SEA (NYSE:SE) Insider Sells $3,123,900.00 in Stock

Key Points

• SEA insider Jingye Chen sold 30,000 shares at an average price of $104.13, generating $3.12 million and reducing their direct ownership by 20% to 120,000 shares. Chen has also made three other 30,000-share sales in September.
• SEA’s latest quarter delivered 48.3% year-over-year revenue growth to $7.79 billion, exceeding expectations, but EPS of $0.70 missed the $0.86 consensus estimate.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $149.40, while the stock trades near $104 and at roughly 40 times earnings; institutional investors own about 59.5% of shares.

Sea Limited Sponsored ADR (NYSE:SE - Get Free Report) insider Jingye Chen sold 30,000 shares of the company's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $104.13, for a total transaction of $3,123,900.00. Following the sale, the insider directly owned 120,000 shares of the company's stock, valued at approximately $12,495,600. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

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

• On Monday, September 14th, Jingye Chen sold 30,000 shares of SEA stock. The shares were 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 transaction of $3,225,300.00.
• On Wednesday, September 9th, Jingye Chen sold 30,000 shares of SEA stock. The stock was sold at an average price of $108.87, for a total transaction of $3,266,100.00.

SEA Trading Up 1.0%

NYSE:SE opened at $103.72 on Thursday. Sea Limited Sponsored ADR has a one year low of $77.05 and a one year high of $195.48. The business's 50-day simple moving average is $112.14 and its 200 day simple moving average is $96.93. 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 stock has a market cap of $63.38 billion, a price-to-earnings ratio of 40.05, a price-to-earnings-growth ratio of 1.03 and a beta of 1.51.

SEA (NYSE:SE - Get Free Report) last announced 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). The business had revenue of $7.79 billion during the quarter, compared to analyst estimates of $7.12 billion. SEA had a net margin of 5.98% and a return on equity of 13.54%. The business's revenue for the quarter was up 48.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.65 earnings per share. As a group, sell-side analysts predict that Sea Limited Sponsored ADR will post 2.91 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Cornerstone Planning Group LLC raised its holdings in shares of SEA by 26.5% during the first quarter. Cornerstone Planning Group LLC now owns 831 shares of the Internet company based in Singapore's stock valued at $70,000 after acquiring an additional 174 shares during the period. Independence Bank of Kentucky increased its stake in shares of SEA by 611.1% during the 2nd 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. raised its holdings 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 purchasing an additional 573 shares in the last quarter. Osbon Capital Management LLC acquired a new stake in shares of SEA in the 4th quarter valued at $175,000. Finally, HB Wealth Management LLC bought a new stake in SEA in the second quarter worth $203,000. Institutional investors own 59.53% of the company's stock.

Key SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Brokerages assign Sea a consensus “Moderate Buy” rating, with an average price target of $149.40—well above the recently cited share price near $103. Royal Bank of Canada upgraded the stock to “buy,” while Benchmark raised its target to $175.00. Sea Limited receives Moderate Buy rating
• Positive Sentiment: Institutional ownership stands at approximately 59.53%, and several investment firms increased their positions during the second quarter, including the National Pension Service and Baird Financial Group. This may provide a measure of institutional support for SE.
• Positive Sentiment: Sea’s most recent quarter showed strong revenue growth of 48.3% year over year to $7.79 billion, surpassing analyst expectations of $7.12 billion. The company also maintains a relatively conservative balance sheet, with debt-to-equity of just 0.07.
• Neutral Sentiment: Despite the growth outlook, Sea trades at an elevated valuation of roughly 40 times earnings. Analysts expect full-year earnings per share of about $2.91, leaving the stock vulnerable to volatility if growth or profitability disappoints.
• Negative Sentiment: Several insiders have recently sold shares. COO Gang Ye sold 20,000 shares for approximately $2.16 million, while Jingye Chen sold 60,000 shares across September 11 and 14 for about $6.46 million. Yanjun Wang also sold 1,500 shares for $162,480, reducing his ownership by 25.51%. The cluster of transactions may weigh on investor sentiment. SEA insider stock sales
• Negative Sentiment: Sea’s latest quarterly EPS of $0.70 missed the $0.86 consensus estimate, even though revenue exceeded expectations. The earnings shortfall is an important risk for a stock carrying a premium valuation.

Analyst Upgrades and Downgrades

SE has been the subject of several research reports. Arete Research set a $152.00 price target on shares of SEA and gave the company a "buy" rating in a report on Monday, September 7th. Sanford C. Bernstein reiterated an "outperform" rating on shares of SEA in a research report on Monday, July 20th. 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. Benchmark boosted their price target on shares of SEA from $140.00 to $175.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Finally, Barclays boosted their target price on shares of SEA from $122.00 to $156.00 and gave the company an "overweight" rating in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $149.40.

SEA Company Profile

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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