Sea Limited (NYSE: SE) Has Another Chance To Impress You


Sands Capital Management LLC recently announced the acquisition of new stake in Sea Limited (NYSE:SE). The institutional investor has increased its shareholding in the Communication Services company by 13.96% to 27.0 million shares with purchase of 3.31 million shares. This fresh investment now brings its stake to 8.42% valued currently at $3.3 billion. In addition, T. Rowe Price Associates, Inc. (I.. raised its holdings by 18.49 million to 23.55 million shares. And Capital Research & Management Co.. has lifted its position by 36.63% or 6.14 million shares – to 22.89 million shares.

With over 5.24 million Sea Limited (SE) shares trading Tuesday and a closing price of $161.80 on the day, the dollar volume was approximately $847.1 million. The shares have shown a positive weekly performance of 4.98% and its price on 09/01/20 gained nearly 5.88%. Currently, there are 466.50M common shares owned by the public and among those 80.62M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for SE have a consensus price objective of $169.39. The analysts have set the share’s price value over the next 12 months at a high of $195.00 and a low of $124.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sea Limited stock is 1.80 for the next 12 months. The average price target is 2.89% above its last price level and an upside to the estimated low will see the stock lose -30.48% over that period. But an upside of 17.03% will see the stock hit the forecast high price target while mean target price for the stock is $175.00.

The top 3 mutual fund holders in Sea Limited are American Funds EuroPacific Growth, Government Pension Fund – Global, and American Funds New World Fund. American Funds EuroPacific Growth owns 18.02 million shares of the company’s stock, all valued at over $2.2 billion. The company bought an additional 4.79 million shares recently to bring their total holdings to about 5.62% of the shares outstanding. Government Pension Fund – Global bought 3.26 million shares to see its total holdings expand to 4.76 million shares valued at over $581.18 million and representing 1.48% of the shares outstanding. American Funds New World Fund bought 0.7 million shares to bring its total holdings to over 4.49 million shares at a value of $548.83 million. American Funds New World Fund now owns shares totaling to 1.40% of the shares outstanding.

Shares of Sea Limited (NYSE: SE) opened at $156.70, up $3.89 from a prior closing price of $152.81. However, the script later closed the day at $161.80, up 5.88%. The company’s stock has a 5-day price change of 4.98% and 83.72% over the past three months. SE shares are trading 302.29% year to date (YTD), with the 12-month market performance up to 423.96% higher. It has a 12-month low price of $26.41 and touched a high of $163.14 over the same period. Currently, 5.24 million shares have been traded, compared to an average intraday trading volume of 4.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 14.44%, 29.34%, and 130.35% respectively.

Institutional ownership of Sea Limited (NYSE: SE) shares accounts for 73.80% of the company’s 466.50M shares outstanding. Mutual fund holders own 34.02%, while other institutional holders and individual stakeholders account for 40.99% and — respectively.

It has a market capitalization of $79.16B. The earnings-per-share (ttm) stands at -$2.52. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.07% over the week and 6.09% over the month.

Analysts forecast that Sea Limited (SE) will achieve an EPS of -$0.48 for the current quarter, -$0.61 for the next quarter and -$1.16 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.82 while analysts give the company a high EPS estimate of -$0.07. Comparatively, EPS for the current quarter was -$0.41 a year ago. Earnings per share for the fiscal year are expected to decrease by -18.00%, and 49.30% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate Sea Limited (SE) as a “Strong Buy” at a consensus score of 1.80. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 1 of the 16 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the SE, a number of firms have released research notes about the stock. CLSA stated their Buy rating for the stock in a research note on August 18, 2020, with the firm’s price target at $128-$178. Stephens coverage for the Sea Limited (SE) stock in a research note released on July 01, 2020 offered a Overweight rating with a price target of $130. CLSA was of a view on May 19, 2020 that the stock is Outperform, while Stifel gave the stock Hold rating on May 15, 2020, issuing a price target of $55- $62. CLSA on their part issued Underperform rating on May 13, 2020.


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