SEA (NYSE:SE) CEO Xiaodong Li Sells 1,057,650 Shares

Sea Limited Sponsored ADR (NYSE:SE) CEO Xiaodong Li sold 1,057,650 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $129.80, for a total value of $137,282,970.00. Following the completion of the transaction, the chief executive officer owned 288,450 shares of the company’s stock, valued at $37,440,810. The trade was a 78.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.

SEA Stock Performance

Shares of SE stock opened at $123.02 on Friday. The business’s 50-day moving average price is $101.83 and its 200-day moving average price is $96.73. The firm has a market capitalization of $75.17 billion, a price-to-earnings ratio of 47.50, a PEG ratio of 1.16 and a beta of 1.54. Sea Limited Sponsored ADR has a 12 month low of $77.05 and a 12 month high of $199.30. The company has a current ratio of 1.58, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05.

SEA (NYSE:SE) last posted its earnings results on Tuesday, August 11th. The Internet company based in Singapore reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.16). SEA had a return on equity of 13.84% 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 previous year, the firm earned $0.65 earnings per share. The company’s revenue was up 48.3% compared to the same quarter last year. Equities research analysts forecast that Sea Limited Sponsored ADR will post 3.23 EPS for the current year.

Key Headlines Impacting SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Strong revenue growth across all businesses: Second-quarter revenue rose 48.1% year over year to approximately $7.8 billion, exceeding the $7.12 billion analyst estimate. Shopee, fintech division Monee and gaming unit Garena each delivered double-digit growth. Net income increased 10.6% to $458.1 million, while adjusted EBITDA reached $917.2 million. SE Q2 Earnings Miss Estimates as Costs Rise, Revenues Beat and Grew Year Over Year
• Positive Sentiment: Shopee outlook remains favorable: Management maintained its 25% gross merchandise value growth target and raised its Shopee adjusted EBITDA goal to approximately $1 billion, supporting the case for continued e-commerce expansion and improving profitability. SE Q2 Earnings Call Keeps Shopee Growth Outlook Intact
• Positive Sentiment: Analyst support: Benchmark raised its price target from $140 to $175 and assigned a “buy” rating, implying substantial upside from the recent trading level. The broader analyst consensus remains “Moderate Buy,” with an average target of $148.30.
• Neutral Sentiment: AI investment offers longer-term potential: Sea’s partnership with OpenAI may improve Shopee’s product discovery, seller tools and automation, although the financial benefit is not yet established. Sea’s AI Push With OpenAI Could Deepen Shopee’s Competitive Edge
• Negative Sentiment: Profitability missed expectations: Quarterly EPS was $0.70, below the $0.86 consensus estimate. Higher operating costs, increased investment and credit provisions are pressuring margins despite rapid revenue growth. Zacks Research subsequently downgraded SE from “hold” to “strong sell.”
• Negative Sentiment: Heavy insider selling: CEO Xiaodong Li sold 1.06 million shares worth approximately $137.3 million, reducing his holdings by 78.6%. The COO, CFO, president and other insiders also sold shares following the earnings-driven advance, creating a potential overhang and raising valuation concerns.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SE shares. Morgan Stanley restated an “overweight” rating and set a $153.00 price target on shares of SEA in a report on Thursday. Benchmark upped their price objective on shares of SEA from $140.00 to $175.00 and gave the company a “buy” rating in a research note on Wednesday. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a research note on Monday, July 20th. Weiss Ratings upgraded shares of SEA from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday. Finally, Zacks Research cut shares of SEA from a “hold” rating to a “strong sell” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, SEA has a consensus rating of “Moderate Buy” and a consensus price target of $151.90.

Hedge Funds Weigh In On SEA

Several institutional investors have recently added to or reduced their stakes in the business. Zions Bancorporation National Association UT boosted its holdings 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 worth $39,000 after buying an additional 259 shares in the last quarter. Cornerstone Planning Group LLC lifted its position in shares of SEA by 461.5% during the 4th quarter. Cornerstone Planning Group LLC now owns 657 shares of the Internet company based in Singapore’s stock valued at $83,000 after acquiring an additional 540 shares during the period. Cullen Frost Bankers Inc. lifted its position in shares of SEA by 102.5% during the 4th quarter. Cullen Frost Bankers Inc. now owns 1,132 shares of the Internet company based in Singapore’s stock valued at $144,000 after acquiring an additional 573 shares during the period. Osbon Capital Management LLC bought a new position in SEA during the fourth quarter worth $175,000. Finally, Cloud Capital Management LLC boosted its stake in SEA by 8.0% during the fourth quarter. Cloud Capital Management LLC now owns 2,005 shares of the Internet company based in Singapore’s stock worth $255,000 after acquiring an additional 148 shares in the last quarter. 59.53% of the stock is owned by institutional investors and hedge funds.

About SEA

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.