Core Insights - SEI has completed the first stage of its strategic investment in Stratos Wealth Holdings, acquiring the U.S.-based Stratos business for approximately $441 million, which constitutes about 81% of the total transaction value [1] - The partnership aims to enhance the wealth management ecosystem by combining SEI's strengths in advice, asset management, and administration with Stratos' independent advisory platform [3][4] - Stratos operates a national network of over 350 financial advisors across 29 states, advising approximately $38 billion in client assets [5][8] 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 [7] - Stratos Wealth Holdings supports independent financial advisors through flexible affiliation models and offers practice management consulting, operations, IT, and compliance services [8] Transaction Details - SEI will pay a total cash consideration of approximately $544 million for 57.5% of the equity of SEI-Eclipse Holding Company, with legacy Stratos equity holders retaining 42.5% [5] - The second stage of the transaction, involving the purchase of the Mexico-based NSC business, is expected to close in 2026, subject to regulatory approval [6]

Core Insights - Sei has integrated with the prediction market Kalshi, enhancing its capabilities in the event-driven marketplace [1] - Sei claims to be the fastest Level 1 blockchain, with transaction speeds of 400ms, and the upcoming Sei Giga network upgrade is expected to achieve 5 gigabits per second throughput, equating to approximately 200,000 transactions per second while maintaining sub-400ms finality [1] - Kalshi, regulated by the CFTC, allows traders to execute event contracts on Sei using USDC, combining regulatory oversight with high-performance decentralized network [2] Company Overview - Sei Labs was founded in 2021 by Jeffrey Feng and Jayendra Jog, with the mainnet beta launch occurring in July 2024 [2] - Sei has reported a significant user growth, reaching 81.5 million users and adding over 230,000 new users in a single day [2] - SEI Investments Company stock (SEIC) is traded on NASDAQ, with a market capitalization of approximately $9.9 billion [2]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score evaluates stocks based on projected earnings and sales growth, targeting companies with strong financial health [4] - Momentum Score identifies trends in stock prices and earnings estimates, assisting investors in timing their trades [5] - VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks but high Style Scores may still pose risks if their earnings forecasts are declining [10] Company Spotlight: SEI Investments - SEI Investments Co. is a leading asset management firm based in Oaks, PA, specializing in wealth management solutions [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - SEI Investments is particularly appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 26.1% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate of $5.56 per share further enhance its attractiveness [12]

Core Insights - SEI has launched a streamlined implementation model and scalable platform specifically designed for community banks and trust companies managing less than $1 billion in assets, with Clermont Trust USA being the first to utilize this platform [1][3]. Company Overview - SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services, focusing on helping clients effectively deploy their capital [6][7]. - As of September 30, 2025, SEI manages, advises, or administers approximately $1.8 trillion in assets [7]. Strategic Partnership - Clermont Trust USA aims to deliver customized trust and advice solutions, leveraging SEI's Wealth Platform to enhance operational efficiency and client service [2][3]. - The partnership emphasizes the need for scalable, integrated solutions to address complex wealth management challenges [2][4]. Platform Features - The SEI Wealth Platform offers a comprehensive suite of services, including advanced reporting and analytics tools, business process outsourcing, and access to SEI's asset management offerings [3][6]. - The platform is designed for quick implementation, allowing firms to enhance technology and user experience with minimal disruption [3][5]. Market Context - SEI has been serving trust companies and community banks for over 55 years, recognizing the challenges they face in a competitive wealth management landscape [4]. - The new model aims to reduce costs and improve access to modern solutions, addressing the limitations posed by high technology costs and complex implementations [4][5].

