Short Interest in Sea Limited Sponsored ADR (NYSE:SE) Decreases By 36.5%

Sea Limited Sponsored ADR (NYSE:SE) was the recipient of a significant drop in short interest in July. As of July 31st, there was short interest totaling 12,274,187 shares, a drop of 36.5% from the July 15th total of 19,320,948 shares. Based on an average daily trading volume, of 4,244,739 shares, the short-interest ratio is presently 2.9 days. Currently, 2.0% of the company’s stock are sold short.

Analysts Set New Price Targets

SE has been the subject of several analyst reports. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a research note on Monday, July 20th. Weiss Ratings upgraded SEA from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, August 12th. TD Cowen reissued a “hold” rating on shares of SEA in a research report on Monday. Zacks Research cut SEA from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 11th. Finally, Jefferies Financial Group restated a “buy” rating on shares of SEA in a research note on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $151.90.

Trending Headlines about SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Howard Marks’ Oaktree Capital disclosed a new Sea Limited position worth approximately $60.9 million. The investment may support investor confidence in Sea’s long-term growth potential after the stock’s recent decline. Howard Marks article
• Positive Sentiment: Sea’s latest quarterly revenue increased 48.3% year over year to $7.79 billion, exceeding analysts’ $7.12 billion estimate. The company’s digital entertainment, e-commerce and financial-services businesses continue to provide significant growth momentum.
• Neutral Sentiment: Analysts maintain a generally favorable view, with a “Moderate Buy” consensus and an average price target of $151.90. However, the stock’s valuation remains elevated at roughly 45 times earnings, leaving shares sensitive to earnings execution and growth expectations.
• Negative Sentiment: Sea reported quarterly earnings of $0.70 per share, missing the $0.86 consensus estimate. The earnings shortfall may be weighing on the stock despite the strong revenue performance.
• Negative Sentiment: Several senior executives sold shares recently: CEO Xiaodong Li sold approximately $2.38 million, COO Gang Ye sold $3.72 million, President Zhimin Feng sold $1.86 million, and other insiders sold additional shares. The broad-based selling, totaling more than $8 million in the reported transactions, can raise concerns about near-term valuation or insider expectations. Gang Ye insider sale Xiaodong Li insider sale

SEA Stock Performance

Shares of SEA stock traded down $3.28 during mid-day trading on Tuesday, hitting $116.17. 4,316,723 shares of the stock were exchanged, compared to its average volume of 5,004,346. SEA has a 12 month low of $77.05 and a 12 month high of $199.30. The company has a 50-day simple moving average of $103.23 and a 200 day simple moving average of $96.65. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.48 and a current ratio of 1.49. The company has a market capitalization of $70.99 billion, a P/E ratio of 44.85, a P/E/G ratio of 1.10 and a beta of 1.54.

SEA (NYSE:SE) last released its earnings results on Tuesday, August 11th. The Internet company based in Singapore reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.86 by ($0.16). The business had revenue of $7.79 billion during the quarter, compared to the consensus estimate of $7.12 billion. SEA had a net margin of 5.98% and a return on equity of 13.54%. The business’s revenue was up 48.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.65 earnings per share. Sell-side analysts anticipate that SEA will post 3.23 earnings per share for the current fiscal year.

Insider Transactions at SEA

In related news, COO Gang Ye sold 30,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $129.35, for a total value of $3,880,500.00. Following the transaction, the chief operating officer owned 430,000 shares of the company’s stock, valued at approximately $55,620,500. This trade represents a 6.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Xiaodong Li sold 1,057,650 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $129.80, for a total transaction of $137,282,970.00. Following the completion of the transaction, the chief executive officer directly owned 288,450 shares in the company, valued at approximately $37,440,810. The trade was a 78.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,705,180 shares of company stock valued at $206,179,409 over the last quarter. Corporate insiders own 0.22% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Zions Bancorporation National Association UT increased its position in shares of SEA by 539.6% during the 4th quarter. Zions Bancorporation National Association UT now owns 307 shares of the Internet company based in Singapore’s stock valued at $39,000 after purchasing an additional 259 shares during the last quarter. Cornerstone Planning Group LLC boosted its holdings in shares of SEA by 26.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 831 shares of the Internet company based in Singapore’s stock worth $70,000 after buying an additional 174 shares during the last quarter. Cullen Frost Bankers Inc. grew its position in SEA by 102.5% during the fourth quarter. Cullen Frost Bankers Inc. now owns 1,132 shares of the Internet company based in Singapore’s stock valued at $144,000 after buying an additional 573 shares during the period. Osbon Capital Management LLC bought a new position in SEA during the fourth quarter valued at about $175,000. Finally, EverSource Wealth Advisors LLC increased its holdings in SEA by 43.1% during the first quarter. EverSource Wealth Advisors LLC now owns 2,493 shares of the Internet company based in Singapore’s stock worth $206,000 after buying an additional 751 shares during the last quarter. Institutional investors own 59.53% of the company’s stock.

SEA Company Profile

Sea Limited (NYSE: SE) is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.

Sea’s digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.