SEA (NYSE:SE) Shares Gap Up - Still a Buy?

Key Points

• Sea Limited shares gapped up ahead of trading after the company posted a strong first-quarter report, opening at $94.71 versus the prior close of $84.87.
• The company reported revenue of $7.1 billion, well above analyst expectations, and delivered net income of $438.2 million with adjusted EBITDA of about $1.0 billion, showing solid operating momentum.
• Despite the strong top-line results, EPS missed estimates at $0.67 versus the $0.77 consensus, which may keep investor focus on profitability execution going forward.

Sea Limited Sponsored ADR (NYSE:SE - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $84.87, but opened at $94.71. SEA shares last traded at $94.1130, with a volume of 3,654,264 shares changing hands.

SEA News Summary

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Sea reported first-quarter revenue of $7.1 billion, topping analyst estimates and showing continued rapid growth across its business. Sea Limited Reports First Quarter 2026 Results
• Positive Sentiment: The company also posted net income of $438.2 million and adjusted EBITDA of about $1.0 billion, reinforcing that growth is still being backed by solid operating performance. Sea Limited Reports First Quarter 2026 Results
• Neutral Sentiment: Sea’s earnings per share missed estimates at $0.67 versus the $0.77 consensus, which tempers an otherwise strong report. Sea NYSE: SE Delivers Strong Q1 CY2026 Numbers, Stock Soars
• Neutral Sentiment: Several insider sales were disclosed, including transactions by COO Gang Ye and insiders Jingye Chen and Yanjun Wang, but the sales were relatively small compared with their remaining holdings.
• Negative Sentiment: The EPS miss may limit upside if investors become more focused on profitability execution rather than just top-line growth. Sea Limited shares rise on strong revenue beat

Wall Street Analyst Weigh In

SE has been the topic of several research reports. Barclays decreased their target price on SEA from $226.00 to $120.00 and set an "overweight" rating on the stock in a research report on Thursday, March 5th. Sanford C. Bernstein decreased their price objective on SEA from $170.00 to $150.00 and set an "outperform" rating on the stock in a report on Wednesday, March 4th. Jefferies Financial Group reissued a "buy" rating and set a $150.00 target price on shares of SEA in a report on Tuesday, March 3rd. Bank of America restated a "buy" rating and issued a $125.00 price target on shares of SEA in a research note on Monday, March 9th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of SEA in a research report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $161.66.

SEA Price Performance

The firm has a market cap of $57.79 billion, a P/E ratio of 37.50, a PEG ratio of 0.89 and a beta of 1.57. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.58 and a quick ratio of 1.57. The company's 50-day moving average is $86.21 and its two-hundred day moving average is $114.63.

SEA (NYSE:SE - Get Free Report) last issued its earnings results on Tuesday, May 12th. The Internet company based in Singapore reported $0.67 EPS for the quarter, missing the consensus estimate of $0.77 by ($0.10). The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $6.46 billion. SEA had a net margin of 6.93% and a return on equity of 15.20%. SEA's quarterly revenue was up 46.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.65 earnings per share. Sell-side analysts anticipate that Sea Limited Sponsored ADR will post 3.39 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Yanjun Wang sold 800 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $83.74, for a total transaction of $66,992.00. Following the completion of the sale, the insider directly owned 18,000 shares in the company, valued at $1,507,320. This represents a 4.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Jingye Chen sold 800 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $83.74, for a total value of $66,992.00. Following the completion of the sale, the insider directly owned 210,400 shares in the company, valued at $17,618,896. This trade represents a 0.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,568,052 shares of company stock worth $137,823,797 over the last three months. Insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Rothschild Investment LLC boosted its stake in shares of SEA by 114.0% in the 3rd quarter. Rothschild Investment LLC now owns 199 shares of the Internet company based in Singapore's stock valued at $36,000 after purchasing an additional 106 shares in the last quarter. Zions Bancorporation National Association UT increased its holdings in SEA by 539.6% in 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 purchasing an additional 259 shares in the last quarter. Holos Integrated Wealth LLC bought a new position in SEA in the fourth quarter valued at about $44,000. Cornerstone Planning Group LLC raised its position in SEA by 26.5% in 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 purchasing an additional 174 shares during the last quarter. Finally, Cullen Frost Bankers Inc. boosted its stake in shares of SEA by 41.9% during the third quarter. Cullen Frost Bankers Inc. now owns 559 shares of the Internet company based in Singapore's stock valued at $100,000 after purchasing an additional 165 shares in the last quarter. Institutional investors own 59.53% of the company's stock.

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.

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