SEA (NYSE:SE) Shares Up 7.1% – Still a Buy?

Sea Limited Sponsored ADR (NYSE:SE)’s share price traded up 7.1% during mid-day trading on Tuesday. The company traded as high as $83.69 and last traded at $83.4620. Approximately 4,143,243 shares changed hands during trading, a decline of 19% from the average session volume of 5,091,975 shares. The stock had previously closed at $77.96.

Key SEA News

These are some of the SE news items that stood out recently:

• Positive Sentiment: Third-quarter revenue climbed 43.4% year over year to $8.58 billion, topping estimates, while net income rose 34% to $502.5 million. The board also authorized an additional $1 billion share repurchase. Sea Limited Q3 results
• Negative Sentiment: EPS of $0.78 missed the cited analyst consensus of $0.99, helping overshadow the revenue beat and contributing to a negative market reaction after results. Sea Q3 results and market reaction
• Negative Sentiment: Monee’s credit-loss provisions reportedly rose 82.3%, raising concerns about lending risk and whether growth can translate into stronger, sustainable margins. Sea growth and credit-loss provisions

Analyst Upgrades and Downgrades

SE has been the subject of a number of analyst reports. New Street Research downgraded shares of SEA from a “buy” rating to a “neutral” rating and set a $70.00 price target for the company. in a report on Monday, October 26th. Benchmark boosted their price objective on SEA from $140.00 to $175.00 and gave the stock a “buy” rating in a research note on Wednesday, August 12th. Barclays upped their price objective on SEA from $122.00 to $156.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Morgan Stanley restated an “overweight” rating and set a $153.00 price objective on shares of SEA in a research report on Thursday, August 13th. Finally, Jefferies Financial Group lowered their price objective on SEA from $164.00 to $142.00 and set a “buy” rating for the company in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $133.36.

SEA Price Performance

The company has a quick ratio of 1.48, a current ratio of 1.49 and a debt-to-equity ratio of 0.07. The firm’s 50 day simple moving average is $92.51 and its 200 day simple moving average is $97.12. The company has a market capitalization of $45.10 billion, a PE ratio of 26.55, a price-to-earnings-growth ratio of 0.79 and a beta of 1.58.

SEA (NYSE:SE) last announced its earnings results on Tuesday, November 10th. The Internet company based in Singapore reported $0.78 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.21). The firm had revenue of $8.58 billion during the quarter, compared to analysts’ expectations of $8.08 billion. SEA had a net margin of 5.89% and a return on equity of 13.85%. The company’s revenue was up 43.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.59 EPS. As a group, research analysts anticipate that Sea Limited Sponsored ADR will post 2.88 EPS for the current fiscal year.

Insider Activity

In other SEA news, insider Jingye Chen sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $108.87, for a total value of $3,266,100.00. Following the completion of the sale, the insider owned 270,000 shares of the company’s stock, valued at $29,394,900. This trade represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Xiaodong Li sold 57,690 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $122.28, for a total transaction of $7,054,333.20. Following the completion of the sale, the chief executive officer directly owned 1,232,992 shares of the company’s stock, valued at approximately $150,770,261.76. The trade was a 4.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 808,306 shares of company stock valued at $89,099,509. 0.22% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Provenance Wealth Advisors LLC lifted its position in shares of SEA by 1,511.1% during the third quarter. Provenance Wealth Advisors LLC now owns 290 shares of the Internet company based in Singapore’s stock worth $28,000 after purchasing an additional 272 shares during the last quarter. Grove Bank & Trust increased its holdings in shares of SEA by 53.9% in the 3rd quarter. Grove Bank & Trust now owns 614 shares of the Internet company based in Singapore’s stock valued at $60,000 after acquiring an additional 215 shares during the period. 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 purchasing an additional 174 shares during the last quarter. Allworth Financial LP raised its stake in shares of SEA by 28.5% during the 3rd quarter. Allworth Financial LP now owns 1,168 shares of the Internet company based in Singapore’s stock worth $112,000 after acquiring an additional 259 shares in the last quarter. Finally, Independence Bank of Kentucky increased 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 in the last quarter. Institutional investors own 59.53% of the company’s stock.

SEA Company Profile

Sea Limited is a Singapore-based technology company operating digital entertainment, e-commerce and digital financial services businesses. Founded in 2009 as Garena, the company adopted the name Sea Limited in 2017. Its digital entertainment business, Garena, publishes and develops online games and also provides a platform for users to access games and connect with other players. Shopee, Sea’s e-commerce platform, serves consumers and merchants in Southeast Asia and other markets, including Taiwan and parts of Latin America.