On September 17, 2023, it was reported that ARK Investment Management LLC decreased its position in shares of Sea Limited (NYSE:SE) by 13.3% during the second quarter, according to a disclosure made with the Securities & Exchange Commission. The institutional investor sold 3,105 shares of the Singapore-based Internet company’s stock, leaving them with 20,195 shares. At the end of the quarter, these holdings were valued at $1,172,000.
The most recent quarterly earnings results for SEA were released on August 15th. The company reported earnings per share (EPS) of $0.54 for the quarter, falling short of the consensus estimate of $0.65 by ($0.11). SEA recorded a return on equity of 4.69% and a net margin of 2.17%. The company’s revenue for the quarter amounted to $3.10 billion compared to the estimated $3.26 billion. In the same period last year, SEA posted an EPS loss of ($1.35). Overall, the revenue grew by 5.2% compared to the previous year’s same quarter results. Analysts predict that Sea Limited will achieve an EPS of 1.26 for the current fiscal year.
Sea Limited operates in digital entertainment, e-commerce and digital financial service sectors across Southeast Asia, Latin America, rest of Asia and internationally. The company provides users access to mobile and PC online games through its Garena digital entertainment platform as well as engages in eSports operations.
While these recent developments indicate a decrease in ARK Investment Management LLC’s holdings and missed earnings expectations for SEA in their most recent quarter, it is important to consider various factors when evaluating investment decisions related to these stocks.
Growing Institutional Interest in SEA Limited: Analysis of Investor Activity and Analyst Ratings
September 17, 2023 – The recent activity of hedge funds and institutional investors in SEA Limited, an internet company based in Singapore, has piqued interest among financial analysts. Notable investors such as Glassman Wealth Services, RFP Financial Group LLC, Ronald Blue Trust Inc., First Horizon Advisors Inc., and Laffer Tengler Investments have all made significant moves in terms of buying and selling shares of SEA.
Glassman Wealth Services increased its stake in SEA by a staggering 120.1% during the first quarter, acquiring an additional 167 shares worth $26,000. Similarly, RFP Financial Group LLC witnessed a substantial growth of 1,304.2% in its SEA holdings during the same period. This increase amounted to owning 337 shares worth $29,000 after purchasing an additional 313 shares.
Ronald Blue Trust Inc. also displayed confidence in SEA by raising its holdings by 95.0% during the first quarter. The trust now owns 708 shares valued at $37,000 after adding an extra 345 shares to their portfolio. First Horizon Advisors Inc. joined the bandwagon by increasing its stake by 135.7% during the first quarter as well. They now own 495 SHARES valuing at $43,000 after acquiring an additional 285 shares.
Intriguingly, Laffer Tengler Investments joined the list of institutional investors who found themselves making strategic moves with respect to SEA stock. They acquired a new position worth approximately $66,000 during the first quarter of this year.
These investments highlight growing confidence among institutional investors towards SEA Limited’s potential for future growth and profitability on the market.
SEA’s stock under NYSE:SE opened at $39.28 on Friday (September 17th), reflecting recent market conditions that have caused a decline compared to its previous performance on the exchange.
Analysts have been closely monitoring certain factors such as the company’s current ratio of 1.75 and quick ratio of 1.73, which indicate its liquidity position. Additionally, SEA’s debt-to-equity ratio of 0.51 suggests a moderate level of leverage.
The market capitalization for SEA Limited currently stands at $22.18 billion, emphasizing its significance in the industry. Its price-earnings (PE) ratio is calculated at 100.72, which may raise questions regarding valuation among investors.
SEA Limited has experienced a fluctuation in its stock performance over the past year, with a low of $34.87 and a high of $88.84. However, it is important to note that this volatility can be attributed to various market factors beyond the control of the company itself.
The fifty-day moving average price for SEA’s stock is $49.94, while the two-hundred-day moving average price stands at $64.23 – numbers that reflect recent trends but should not be considered definitive indicators of future performance.
Despite these figures, it is crucial to consider the recommendations and evaluations provided by equities research analysts who have studied SEA’s potential within the market.
JPMorgan Chase & Co., for example, downgraded their rating on SEA from “overweight” to “neutral” and presented a $45.00 price target on the stock.
Wedbush reiterated an “outperform” rating on SEA shares with a target price of $48.00 as their evaluation reflects positive sentiment towards the company’s performance.
UBS Group upgraded its rating from “neutral” to “buy,” raising their price target from $66.00 to $86.00 – exemplifying growing confidence in SEA’s growth prospects and potential value appreciation.
However, Bank of America lowered its price estimate for SEA from $73.00 to $53.00 and gave it a “neutral” rating during recent evaluations.
Citigroup also adjusted their rating on SEA, moving from “buy” to “neutral.” They reduced their target price from $98.00 to $50.00.
It should be noted that nine investment analysts have offered a “hold” rating for SEA stock, while eight consider it as a “buy” option. Additionally, one analyst holds a strong buy perspective, highlighting the positive sentiment towards this particular company’s endeavors.
According to Bloomberg data, SEA currently has an average rating of “Moderate Buy,” with a consensus price target set at $72.50.
Overall, the recent movements of institutional investors and hedge funds in terms of buying and selling SEA shares have attracted attention from financial observers. The fluctuation in SEA’s stock prices, coupled with varying analyst ratings and projections, suggests an environment where further research and analysis may be required before making any investment decisions.