SEA (NYSE:SE) Cut to “Strong Sell” at Zacks Research

SEA (NYSE:SE) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Tuesday,Zacks.com reports.

SE has been the topic of several other reports. Morgan Stanley reissued an “overweight” rating on shares of SEA in a research report on Thursday. Sanford C. Bernstein reissued an “outperform” rating on shares of SEA in a report on Monday, July 20th. Barclays restated an “overweight” rating and set a $156.00 price objective on shares of SEA in a research report on Wednesday. Jefferies Financial Group reiterated a “buy” rating on shares of SEA in a research note on Tuesday, May 12th. Finally, TD Cowen lowered their target price on shares of SEA from $108.00 to $100.00 and set a “hold” rating for the company in a research note on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $148.70.

SEA Trading Down 2.2%

Shares of SE opened at $128.62 on Tuesday. The firm’s 50-day moving average price is $101.21 and its 200-day moving average price is $96.74. SEA has a 1-year low of $77.05 and a 1-year high of $199.30. The firm has a market capitalization of $78.59 billion, a price-to-earnings ratio of 49.66, a PEG ratio of 1.28 and a beta of 1.54. The company has a current ratio of 1.58, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05.

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 for the quarter, missing the consensus estimate of $0.86 by ($0.16). The company had revenue of $7.79 billion for the quarter, compared to analysts’ expectations of $7.12 billion. SEA had a net margin of 5.98% and a return on equity of 13.84%. The firm’s revenue for the quarter was up 48.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.65 earnings per share. Sell-side analysts anticipate that SEA will post 3.19 EPS for the current year.

Insider Activity

In other news, CEO Xiaodong Li sold 1,057,650 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $129.80, for a total value of $137,282,970.00. Following the transaction, the chief executive officer directly owned 288,450 shares of the company’s stock, valued at approximately $37,440,810. This represents a 78.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Tianyu Hou sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $128.28, for a total value of $641,400.00. Following the completion of the transaction, the chief financial officer owned 40,000 shares of the company’s stock, valued at approximately $5,131,200. The trade was a 11.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,640,650 shares of company stock valued at $197,385,910. 0.22% of the stock is owned by corporate insiders.

Institutional Trading of SEA

Institutional investors and hedge funds have recently modified their holdings of the stock. Zions Bancorporation National Association UT raised its position 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 valued at $39,000 after purchasing an additional 259 shares during the period. 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 valued at $70,000 after buying an additional 174 shares in the last quarter. Cullen Frost Bankers Inc. grew its stake in shares of SEA by 102.5% in 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 buying an additional 573 shares in the last quarter. Osbon Capital Management LLC purchased a new stake in shares of SEA in the 4th quarter valued at $175,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of SEA by 43.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,493 shares of the Internet company based in Singapore’s stock valued at $206,000 after buying an additional 751 shares during the period. Hedge funds and other institutional investors own 59.53% of the company’s stock.

Trending Headlines about SEA

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Revenue and business growth exceeded expectations: Q2 revenue rose 48.3% year over year to $7.79 billion, surpassing the $7.12 billion consensus estimate. Growth was supported by Shopee e-commerce, Monee digital financial services and Garena gaming. Sea Limited Reports Second Quarter 2026 Results
• Positive Sentiment: Shopee profitability outlook improved: Management maintained its 25% gross merchandise value growth target and raised its adjusted EBITDA expectation to approximately $1 billion, up from a prior floor of $881 million. This strengthens the case for sustained e-commerce growth with improving margins. SE Q2 Earnings Call Keeps Shopee Growth Outlook Intact
• Positive Sentiment: Analyst confidence increased: Benchmark raised its price target from $140 to $175 and retained a Buy rating, adding to Sea’s broadly favorable analyst outlook.
• Positive Sentiment: Bearish positioning declined: Short interest fell 36.5% to 12.3 million shares as of July 31, representing about 2% of outstanding shares and 2.9 days of average trading volume. The reduction may provide additional support for the recent advance.
• Negative Sentiment: EPS missed estimates: Adjusted earnings of $0.70 per share were below the $0.86 consensus forecast, indicating that expenses, investment spending or credit provisions remain a potential pressure on profitability.
• Negative Sentiment: Broad insider selling may weigh on sentiment: CEO Xiaodong Li sold 1.06 million shares worth approximately $137.3 million, reducing his position by 78.6%. The COO, CFO, president and other insiders also sold shares. While executives retained meaningful holdings, the transactions could encourage profit-taking after the earnings-driven rally. SEC filing for CEO share sale

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.