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

Shares of Sea Limited Sponsored ADR (NYSE:SE) reached a new 52-week low during trading on Wednesday after an insider sold shares in the company. The company traded as low as $76.63 and last traded at $77.0650, with a volume of 6,355,858 shares traded. The stock had previously closed at $80.43.

Specifically, CFO Tianyu Hou sold 10,000 shares of the business’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $89.03, for a total transaction of $890,300.00. Following the transaction, the chief financial officer directly owned 35,000 shares in the company, valued at $3,116,050. The trade was a 22.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Yanjun Wang sold 800 shares of the company’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $81.61, for a total transaction of $65,288.00. Following the transaction, the insider owned 75,980 shares in the company, valued at $6,200,727.80. The trade was a 1.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other news, insider Yanjun Wang sold 1,000 shares of the firm’s 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 completion of the transaction, the insider owned 76,780 shares in the company, valued at $6,938,608.60. This trade represents a 1.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on SE shares. Arete Research set a $152.00 price objective on shares of SEA and gave the company a “buy” rating in a research note on Monday, September 7th. Weiss Ratings upgraded shares of SEA from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, August 12th. Barclays upped their price target on shares of SEA from $122.00 to $156.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a research note on Monday, July 20th. Finally, TD Cowen restated a “hold” rating on shares of SEA in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $149.40.

Key Headlines Impacting SEA

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 has a fifty day moving average of $106.17 and a two-hundred day moving average of $98.66. The company has a quick ratio of 1.48, a current ratio of 1.49 and a debt-to-equity ratio of 0.07. The stock has a market cap of $47.09 billion, a price-to-earnings ratio of 29.76, a PEG ratio of 0.90 and a beta of 1.54.

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

Institutional Investors Weigh In On SEA

A number of large investors have recently modified their holdings of the stock. Crossmark Global Holdings Inc. increased its stake in shares of SEA by 19.8% in the third quarter. Crossmark Global Holdings Inc. now owns 20,129 shares of the Internet company based in Singapore’s stock valued at $1,960,000 after buying an additional 3,329 shares in the last quarter. Bank Pictet & Cie Europe AG increased its position in SEA by 21.5% in the 3rd quarter. Bank Pictet & Cie Europe AG now owns 116,811 shares of the Internet company based in Singapore’s stock valued at $11,406,000 after acquiring an additional 20,680 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd increased its position in SEA by 1.6% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 43,439 shares of the Internet company based in Singapore’s stock valued at $4,229,000 after acquiring an additional 700 shares in the last quarter. Abel Hall LLC bought a new position in shares of SEA in the third quarter worth about $217,000. Finally, IFP Advisors Inc raised its stake in shares of SEA by 11.6% in the third quarter. IFP Advisors Inc now owns 4,061 shares of the Internet company based in Singapore’s stock worth $395,000 after acquiring an additional 421 shares during the last quarter. 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.