Have SEI Investments Company (NASDAQ:SEIC) Insiders Been Selling Their Stock?

We wouldn't blame SEI Investments Company (NASDAQ:SEIC) shareholders if they were a little worried about the fact that Alfred West, the Executive Chairman recently netted about US$8.6m selling shares at an average price of US$54.41. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.8%.

However if you'd rather see where the opportunities and risks are within SEIC's industry, you can check out our analysis on the US Capital Markets industry.

The Last 12 Months Of Insider Transactions At SEI Investments

In fact, the recent sale by Alfred West was the biggest sale of SEI Investments shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$51.82. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Alfred West ditched 290.73k shares over the year. The average price per share was US$57.48. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of SEI Investments

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SEI Investments insiders own 18% of the company, currently worth about US$1.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About SEI Investments Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that SEI Investments is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in SEI Investments.

But note: SEI Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.