SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments has demonstrated positive growth across its diverse segments, capitalizing on rising asset values, which significantly contributes to its asset-based revenue model. The company's institutional investor margin improved to 48.3% from 47.6%, reflecting effective management and operational efficiency. Furthermore, SEI's robust sales pipeline, including private banking, positions the firm to sustain its profit margins while balancing its clientele across various banking and financial services sectors.

SEI Investments has experienced a decline in its operating margins, with the private banks segment decreasing from 16.7% to 16.1% and overall margins dropping to 27% from 29%, attributed to ongoing investments aimed at supporting sales growth. Additionally, the company's net sales events significantly decreased to $29.2 million in the second quarter of 2025, down from $46.6 million in the previous quarter, indicating a potential slowdown in demand. Furthermore, while operating earnings per share were slightly above expectations, the core trends reveal weaker performance, compounding concerns as management anticipates margins will remain at low levels through the end of the year.