Core Insights - SEI Investments Company reported strong financial results for Q4 2025, with a 16% increase in EPS, 9% growth in revenue, and 11% growth in operating income compared to Q4 2024, achieving an operating margin of 27% [1][2][6] Financial Performance - Q4 2025 revenues reached $607.9 million, up from $557.2 million in Q4 2024, marking a 9% increase. For the full year, revenues totaled $2.3 billion, an 8% increase from $2.1 billion in 2024 [2][6] - Operating income for Q4 2025 was $161.6 million, an 11% increase from $145.5 million in Q4 2024. For the full year, operating income was $627.3 million, a 14% increase from $551.7 million in 2024 [2][6] - Net income attributable to SEI Investments was $172.5 million for Q4 2025, up 11% from $155.8 million in Q4 2024, and $715.3 million for the full year, a 23% increase from $581.2 million in 2024 [2][6] Business Segment Performance - Investment Managers segment revenues increased by 15% to $220.8 million in Q4 2025, with operating profit rising by 25% to $91.3 million [3][4] - Private Banks segment revenues grew by 7% to $149.8 million, with operating profit increasing by 47% to $29.1 million [3][4] - Investment Advisors segment revenues rose by 12% to $156.2 million, with operating profit growing by 15% to $71.9 million [3][4] - Institutional Investors segment revenues increased by 3% to $72.8 million, with operating profit rising by 6% to $34.5 million [3][4] Sales and Market Activity - SEI achieved record net sales events of $149.9 million for the full year, with Q4 net sales events totaling $43.6 million [6] - Private Banks led Q4 with $27.5 million in net sales events, while Investment Managers generated $20.5 million, primarily from U.S.-based alternative asset managers [6] - Institutional Investors recorded negative net sales events of $5.0 million due to client losses in the UK [6] Strategic Initiatives - SEI completed the acquisition of Stratos for $440.8 million, enhancing its capabilities in advisory services and expanding distribution channels [6] - The company emphasized its alignment with long-term industry trends, including increased demand for outsourcing and the convergence of public and private markets [3][6] Shareholder Actions - SEI repurchased 1.2 million shares for $101.0 million during Q4 2025, bringing total shares repurchased for the year to 7.5 million [7]

Core Viewpoint - Analysts expect SEI Investments (SEIC) to report quarterly earnings of $1.34 per share, reflecting a year-over-year increase of 12.6%, with revenues projected at $595.79 million, up 6.9% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.9% higher over the last 30 days, indicating a collective reevaluation by analysts [1][2]. Revenue Projections - Revenue from Asset management, administration, and distribution fees is expected to be $472.28 million, a 7.5% increase year-over-year [4]. - Revenue from Information processing and software servicing fees is projected at $123.71 million, reflecting a 5.1% increase from the prior year [4]. - Revenue from Private Banks is anticipated to be $147.29 million, also a 5.1% increase from the previous year [5]. - Revenue from Investments in New Business is expected to decline to $9.59 million, a significant decrease of 38.9% year-over-year [5]. Assets Under Management - Assets under management for Investments in New Business are estimated at $3.16 billion, up from $3.04 billion year-over-year [5]. - Assets under management for Investment Advisors are projected to reach $97.05 billion, compared to $79.39 billion last year [6]. - Assets under management for Private Banks are expected to be $31.45 billion, an increase from $28.22 billion year-over-year [6]. - Institutional Investors' assets under management are forecasted to be $85.14 billion, up from $76.99 billion in the same quarter last year [7]. - Assets under management for LSV - Equity and Fixed Income programs are estimated at $82.09 billion, down from $86.50 billion year-over-year [7]. - Total assets under management for Investment Managers are projected to reach $240.47 billion, up from $202.57 billion last year [8]. Client Assets Under Administration - Client assets under administration for Investment Managers are expected to reach 1,223,549, compared to 1,032,812 in the previous year [8]. - Client assets under administration for Private Banks are projected to be 8,713, an increase from 8,340 year-over-year [9]. Stock Performance - Over the past month, SEI shares have returned +1.5%, outperforming the Zacks S&P 500 composite's +0.4% change, indicating a positive outlook for the stock [10].

