On September 13, 2023, Executive Chairman and 10% Owner WEST ALFRED P JR sold 132,440 shares of SEI Investments Co (SEIC, Financial). This move comes as part of a series of transactions by the insider over the past year, during which he sold a total of 841,536 shares and made no purchases.
WEST ALFRED P JR is a significant figure at SEI Investments Co, serving as the Executive Chairman. His role and substantial ownership stake give him a unique perspective on the company's operations and future prospects, making his trading activity particularly noteworthy.
SEI Investments Co is a leading global provider of investment processing, investment management, and investment operations solutions. The company helps corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of the date of the insider's recent sale, the company had a market cap of $8.044 billion.
The insider transaction history for SEI Investments Co shows a clear trend towards selling. Over the past year, there have been 20 insider sells and no insider buys. This trend is illustrated in the following image:
The relationship between insider trading activity and stock price can be complex. However, it's worth noting that the insider's recent sale occurred with the stock trading at $60.45, which is below its GuruFocus Value of $64.38. This suggests that the insider may believe the stock is currently undervalued.
The stock's price-earnings ratio of 20.53 is higher than both the industry median of 13.11 and the company's historical median. This could indicate that the market has high expectations for the company's future earnings growth.
The GuruFocus Value is an intrinsic value estimate that takes into account historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts. The following image provides a visual representation of the stock's GF Value:
With a price-to-GF-Value ratio of 0.94, SEI Investments Co is considered fairly valued. This suggests that the stock's current price accurately reflects its intrinsic value, according to the GF Value estimate.
In conclusion, the insider's recent sale of SEI Investments Co shares, along with the broader trend of insider selling over the past year, could be a signal for investors to monitor. While the stock appears to be fairly valued based on its GF Value, the high price-earnings ratio relative to the industry median and the company's historical median could be a cause for concern.
