Insider Selling: SEA (NYSE:SE) Insider Sells 30,000 Shares

Key Points

• Jingye Chen sold 30,000 SEA shares at an average of $101.51, generating approximately $3.05 million and reducing the insider’s stake by one-third to 60,000 shares. Chen has made four additional 30,000-share sales since September 9.
• SEA’s latest quarterly revenue rose 48.3% year over year to $7.79 billion, beating estimates, but EPS of $0.70 fell short of the $0.86 consensus.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and a $149.40 price target, although recurring insider selling and the stock’s elevated P/E ratio near 39 may weigh on sentiment.

Sea Limited Sponsored ADR (NYSE:SE - Get Free Report) insider Jingye Chen sold 30,000 shares of the company's stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $101.51, for a total value of $3,045,300.00. Following the sale, the insider owned 60,000 shares of the company's stock, valued at $6,090,600. This trade represents a 33.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

Jingye Chen also recently made the following trade(s):

• On Wednesday, September 16th, Jingye Chen sold 30,000 shares of SEA stock. The shares were sold at an average price of $104.13, for a total value of $3,123,900.00.
• On Monday, September 14th, Jingye Chen sold 30,000 shares of SEA stock. The stock was sold at an average price of $107.94, for a total transaction of $3,238,200.00.
• On Friday, September 11th, Jingye Chen sold 30,000 shares of SEA stock. The stock was sold at an average price of $107.51, for a total value of $3,225,300.00.
• On Wednesday, September 9th, Jingye Chen sold 30,000 shares of SEA stock. The shares were sold at an average price of $108.87, for a total value of $3,266,100.00.

SEA Stock Performance

Shares of SE opened at $101.68 on Monday. Sea Limited Sponsored ADR has a 12-month low of $77.05 and a 12-month high of $195.48. The stock has a market cap of $62.13 billion, a P/E ratio of 39.26, a PEG ratio of 1.02 and a beta of 1.51. The company has a current ratio of 1.49, a quick ratio of 1.48 and a debt-to-equity ratio of 0.07. The company has a 50-day moving average of $111.80 and a two-hundred day moving average of $96.86.

SEA (NYSE:SE - Get Free Report) 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 analysts' consensus estimates of $0.86 by ($0.16). SEA had a net margin of 5.98% and a return on equity of 13.54%. The firm had revenue of $7.79 billion during the quarter, compared to analysts' expectations of $7.12 billion. During the same quarter last year, the company posted $0.65 earnings per share. SEA's revenue for the quarter was up 48.3% on a year-over-year basis. As a group, research analysts predict that Sea Limited Sponsored ADR will post 2.91 EPS for the current fiscal year.

Trending Headlines about SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Analysts remain broadly constructive, with a consensus “Moderate Buy” rating and an average price target near $149.40. Arete Research set a $152 target and Barclays raised its target to $156 while maintaining an overweight rating. Sea analyst ratings and price targets
• Positive Sentiment: Sea’s latest quarterly revenue rose 48.3% year over year to $7.79 billion, exceeding the $7.12 billion consensus estimate. Institutional ownership is also substantial at approximately 59.5%, with several funds recently adding to their positions.
• Neutral Sentiment: The company’s balance sheet is relatively healthy, including a debt-to-equity ratio of 0.07 and liquidity ratios near 1.5. However, a price-to-earnings ratio near 39 makes the stock sensitive to earnings disappointments.
• Neutral Sentiment: Recent Zacks articles highlight increased investor attention but do not identify a new operating catalyst. Zacks investor attention article
• Negative Sentiment: Several insiders sold shares in recent transactions. COO Gang Ye sold 20,000 shares for about $2.08 million, with another report describing a pre-planned sale of 40,000 shares worth roughly $4.2 million. Jingye Chen sold 30,000 shares for approximately $3.12 million, while Yanjun Wang sold 1,200 shares and has made repeated sales since late August. The sales may weigh on sentiment, although the executives still retain meaningful holdings. Sea insider sales and valuation article
• Negative Sentiment: Sea reported quarterly EPS of $0.70, missing the $0.86 consensus estimate despite the revenue beat. The earnings shortfall, insider selling and elevated valuation appear to be outweighing the company’s strong top-line growth in the short term.

Analysts Set New Price Targets

Several equities analysts recently weighed in on SE shares. Barclays lifted their target price on shares of SEA from $122.00 to $156.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Royal Bank Of Canada upgraded SEA from a "sector perform" rating to a "buy" rating in a research note on Tuesday, September 8th. Sanford C. Bernstein reissued an "outperform" rating on shares of SEA in a research report on Monday, July 20th. Benchmark increased 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. Finally, TD Cowen reissued 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, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $149.40.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SE. Cornerstone Planning Group LLC increased its position 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 purchasing an additional 174 shares during the last quarter. Independence Bank of Kentucky lifted its position in shares of SEA by 611.1% during the second quarter. Independence Bank of Kentucky now owns 1,280 shares of the Internet company based in Singapore's stock worth $123,000 after purchasing an additional 1,100 shares during the last quarter. Cullen Frost Bankers Inc. lifted its position in shares of 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 worth $144,000 after purchasing an additional 573 shares during the last quarter. Osbon Capital Management LLC acquired a new position in SEA in the fourth quarter worth about $175,000. Finally, HB Wealth Management LLC acquired a new position in SEA in the second quarter worth about $203,000. 59.53% of the stock is currently owned by institutional investors.

About SEA

Sea Limited NYSE: SE is a Singapore-based global consumer internet company that develops and operates digital services across entertainment, e-commerce and financial technology. Founded in 2009 as Garena, the company adopted the Sea name in 2017 as it expanded beyond online gaming.

Garena, Sea's digital entertainment business, publishes and develops online games, including the widely distributed mobile battle royale title Free Fire. Garena also provides an online platform for game-related content and community activities.

Shopee operates an e-commerce marketplace that connects consumers, sellers and brands.

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