SEA (NYSE:SE) Sets New 52-Week Low Following Weak Earnings

Sea Limited Sponsored ADR (NYSE:SE)’s stock price reached a new 52-week low on Tuesday following a weaker than expected earnings announcement. The company traded as low as $77.05 and last traded at $79.2210, with a volume of 10814542 shares trading hands. The stock had previously closed at $105.21.

The Internet company based in Singapore reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.91 by ($0.28). SEA had a return on equity of 15.19% and a net margin of 6.80%.The business had revenue of $6.85 billion during the quarter, compared to the consensus estimate of $6.42 billion. During the same period in the prior year, the firm earned $0.39 earnings per share. The business’s revenue for the quarter was up 38.4% on a year-over-year basis.

SEA announced that its board has authorized a share repurchase plan on Monday, November 17th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the Internet company based in Singapore to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on SE shares. Phillip Securities raised SEA from a “hold” rating to a “strong-buy” rating in a research note on Sunday, November 16th. Wedbush decreased their target price on shares of SEA from $190.00 to $170.00 and set an “outperform” rating on the stock in a research note on Friday, December 19th. Zacks Research cut shares of SEA from a “hold” rating to a “strong sell” rating in a research report on Wednesday, December 10th. Barclays boosted their price objective on shares of SEA from $214.00 to $226.00 and gave the company an “overweight” rating in a research report on Thursday, November 13th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of SEA in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $189.84.

Hedge Funds Weigh In On SEA

Several hedge funds and other institutional investors have recently modified their holdings of SE. Lingohr Asset Management GmbH boosted its position in SEA by 219.4% during the 3rd quarter. Lingohr Asset Management GmbH now owns 12,700 shares of the Internet company based in Singapore’s stock valued at $2,270,000 after acquiring an additional 8,724 shares in the last quarter. Baird Financial Group Inc. lifted its stake in shares of SEA by 14.4% in the 2nd quarter. Baird Financial Group Inc. now owns 555,983 shares of the Internet company based in Singapore’s stock valued at $88,924,000 after purchasing an additional 70,070 shares during the period. Andra AP fonden boosted its position in shares of SEA by 7.0% during the third quarter. Andra AP fonden now owns 144,300 shares of the Internet company based in Singapore’s stock valued at $25,791,000 after purchasing an additional 9,400 shares in the last quarter. Handelsbanken Fonder AB grew its stake in SEA by 1.3% in the second quarter. Handelsbanken Fonder AB now owns 168,962 shares of the Internet company based in Singapore’s stock worth $27,024,000 after purchasing an additional 2,106 shares during the period. Finally, BNP Paribas grew its stake in SEA by 34.9% in the second quarter. BNP Paribas now owns 28,907 shares of the Internet company based in Singapore’s stock worth $4,624,000 after purchasing an additional 7,480 shares during the period. Hedge funds and other institutional investors own 59.53% of the company’s stock.

SEA Stock Performance

The company has a quick ratio of 1.42, a current ratio of 1.44 and a debt-to-equity ratio of 0.03. The firm has a market cap of $47.14 billion, a P/E ratio of 35.34 and a beta of 1.59. The business has a fifty day simple moving average of $120.09 and a 200-day simple moving average of $147.92.

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.