SEI Investments slips after third-quarter results show wider margins

What happened

SEI Investments (SEIC) fell 3.6% on October 22, 2026, because of its third-quarter results that beat estimates and showed wider margins. The company reported third-quarter 2026 revenue up 14% year-over-year, adjusted operating profit up 25% and adjusted earnings per share rising 24% to $1.64, beating the Zacks consensus of $1.59, according to Seeking Alpha and Zacks Investment Research. The stock opened 0.2% above the previous close and closed at $104.50 as trading volume ran 2.1 times its 20-day average. The S&P 500 fell 1.2% that session while the Financial Services sector median rose 1.5%, leaving the stock 5.1 percentage points worse than the sector median.

How big was the move

The decline was larger than a typical daily swing: the move was 3.5 times a typical daily move for this stock. Trading volume measured 2.1 times its 20-day average, signalling heavier-than-normal activity. Over the last five sessions the stock fell 0.7% while the S&P 500 over five sessions fell 1.0%. In the past five years the stock had nine sessions with a decline of at least 3.6%; twenty trading days later the median result was a gain of 1.8% and six of nine were higher.

The technical picture

The stock traded essentially at its short-term average, 0.0% above its 20-day moving average and 1.8% below its 50-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has been above its 200-day average for 128 consecutive trading days. It was 6.8% below the 52-week high. The Relative Strength Index (14 days) stood at 48, inside a neutral range between 30 and 70. Volatility was 16% annualized over 60 days, lower than 87% of its own readings over five years. Over one month the stock fell 0.3%; over three months it rose 5.3%, and over one year it rose 26.7%, which was 12.9 percentage points ahead of the S&P 500.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $2.54 billion, which grew 12.9% from a year earlier. Diluted earnings per share were $5.75, which rose 5.7% from a year earlier, and free-cash-flow margin was 27.2%. Gross margin widened to 76.1% from 59.8% a year earlier and operating margin was 29.5% versus 27.2% a year earlier. Return on invested capital was 16.8% and the balance sheet showed net cash of $353.9 million. Share count over one year decreased by 3.4%.

Valuation measures showed a price to trailing earnings of 18.2 times trailing earnings and a price to forward earnings of 16.5 times expected earnings. The price to trailing earnings was higher than 71% of its own readings over the past five years, with a five-year median of 17.4 times earnings. Free-cash-flow yield was 5.5%.

PromtFinance scores painted a mixed picture. Value and Growth were weak at 37 and 38 respectively. Quality scored 87, which is strong. Momentum was positive at 71 and Revisions were exceptional at 95. Stability was neutral at 63. The combination contrasts strong profitability and recent analyst upgrades with modest valuation and growth scores.

Earnings and analyst expectations

SEI reported its last results on October 21, 2026, with earnings per share of $1.64 against $1.58 expected, 3.8% above estimates. That extended a streak of seven consecutive quarters beating estimates and the average surprise over the last four reports was 8.4% above estimates. The typical two-day reaction after recent reports was that the stock rose 0.5%.

Analysts covering the stock numbered 14, with a consensus rating of Buy and 79% of analysts assigning Buy or Strong Buy. The consensus price target was $124.50, which was 19.1% above the closing price on October 22, 2026. The next scheduled report is October 28, 2026.

What to watch

• October 28, 2026: next report date.
• Consensus price target of $124.50 and the gap of 19.1% versus the closing price.
• Trading volume at 2.1 times its 20-day average and the size of the move being 3.5 times a typical daily move.
• PromtFinance Revisions score of 95 (Exceptional) and Quality score of 87 (Strong).