SEA (NYSE:SE) Sets New 52-Week Low Following Insider Selling

Sea Limited Sponsored ADR (NYSE:SE)’s share price reached a new 52-week low during trading on Wednesday following insider selling activity. The company traded as low as $76.63 and last traded at $77.0650, with a volume of 6,355,858 shares trading hands. The stock had previously closed at $80.43.

Specifically, CFO Tianyu Hou sold 10,000 shares of SEA stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $89.03, for a total value of $890,300.00. Following the completion of the sale, the chief financial officer directly owned 35,000 shares in the company, valued at $3,116,050. This trade represents a 22.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Yanjun Wang sold 800 shares of the company’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $81.61, for a total transaction of $65,288.00. Following the sale, the insider owned 75,980 shares of the company’s stock, valued at $6,200,727.80. The trade was a 1.04% decrease in their position. The disclosure for this sale is available in the SEC filing. In other news, insider Yanjun Wang sold 1,000 shares of the stock in a transaction on Monday, October 19th. The stock was sold at an average price of $90.37, for a total value of $90,370.00. Following the transaction, the insider owned 76,780 shares of the company’s stock, valued at $6,938,608.60. This represents a 1.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analyst Ratings Changes

SE has been the subject of a number of analyst reports. Royal Bank Of Canada raised SEA from a “sector perform” rating to a “buy” rating in a research note on Tuesday, September 8th. Benchmark boosted their price objective on shares of SEA from $140.00 to $175.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Barclays boosted their target price on SEA from $122.00 to $156.00 and gave the company an “overweight” rating in a research note on Wednesday, August 12th. Morgan Stanley restated an “overweight” rating and set a $153.00 price objective on shares of SEA in a research note on Thursday, August 13th. Finally, Weiss Ratings upgraded shares of SEA from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $149.40.

SEA News Roundup

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Sea reported plans to launch Sea Cloud, an AI-focused enterprise platform built on infrastructure supporting Shopee, Garena and Monee. The initiative could create a new growth avenue and monetize Sea’s technology capabilities. Sea stock trades down report
• Positive Sentiment: Traders purchased 11,763 call options, about 33% above typical daily volume, suggesting some speculative investors are positioning for a rebound or future upside.
• Neutral Sentiment: CEO Forrest Li said Sea’s digital financial-services unit, Monee, could eventually pursue an initial public offering as it approaches the scale to operate independently. A listing could unlock value, although timing and execution remain uncertain. Monee IPO report
• Neutral Sentiment: Sea is receiving increased investor attention, with Zacks users actively searching for analysis of whether the stock is a buy. The article does not provide a new rating or earnings estimate that would materially change the investment case. Zacks Sea analysis
• Negative Sentiment: Insider selling is adding to investor concern. CFO Tianyu Hou sold 10,000 shares for approximately $890,300, reducing his holdings by 22.2%; insider Yanjun Wang also sold additional shares. Such sales may weigh on sentiment, although they do not necessarily signal deteriorating fundamentals. SEC insider filing
• Negative Sentiment: Investors may be concerned that Sea Cloud requires substantial investment and could distract from its core e-commerce, gaming and financial-services businesses. The stock also remains vulnerable after its latest quarterly EPS missed consensus despite strong revenue growth.

SEA Stock Down 4.2%

The stock’s fifty day simple moving average is $106.17 and its 200-day simple moving average is $98.66. The stock has a market cap of $47.09 billion, a P/E ratio of 29.76, a P/E/G ratio of 0.90 and a beta of 1.54. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.48 and a current ratio of 1.49.

SEA (NYSE:SE) last announced its earnings results on Tuesday, August 11th. The Internet company based in Singapore reported $0.70 EPS for the quarter, missing the consensus estimate of $0.86 by ($0.16). SEA had a return on equity of 13.54% and a net margin of 5.98%. The business had revenue of $7.79 billion for the quarter, compared to the consensus estimate of $7.12 billion. During the same period in the prior year, the business posted $0.65 earnings per share. The firm’s revenue for the quarter was up 48.3% compared to the same quarter last year. As a group, research analysts forecast that Sea Limited Sponsored ADR will post 2.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SEA

Large investors have recently added to or reduced their stakes in the stock. Carrhae Capital LLP bought a new position in SEA during the 2nd quarter worth $140,501,000. Public Employees Retirement System of Ohio bought a new stake in shares of SEA during the 2nd quarter valued at $37,527,000. Assenagon Asset Management S.A. lifted its position in shares of SEA by 80.6% during the 3rd quarter. Assenagon Asset Management S.A. now owns 563,692 shares of the Internet company based in Singapore’s stock valued at $54,881,000 after acquiring an additional 251,517 shares during the period. Livforsakringsbolaget Skandia Omsesidigt bought a new stake in shares of SEA during the 2nd quarter valued at $12,410,000. Finally, Ninety One North America Inc. acquired a new stake in shares of SEA during the 3rd quarter worth $9,734,000. Institutional investors and hedge funds own 59.53% of the company’s stock.

SEA Company Profile

Sea Limited is a Singapore-based global technology company founded in 2009. Formerly known as Garena, the company operates digital businesses serving consumers and merchants primarily in Southeast Asia, Taiwan and selected markets in Latin America and other regions.

Through Shopee, Sea’s e-commerce platform, the company provides online marketplaces that connect buyers and sellers and offer supporting services such as payments, logistics and merchant tools. Garena, its digital entertainment business, develops and publishes online games and distributes third-party titles, while also operating digital entertainment platforms and services.

SeaMoney is the company’s digital financial services division.