The board of directors of SEI Investments (SEIC) declared a 9% hike in its regular semi-annual dividend and approved an enhancement in its stock repurchase program. The new dividend of 24 cents, which yields 1.2% based on the Dec 9 closing price, is payable on Jan 6, 2015, to shareholders of record as on Dec 23, 2014. Prior to this, the company last hiked its dividend by 10% to 22 cents in Dec 2013.
The share repurchase program has been enhanced by $100 million which brings up the total unutilized authorization to approximately $131 million. The company has spent around $250 million in repurchasing approximately 7.2 million shares year to date.
SEI Investments is a global provider of investment processing, management and operations solutions to corporations, financial institutions, financial advisors and high net worth families. The company had $249 billion in assets under management as of Sep 30, 2014.
SEI Investments has been continuously beating the consensus estimates over the past five quarters with an average beat of 6.52%. For the nine months ended Sep 30, 2014, revenues grew 14.04% to $943,248 and earnings per share were up 10% to $1.39 from Dec 2013. We believe its financial strength will help it further enhancing shareholder value.
Further, the company has $1.48 billion in total assets including $583 million in cash and cash equivalents, reflecting a strong capital and liquidity position.
SEI Investments currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Investment Management sector include KKR & Co LP (KKR) and Monroe Capital (MRCC), both sporting a Zacks Rank #1 (Strong Buy); while Noah Holdings Ltd. (NOAH) carries a Zacks Rank #2 (Buy).
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