Solid Quarter From SEI Investments Fuels A Breakout


Shares ofSEI Investments ( SEIC ) remain under accumulation after the company reported solid second-quarter results last week.

The company provides wealth management and advisory services to corporations, financial institutions, financial advisers and high-net-worth families.

SEI Investments has a market capitalization of $5.5 billion. It pays a semi-annual dividend of 20 cents a share, giving it a yield of 1.3%. It has a solid dividend growth rate of 45%.

On July 18, the company reported second-quarter profit of 47 cents a share, up 68% from a year ago and nicely above the consensus estimate of 34 cents. Sales rose 14% to $274.6 million. Its Private Bank segment accounted for just over $95 million in revenue. Revenue was pretty much evenly split in its other three segments: Investment advisers, institutional investors and investment managers.

Headed into Tuesday, SEI Investments showed three straight days of gains in above-average volume. Last week, it cleared a base-on-base pattern with a buy point of 31.39. At one point Tuesday, it was only 2% above the buy point, still within buying range.

The good news is that several names in IBD's Finance-Investment Management group continue to boast strong fundamentals and technicals. The bad news is that the group has been falling in IBD's 197 Industry Group Rankings. It recently ranked 98th, down from 30th three months ago. Still, the group is up 28% year-to-date and has rallied nicely after a 13% pullback. It's up 11% since June 24 compared to an 8% gain for the S&P 500.

Other leaders in the group still working on bases or within buying range includeBlackRock ( BLK ), Blackstone Group ( BX ) andWaddell & Reed Financial ( WDR ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas

Referenced Stocks: BLK , BX , SEIC , WDR

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