Financial Performance - Revenues for the three months ended September 30, 2025, increased by 8% to $578.5 million compared to $537.4 million in 2024[139] - Net income attributable to SEI Investments Company for the nine months ended September 30, 2025, rose by 28% to $542.8 million from $425.4 million in 2024[139] - Total revenues increased by $20.6 million, or 16%, in the three-month period and by $51.1 million, or 14%, in the nine-month period ended September 30, 2025, primarily driven by increased fee revenue from the SEI Integrated Cash Program[155] Assets and Management - Average assets under administration increased by $131.6 billion, or 13%, to $1.1 trillion during the first nine months of 2025 compared to $998.4 billion in 2024[139] - Total assets under management as of September 30, 2025, increased by 10% to $541.5 billion from $493.3 billion in 2024[143] - Client assets under administration rose by 16% to $1.2 trillion as of September 30, 2025, compared to $1.0 trillion in 2024[143] - Total assets for Institutional Investors increased to $88,886 million in Q3 2025, up 2% from $87,445 million in Q3 2024[152] - Total platform assets reached $119,123 million in Q3 2025, reflecting a 14% increase from $104,745 million in Q3 2024[152] Shareholder Actions - SEI repurchased 6.2 million shares of its common stock for $515.2 million in the first nine months of 2025[141] - Cash dividends paid were $123.3 million in the first nine months of 2025, compared to $120.3 million in the same period of 2024[187] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 22.3%, down from 23.4% in the same period of 2024[141] - Corporate overhead expenses rose to $42.8 million in the three months ended September 30, 2025, compared to $37.9 million in 2024, primarily due to increased personnel costs and professional fees related to M&A activity[160] - Stock-based compensation expense increased to $42.0 million for the nine months ended September 30, 2025, compared to $37.2 million in 2024, driven by new equity awards granted[175] Acquisitions and Divestitures - The sale of the Family Office Services business resulted in a net gain of $94.4 million, contributing $0.58 to diluted earnings per share in Q2 2025[139] - SEI entered into an agreement to acquire 57.5% of Stratos Wealth Holdings for approximately $527.0 million, with the transaction expected to close in two stages[140] - The divestiture of the Family Office Services business was completed on June 30, 2025, resulting in a gain of $94.4 million, net of transaction costs[177] Regulatory and Compliance - The company has undergone or is scheduled for reviews and examinations by various regulatory authorities, which may result in remediation activities or enforcement proceedings[179] - Governmental scrutiny and regulatory inquiries have increased significantly, impacting management's focus and potentially affecting business operations[196] - Compliance with anti-money laundering and financial transparency laws is mandatory, which may lead to reduced sales or modifications of investment and banking solutions[197] - The company faces higher costs and compliance risks due to economic sanctions and anti-corruption laws globally[198] - Privacy and data protection regulations, such as GDPR and CCPA, require ongoing compliance efforts, incurring substantial costs[199] - Increased regulatory activity may significantly impact the company, leading to higher expenses and potential revenue reductions[201] - The financial services industry is experiencing extensive changes in regulations, affecting broker-dealers and investment advisors[201] Market Risks - Market risks, including changes in capital markets and interest rates, can significantly affect the company's revenues and earnings[204] - There have been no material changes to the company's market risk disclosures as reported in the Annual Report for 2024[204]

Core Viewpoint - The article compares Federated Hermes (FHI) and SEI Investments (SEIC) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - FHI has a Zacks Rank of 1 (Strong Buy), while SEIC has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FHI [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting an improving earnings outlook for FHI [3] Group 2: Valuation Metrics - FHI has a forward P/E ratio of 10.35, compared to SEIC's forward P/E of 14.82, indicating that FHI may be undervalued [5] - FHI's PEG ratio is 0.53, while SEIC's PEG ratio is 1.23, further suggesting that FHI is a better value option when considering expected earnings growth [5] - FHI's P/B ratio is 3.35, whereas SEIC's P/B ratio is 4.22, reinforcing the notion that FHI is more attractively priced [6] Group 3: Value Grades - FHI has earned a Value grade of B, while SEIC has a Value grade of C, indicating that FHI is viewed as a superior value investment based on various valuation metrics [6]