Core Viewpoint - Mackenzie Investments and SEI have launched four new Collective Investment Trusts (CITs) to provide U.S. institutional investors with access to Mackenzie's Global Quantitative Equity strategies, combining advanced data science with human insight to generate alpha while managing risk [1][2][3]. Group 1: New Investment Offerings - The newly launched CITs include the following strategies: Mackenzie Quantitative International Large Cap CIT, Mackenzie Quantitative International Small Cap CIT, Mackenzie Quantitative US Small Cap CIT, and Mackenzie Quantitative Emerging Markets All Cap CIT [7]. - These CITs are designed to streamline access for defined contribution and defined benefit plans to Mackenzie's holistic quantitative investment approach [2]. Group 2: Partnership and Operational Excellence - SEI Trust Company will serve as the trustee for the new CITs, enhancing operational scale and fiduciary capabilities to meet the needs of U.S. institutional investors [3][4]. - The partnership aims to empower institutional investors, allocators, consultants, and recordkeepers with efficient investment options, reflecting a commitment to operational excellence and fiduciary service [4]. Group 3: Company Backgrounds - Mackenzie Investments, a Canadian investment management firm, manages approximately $244 billion (CAD) in assets as of December 31, 2025, and is part of IGM Financial Inc., which has total assets under management and advisement of approximately $310 billion (CAD) [5]. - SEI, a global provider of financial technology and asset management services, manages, advises, or administers approximately $1.8 trillion in assets as of September 30, 2025 [6].

Core Viewpoint - Mackenzie Investments and SEI Trust Company have launched four new Collective Investment Trusts (CITs) to provide U.S. institutional investors with access to Mackenzie's Global Quantitative Equity strategies, combining advanced data science with human insight to generate alpha while managing risk [1][2]. Group 1: Company Overview - Mackenzie Investments is a Canadian investment management firm with approximately $244 billion (CAD) in assets under management as of December 31, 2025, and aims to deliver strong investment performance and innovative portfolio solutions [4]. - SEI is a global provider of financial technology, operations, and asset management services, managing, advising, or administering approximately $1.8 trillion in assets as of September 30, 2025 [5]. Group 2: Collective Investment Trusts Details - The newly launched CITs include the Mackenzie Quantitative International Large Cap CIT, Mackenzie Quantitative International Small Cap CIT, Mackenzie Quantitative US Small Cap CIT, and Mackenzie Quantitative Emerging Markets All Cap CIT [6]. - The CITs are designed to offer defined contribution and defined benefit plans streamlined access to Mackenzie's investment strategies, reinforcing the commitment to U.S. institutional investors [2][3]. Group 3: Trustee and Operational Excellence - SEI Trust Company will serve as the trustee for the CITs, leveraging its 30 years of expertise in the CIT space to provide trustee, accounting, valuation, administrative, and fiduciary services [3]. - The partnership between Mackenzie and SEI aims to enhance operational excellence and fiduciary service, empowering institutional investors with efficient investment options [3].

Core Insights - SEI Investments (SEIC) has consistently surpassed earnings estimates, averaging a 27.42% beat over the last two quarters [1][5] - The company reported earnings of $1.30 per share for the most recent quarter, exceeding the expected $1.25, resulting in a 4.00% surprise [2] - In the previous quarter, SEI reported $1.78 per share against an estimate of $1.18, achieving a significant surprise of 50.85% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for SEI, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for continued earnings beats [5][8] - The current Earnings ESP for SEI is +1.05%, suggesting analysts are optimistic about its near-term earnings potential [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] Zacks Rank and Earnings ESP - SEI holds a Zacks Rank of 2 (Buy), which, combined with its positive Earnings ESP, indicates a strong likelihood of another earnings beat [8] - The next earnings report for SEI is anticipated to be released on January 28, 2026 [8]

