SEA (NYSE:SE) Shares Gap Up – Here’s Why

Sea Limited Sponsored ADR (NYSE:SE) shares gapped up prior to trading on Tuesday . The stock had previously closed at $114.80, but opened at $127.87. SEA shares last traded at $128.3110, with a volume of 4,250,292 shares.

More SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Revenue significantly beat expectations: Second-quarter GAAP revenue reached $7.8 billion, up 48.1% year over year. Gross profit rose 47.3% to $3.5 billion, while net income increased 10.6% to $458.1 million and adjusted EBITDA climbed 10.6% to $917.2 million. Sea Limited Reports Second Quarter 2026 Results
• Positive Sentiment: Strong revenue growth outweighed the profit shortfall: Sea reported quarterly EPS of $0.70, below the $0.86 consensus estimate, but revenue exceeded expectations. The favorable market reaction suggests investors are prioritizing the company’s accelerating top-line growth and operating momentum. Sea Limited misses EPS but revenue beat pushes shares higher
• Positive Sentiment: OpenAI partnership may strengthen Shopee: Sea’s artificial-intelligence initiatives could improve product discovery, seller tools and automation, potentially supporting customer engagement and efficiency over time. Sea’s AI Push With OpenAI Could Deepen Shopee’s Competitive Edge Now
• Neutral Sentiment: Analysts note that growth is broad-based across e-commerce, fintech and gaming, but Sea’s recent rally has lifted valuation while increased investment and credit provisions may limit near-term upside. Is Sea Stock a Buy Now as Growth Accelerates but Margins Tighten?
• Negative Sentiment: EPS missed expectations: Reported earnings of $0.70 per share were $0.16 below consensus, highlighting pressure on profitability despite sharply higher revenue.
• Negative Sentiment: Insiders sold shares: COO Gang Ye sold 40,000 shares across two transactions, while Yanjun Wang sold 3,000 shares. The sales were disclosed in SEC filings and modestly reduced their holdings, potentially adding a cautionary signal for investors.

Analyst Ratings Changes

Several research firms have recently issued reports on SE. Barclays lifted their target price on shares of SEA from $120.00 to $122.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. JPMorgan Chase & Co. cut their price target on SEA from $168.00 to $163.00 and set an “overweight” rating on the stock in a research note on Thursday, May 14th. Zacks Research raised SEA from a “strong sell” rating to a “hold” rating in a research report on Monday, June 1st. TD Cowen lowered their price objective on SEA from $108.00 to $100.00 and set a “hold” rating for the company in a research note on Tuesday, August 4th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of SEA in a report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $154.81.

SEA Stock Up 14.2%

The company has a market cap of $80.12 billion, a P/E ratio of 51.41, a P/E/G ratio of 1.09 and a beta of 1.54. The company’s 50-day moving average is $99.67 and its two-hundred day moving average is $96.63. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.58 and a quick ratio of 1.56.

SEA (NYSE:SE) last released its quarterly earnings data 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). SEA had a net margin of 6.41% and a return on equity of 14.12%. During the same period in the prior year, the firm earned $0.65 earnings per share. The business’s quarterly revenue was up 48.3% on a year-over-year basis. As a group, equities analysts predict that Sea Limited Sponsored ADR will post 3.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Gang Ye sold 20,000 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $114.59, for a total value of $2,291,800.00. Following the completion of the transaction, the chief operating officer owned 460,000 shares in the company, valued at $52,711,400. The trade was a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Yanjun Wang sold 1,500 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $114.58, for a total value of $171,870.00. Following the transaction, the insider directly owned 10,000 shares in the company, valued at approximately $1,145,800. The trade was a 13.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 541,100 shares of company stock valued at $54,277,980. Corporate insiders own 0.22% of the company’s stock.

Hedge Funds Weigh In On SEA

Several hedge funds and other institutional investors have recently bought and sold shares of SE. 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 valued at $39,000 after acquiring an additional 259 shares during the last quarter. Cornerstone Planning Group LLC grew its stake in shares of 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 worth $70,000 after acquiring an additional 174 shares during the period. Cullen Frost Bankers Inc. raised its holdings 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 valued at $144,000 after purchasing an additional 573 shares during the last quarter. Osbon Capital Management LLC purchased a new position in shares of SEA during the fourth quarter valued at approximately $175,000. Finally, EverSource Wealth Advisors LLC lifted its position 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 valued at $206,000 after purchasing an additional 751 shares during the period. 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.