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

Sea Limited Sponsored ADR (NYSE:SE) shares gapped up before the market opened 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 traded.

SEA News Summary

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Revenue and business growth beat expectations: Sea reported second-quarter revenue of $7.79 billion, up 48.1% year over year and above the $7.12 billion consensus estimate. Gross profit rose 47.3% to $3.5 billion, while net income reached $458.1 million and adjusted EBITDA increased 10.6% to $917.2 million. Growth across Shopee, Monee and Garena supported the initial earnings-driven rally. Sea Limited Reports Second Quarter 2026 Results
• Positive Sentiment: Shopee profitability outlook improved: Management maintained its 25% gross merchandise value growth target and lifted its Shopee adjusted EBITDA expectation to approximately $1 billion, up from a previous floor of $881 million. The guidance suggests stronger monetization and improving e-commerce economics. SE Q2 Earnings Call Keeps Shopee Growth Outlook Intact
• Positive Sentiment: Analyst support increased: Benchmark raised its price target from $140 to $175 and reiterated a “buy” rating. The broader analyst consensus remains “Moderate Buy,” with an average target of $148.30.
• Positive Sentiment: Short interest declined: Short interest fell 36.5% to 12.3 million shares as of July 31, representing about 2% of shares outstanding. Reduced bearish positioning may provide technical support.
• Neutral Sentiment: Sea’s investments in AI, fulfillment, digital financial services and Garena could expand long-term growth and efficiency, though the financial impact remains prospective.
• Negative Sentiment: EPS missed estimates: Quarterly EPS was $0.70 versus the $0.86 analyst consensus. The miss suggests that operating costs, investment spending or credit provisions remain a concern despite rapid revenue growth. Sea Limited misses EPS but revenue beat pushes shares higher
• Negative Sentiment: Insider selling may reinforce profit-taking: COO Ye Gang sold 40,000 shares for approximately $4.6 million, while Yanjun Wang sold 1,500 shares in a recent transaction. Both insiders retained sizable positions, limiting the significance, but the sales add caution after the rally. Sea Limited COO Ye Gang Sells 40,000 Shares

Analyst Ratings Changes

Several research firms have recently weighed in on SE. Zacks Research raised SEA from a “strong sell” rating to a “hold” rating in a report on Monday, June 1st. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of SEA in a report on Monday, July 20th. Jefferies Financial Group reiterated a “buy” rating on shares of SEA in a research report on Tuesday, May 12th. Benchmark increased their price target on shares of SEA from $140.00 to $175.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Barclays restated an “overweight” rating and issued a $156.00 price objective on shares of SEA in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, SEA has a consensus rating of “Moderate Buy” and an average price target of $148.70.

SEA Trading Down 2.2%

The company has a fifty day moving average of $101.21 and a two-hundred day moving average of $96.74. The company has a quick ratio of 1.56, a current ratio of 1.58 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $78.59 billion, a price-to-earnings ratio of 49.66, a P/E/G ratio of 1.28 and a beta of 1.54.

SEA (NYSE:SE) last announced 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). The firm had revenue of $7.79 billion during the quarter, compared to analyst estimates of $7.12 billion. SEA had a net margin of 5.98% and a return on equity of 13.84%. The business’s quarterly revenue was up 48.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.65 earnings per share. On average, research analysts expect that Sea Limited Sponsored ADR will post 3.19 EPS for the current year.

Insider Transactions at SEA

In related news, COO Gang Ye sold 20,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $100.89, for a total value of $2,017,800.00. Following the completion of the sale, the chief operating officer owned 540,000 shares in the company, valued at $54,480,600. This trade represents a 3.57% 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 link. Insiders have sold 529,500 shares of company stock worth $53,180,480 over the last three months. Corporate insiders own 0.22% of the company’s stock.

Hedge Funds Weigh In On SEA

Large investors have recently modified their holdings of the business. Woodline Partners LP acquired a new stake in SEA in the first quarter valued at $4,028,000. BI Asset Management Fondsmaeglerselskab A S raised its stake in shares of SEA by 248.7% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 39,192 shares of the Internet company based in Singapore’s stock worth $6,268,000 after buying an additional 27,953 shares during the last quarter. Captrust Financial Advisors boosted its position in shares of SEA by 4.2% in the 2nd quarter. Captrust Financial Advisors now owns 27,188 shares of the Internet company based in Singapore’s stock worth $4,348,000 after buying an additional 1,084 shares in the last quarter. State of Tennessee Department of Treasury boosted its position in shares of SEA by 5.4% in the 2nd quarter. State of Tennessee Department of Treasury now owns 543,203 shares of the Internet company based in Singapore’s stock worth $86,880,000 after buying an additional 27,964 shares in the last quarter. Finally, Morse Asset Management Inc grew its stake in SEA by 21.1% in the 2nd quarter. Morse Asset Management Inc now owns 12,168 shares of the Internet company based in Singapore’s stock valued at $1,946,000 after acquiring an additional 2,121 shares during the last quarter. 59.53% of the stock is owned by hedge funds and other 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.