Core Viewpoint - SEI Investments is positioned as a strong performer in the asset management sector, particularly due to its focus on institutional investors and its fintech capabilities, which are expected to drive growth in 2026 [1][2][3]. Company Overview - SEI Investments primarily serves institutional investors, differentiating itself from larger firms like BlackRock and Vanguard that cater to both retail and institutional clients [2]. - The company is recognized as a fintech, providing technology solutions for various financial entities, including fund managers and banks, to manage functions such as asset management, compliance, and cybersecurity [3]. Financial Performance - For the first nine months of 2025, SEI's revenue increased by 8% year-over-year, while expenses rose by only 5%, leading to a 32% jump in earnings [6]. - The operating margin improved to 28%, an increase of 8% compared to the previous year, and the return on equity stands at 27.7%, one of the highest in the sector [6]. Market Position and Analyst Sentiment - Analysts are optimistic about SEI, with a 12-month median price target of $109.50 per share, indicating a potential upside of approximately 27% [5]. - 80% of analysts covering SEI rate it as a buy, reflecting strong market confidence [5]. Industry Trends - There is a growing trend of outsourcing among fund managers, driven by the complexity of regulatory environments and the need for technological upgrades [9][10]. - A report indicates that 88% of fund managers plan to increase their outsourcing over the next year, which bodes well for SEI as a leading provider in this space [10]. Strategic Outlook - SEI is expected to continue investing in technology and automation to enhance its service offerings, with plans to optimize margins through cost management [7]. - The company's valuation at 15 times forward earnings is considered attractive for a fintech, suggesting potential for growth amidst increasing demand for its services [11].

Core Viewpoint - The U.S. stock market experienced a decline primarily due to Nvidia's ban on H200 AI chips in China, which negatively impacted major technology stocks and bank earnings [2][10]. Market Overview - The three major U.S. stock indices fell on January 14, 2026, with Nvidia's decline leading the way, affecting other technology stocks [2]. - Major banks like Citigroup and Wells Fargo reported disappointing fourth-quarter results, contributing to the market's downturn [2]. Investment Strategy - Investors are advised to favor low-leverage stocks over high-growth technology stocks to mitigate risks associated with high-debt companies [3][10]. - Recommended companies include REV Group (REVG), TechnipFMC (FTI), Resmed (RMD), Zurn Elkay Water Solutions (ZWS), and SEI Investments (SEIC), all of which exhibit low leverage and solid growth prospects [3][10]. Significance of Low-Leverage Stocks - Leverage refers to borrowing capital for operations and expansion, typically through debt financing, which can pose risks if not managed properly [5][6]. - Companies with excessive reliance on debt financing may face significant losses during economic downturns, making low-leverage stocks a safer investment choice [6][7]. Debt Analysis - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency [8]. - Investors should focus on stocks with solid earnings growth and low debt-to-equity ratios, especially during earnings seasons [8][10]. Stock Recommendations - **REV Group (REVG)**: Reported a 11.1% year-over-year increase in net sales to $664.4 million and a 62.7% surge in adjusted earnings per share [14][15]. - **TechnipFMC (FTI)**: Awarded a significant contract by BP, with a projected revenue increase of 6.6% for 2026 [16][17]. - **Resmed (RMD)**: Received FDA clearance for an AI-enabled medical device, with an expected 8.4% revenue growth for 2026 [18][19]. - **Zurn Elkay Water Solutions (ZWS)**: Recognized as one of America's Most Responsible Companies, with a projected revenue increase of 5.3% for 2026 [20][21]. - **SEI Investments (SEIC)**: Completed multiple client projects, with a forecasted revenue growth of 9.3% for 2026 [22][23].