Market Adoption - BlackRock, Apollo, Hamilton Lane, Nomura, Brevan Howard 等公司，共计 15 万亿美元资产管理规模 (AUM) 选择 SEI 作为 RWA (Real World Asset) 结算平台 [1] - DTCC 每年处理 2 quadrillion 美元交易额，SEI 获得其中 0.01% 的份额，交易额将达到 2000 亿美元 [1] Financial Implication - SEI 当前市值为 18 亿美元 [1] Competitive Advantage - 首个锁定跨机构结算的区块链平台将赢得整个市场 [1]

Core Insights - SEI Investments Company has approved an increase in its stock repurchase program by an additional $650 million, raising the total authorization to approximately $773.2 million, which includes $123.2 million remaining as of October 20, 2025 [1] Company Overview - SEI (NASDAQ: SEIC) is a prominent global provider of financial technology, operations, and asset management services within the financial services industry, managing, advising, or administering approximately $1.8 trillion in assets as of September 30, 2025 [2]

Core Insights - SEI Investments Co. reported third-quarter 2025 earnings per share (EPS) of $1.30, exceeding the Zacks Consensus Estimate of $1.25, and reflecting a year-over-year increase of 9.2% [1][9] - The company's net income attributable to SEI Investments was $164.2 million, a 6% increase from the previous year, surpassing the estimate of $148.2 million [2] - Total revenues reached $578.5 million, up 7.7% year over year, driven by higher asset management and administration fees, although it fell short of the Zacks Consensus Estimate of $579.5 million [3][9] - Total expenses increased to $418.6 million, a rise of 6.3% year over year, influenced by nearly all cost components except for facilities and depreciation [4] - As of September 30, 2025, assets under management (AUM) were $541.5 billion, reflecting a 9.8% increase from the prior year, while client assets under administration (AUA) reached $1.21 trillion, up 16% year over year [5] - SEI Investments repurchased 1.6 million shares for $141.6 million at an average price of $90.02 per share during the reported quarter [6] - The company's global presence, diverse product offerings, and strong AUM are expected to support revenue growth, despite concerns over elevated operating expenses [7] Comparative Performance - BlackRock reported third-quarter 2025 adjusted earnings of $11.55 per share, surpassing estimates and reflecting a slight year-over-year increase, with AUM reaching a record high of $13.46 trillion [8]

Core Insights - SEI Investments (SEIC) reported revenue of $578.51 million for the quarter ended September 2025, marking a year-over-year increase of 7.7% and an EPS of $1.30 compared to $1.19 a year ago, with an EPS surprise of +4% [1][3] Financial Performance - Revenue of $578.51 million represents a slight miss of -0.17% against the Zacks Consensus Estimate of $579.5 million [1] - The company’s shares have returned -4.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] Assets Under Management - Investments in New Business: $3.24 billion, slightly below the $3.29 billion average estimate [4] - Investment Advisors: $88.64 billion, exceeding the $86.94 billion average estimate [4] - Private Banks: $31.21 billion, slightly above the $31.17 billion estimate [4] - Institutional Investors: $84.26 billion, below the $84.63 billion average estimate [4] - LSV - Equity and Fixed Income programs: $95.8 billion, surpassing the $93.64 billion average estimate [4] Revenue Breakdown - Revenue from Investment Advisors: $147.47 million, a +16.3% change year-over-year, exceeding the $143.82 million estimate [4] - Revenue from Investment Managers: $207.05 million, a +12.2% change year-over-year, above the $204.78 million estimate [4] - Revenue from Private Banks: $143.99 million, a +3.8% change year-over-year, slightly below the $145.32 million estimate [4] - Revenue from Institutional Investors: $71.83 million, a +0.3% change year-over-year, close to the $72.05 million estimate [4] - Revenue from Information processing and software servicing fees: $116.55 million, a +2.7% change year-over-year, below the $122.9 million estimate [4] - Revenue from Asset management, administration and distribution fees: $461.96 million, a +9% change year-over-year, slightly above the $461.68 million estimate [4]