Form 4: SEI Investments Director Exercises, Sells Shares

SEI Investments Director Kathryn McCarthy exercised stock options and subsequently sold an equal number of common shares under a pre-arranged trading plan.

Summary

• Director Kathryn McCarthy acquired 10,000 shares of SEI Investments Co common stock through the exercise of options at a price of $53.34 per share.
• Simultaneously, McCarthy sold 10,000 shares of common stock at a weighted average price of $85.66 per share, with individual sales ranging from $85.51 to $85.80.
• The transactions, which occurred on September 29, 2025, were executed under a Rule 10b5-1 pre-arranged trading plan.
• Following these transactions, McCarthy's direct beneficial ownership of common stock decreased from 85,641 shares to 75,641 shares.
• Two tranches of options, each for 5,000 shares with an exercise price of $53.34, were fully exercised and are no longer beneficially owned. These options were received as employment compensation.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction involving the exercise of options and sale of shares under a Rule 10b5-1 plan. This type of transaction is generally neutral in sentiment as it's often pre-planned and not indicative of a change in company fundamentals or management's outlook.

Positives

• Director McCarthy realized a profit from exercising options at $53.34 and selling shares at an average of $85.66.
• The transaction was conducted under a Rule 10b5-1 plan, indicating a pre-scheduled, non-discretionary trade.

Negatives

• Director McCarthy's direct beneficial ownership of common stock decreased by 10,000 shares following the sale.

Industry Context

This is a routine insider transaction by a director, common in the financial services industry, particularly when executives exercise vested stock options and sell shares for liquidity or diversification. The use of a Rule 10b5-1 plan indicates a pre-scheduled transaction, reducing concerns about opportunistic trading.

Corporate Governance

Related Party Transactions

• Director Kathryn McCarthy's exercise of options and sale of common stock constitutes a related party transaction as she is an insider of SEI Investments Co.

Stakeholder Impact

• **Shareholders**: The sale of shares by a director could be perceived as a slight reduction in insider ownership, though it's offset by the exercise of options and conducted under a pre-arranged plan. The transaction itself does not directly impact company operations or financial performance.
• **Employees**: No direct impact mentioned.
• **Customers**: No direct impact mentioned.
• **Suppliers**: No direct impact mentioned.
• **Creditors**: No direct impact mentioned.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction where a director exercised stock options and sold an equivalent number of shares under a pre-arranged 10b5-1 plan. Such transactions are typically for personal financial planning, tax management, or portfolio diversification and do not usually signal a change in the company's fundamental outlook or performance. Therefore, it provides no new information that would warrant a change from a 'hold' recommendation based solely on this filing.

Keywords

SEI Investments, SEIC, Kathryn McCarthy, Insider Trading, Form 4, Stock Options, Share Sale, Director Transaction, Rule 10b5-1