undervalued, potentially driving up the stock price.

Additionally, on May 14, 2025, there was an adjustment in the target price for SEI Investments. This change can impact investor sentiment and influence trading decisions, further affecting the stock's performance. These factors collectively contribute to the recent upward trend in SEI Investments' stock price.