Short Interest in Sea Limited Sponsored ADR (NYSE:SE) Decreases By 36.5%

Sea Limited Sponsored ADR (NYSE:SE) saw a significant drop in short interest during the month of July. As of July 31st, there was short interest totaling 12,274,187 shares, a drop of 36.5% from the July 15th total of 19,320,948 shares. Based on an average trading volume of 4,244,739 shares, the days-to-cover ratio is presently 2.9 days. Currently, 2.0% of the company’s shares are short sold.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SE. TD Cowen reissued a “hold” rating on shares of SEA in a research note on Monday. Jefferies Financial Group reaffirmed a “buy” rating on shares of SEA in a research report on Tuesday, May 12th. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a research report on Monday, July 20th. Benchmark boosted their price objective on SEA from $140.00 to $175.00 and gave the company a “buy” rating in a research note on Wednesday, August 12th. Finally, Zacks Research cut SEA from a “hold” rating to a “strong sell” rating in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $151.90.

Trending Headlines about SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Howard Marks’ Oaktree Capital disclosed a new Sea Limited position worth approximately $60.9 million. The investment may support investor confidence in Sea’s long-term growth potential after the stock’s recent decline. Howard Marks article
• Positive Sentiment: Sea’s latest quarterly revenue increased 48.3% year over year to $7.79 billion, exceeding analysts’ $7.12 billion estimate. The company’s digital entertainment, e-commerce and financial-services businesses continue to provide significant growth momentum.
• Neutral Sentiment: Analysts maintain a generally favorable view, with a “Moderate Buy” consensus and an average price target of $151.90. However, the stock’s valuation remains elevated at roughly 45 times earnings, leaving shares sensitive to earnings execution and growth expectations.
• Negative Sentiment: Sea reported quarterly earnings of $0.70 per share, missing the $0.86 consensus estimate. The earnings shortfall may be weighing on the stock despite the strong revenue performance.
• Negative Sentiment: Several senior executives sold shares recently: CEO Xiaodong Li sold approximately $2.38 million, COO Gang Ye sold $3.72 million, President Zhimin Feng sold $1.86 million, and other insiders sold additional shares. The broad-based selling, totaling more than $8 million in the reported transactions, can raise concerns about near-term valuation or insider expectations. Gang Ye insider sale Xiaodong Li insider sale

SEA Stock Down 2.7%

Shares of SEA stock traded down $3.28 during trading on Tuesday, reaching $116.17. 4,316,723 shares of the company traded hands, compared to its average volume of 5,004,346. The firm has a market capitalization of $70.99 billion, a PE ratio of 44.85, a P/E/G ratio of 1.10 and a beta of 1.54. SEA has a 1-year low of $77.05 and a 1-year high of $199.30. The company has a 50 day moving average price of $103.23 and a 200-day moving average price of $96.65. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.49 and a quick ratio of 1.48.

SEA (NYSE:SE) last posted its quarterly earnings results on Tuesday, August 11th. The Internet company based in Singapore reported $0.70 EPS for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.16). SEA had a return on equity of 13.54% and a net margin of 5.98%.The company had revenue of $7.79 billion during the quarter, compared to analyst estimates of $7.12 billion. During the same quarter in the previous year, the business posted $0.65 earnings per share. The company’s revenue for the quarter was up 48.3% compared to the same quarter last year. As a group, equities research analysts expect that SEA will post 3.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Gang Ye sold 30,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $129.35, for a total value of $3,880,500.00. Following the sale, the chief operating officer directly owned 430,000 shares in the company, valued at $55,620,500. This represents a 6.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Xiaodong Li sold 1,057,650 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $129.80, for a total transaction of $137,282,970.00. Following the sale, the chief executive officer directly owned 288,450 shares of the company’s stock, valued at $37,440,810. This represents a 78.57% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,705,180 shares of company stock worth $206,179,409. 0.22% of the stock is owned by insiders.

Institutional Trading of SEA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Zions Bancorporation National Association UT boosted its holdings in SEA by 539.6% in the fourth quarter. Zions Bancorporation National Association UT now owns 307 shares of the Internet company based in Singapore’s stock worth $39,000 after acquiring an additional 259 shares in the last quarter. Cornerstone Planning Group LLC grew its stake 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 acquiring an additional 174 shares during the period. Cullen Frost Bankers Inc. increased 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 acquiring an additional 573 shares in the last quarter. Osbon Capital Management LLC acquired a new position in shares of SEA during the fourth quarter worth approximately $175,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of 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 worth $206,000 after purchasing an additional 751 shares during the period. 59.53% of the stock is owned by institutional investors.

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.