Core Viewpoint - SEI has appointed Paul Lehman as Head of Bank Asset Management Distribution to enhance its investment solutions for wealth management, focusing on building relationships with banks and affiliated wealth organizations [1][2][3] Group 1: Appointment and Responsibilities - Paul Lehman will lead SEI's bank asset management distribution strategy, overseeing investment sales and partnership development across various banking sectors [1] - Lehman is tasked with deepening relationships with existing bank clients and expanding asset management capabilities to new clients [2] - He will collaborate with investment product development leaders to deliver coordinated investment solutions that align with banks' evolving business models and regulatory structures [2] Group 2: Strategic Importance - SEI aims to help banks differentiate their wealth and trust platforms by providing integrated investment strategies that meet the needs of the market [3] - The company emphasizes the importance of streamlined, comprehensive investment solutions that can be integrated within its technology platform [3] Group 3: Lehman's Background - Paul Lehman brings over 30 years of experience in leading and advising bank trust and wealth organizations, previously serving as Head of the Bank Trust Group at Dimensional Fund Advisors [4] - His past roles include Chief Investment Officer and Head of Capital Management at First Citizens Bank, where he advised high-net-worth clients [4] - Lehman is a Chartered Financial Analyst and holds degrees in business psychology and finance [5] Group 4: Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.8 trillion in assets as of September 30, 2025 [6]

Core Insights - The holiday season is a time for investors to reassess their finances and prepare for the upcoming year, with analysts making S&P 500 projections and gearing up for Q1 earnings [2] Group 1: SEI Investments Co. - SEI Investments is a $10 billion financial services firm transitioning from traditional wealth management to a "wealth-tech" company, providing technology solutions for banks and investors [4] - The SEI Wealth Platform is a key innovation helping legacy financial firms modernize, contributing to analysts' optimism about SEI's transformation [5] - Recent upgrades from Piper Sandler and Keefe, Bruyette, and Woods have moved SEI's stock rating from Neutral to Outperform, with Morgan Stanley raising its price target to $117, indicating a potential upside of nearly 23% [8] Group 2: Copa Holdings SA - Copa Holdings, with a market cap of $5.4 billion, is a significant player in the airline industry, benefiting from its strategic hub in Panama [10] - The company offers a dividend yield of 5.05% with a low payout ratio, and expects to expand capacity by up to 13% with new Boeing aircraft [11] - Analysts have rated Copa Holdings a Strong Buy, with an average price target of $160, suggesting potential upside of over 22% [14] Group 3: FB Financial Corp. - FB Financial, the parent of FirstBank, is focusing on high-growth southern markets following its acquisition by PNC Financial Services Group [15] - Analysts have given FB Financial Outperform ratings, with price targets ranging from $58 to $66, and the stock has already gained more than 5% at the start of 2026 [16] Group 4: Archrock Inc. - Archrock is an energy company specializing in natural gas compression equipment, generating recurring revenue from clients [19] - The company has a 3.27% dividend yield and a 55% payout ratio, making it attractive for income investors [20] - Archrock's stock has received a Strong Buy rating based on analyst upgrades, and it has recently broken above key moving averages, indicating positive momentum [22] Group 5: Serve Robotics Inc. - Serve Robotics is a $1.17 billion company focused on last-mile autonomous delivery, partnering with Uber Eats and DoorDash [23] - Analysts have set high price targets for Serve Robotics, with Oppenheimer rating it a Buy at $20 and Northland Capital Markets raising their target to $26 [25] - The stock has recently broken out of a downtrend, supported by positive technical indicators [25]

Core Viewpoint - SEI Investments (SEIC) shares have increased by 4.9% recently, closing at $85.99, with analysts suggesting a potential upside of 27.3% based on a mean price target of $109.5 [1] Price Targets - The average price target for SEIC ranges from a low of $102.00 to a high of $117.00, with a standard deviation of $8.66, indicating a potential increase of 18.6% to 36.1% from the current price [2] - A low standard deviation suggests a strong agreement among analysts regarding the price targets, which can be a useful indicator for further research [8] Earnings Estimates - Analysts have shown increasing optimism about SEIC's earnings prospects, with a consensus indicating higher earnings estimates, which historically correlates with stock price movements [10] - The Zacks Consensus Estimate for the current year has risen by 1.2% over the past month, reflecting two upward revisions and one downward revision [11] - SEIC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside [12] Analyst Behavior - Analysts often set price targets that may be overly optimistic due to business incentives, which can lead to inflated estimates [7] - While price targets are a common metric, relying solely on them for investment decisions may not be prudent, as they can mislead investors [6][9]