Sands Capital Management LLC, an institutional investor based in the United States, has increased its holdings in Sea Limited (NYSE:SE) during the first quarter of this year. According to the company’s most recent disclosure with the Securities and Exchange Commission, Sands Capital Management now owns approximately 15,709,367 shares of Sea Limited’s stock. This represents a 4.5% increase from their previous holdings.
Sea Limited is an Internet company headquartered in Singapore that operates in various areas such as digital entertainment, e-commerce, and digital financial services. With its subsidiaries, Sea Limited serves customers in Southeast Asia, Latin America, rest of Asia, and other international markets. The company provides a digital entertainment platform called Garena which offers mobile and PC online games along with eSports operations.
The additional purchase of 673,845 shares by Sands Capital Management has made SEA account for approximately 4.5% of their investment portfolio. This makes it the fifth-largest holding for Sands Capital Management among its investments. At the end of the most recent quarter on September 3rd, 2023, Sands Capital Management’s ownership stake in SEA was valued at $1,359,646,000 or roughly 2.78% of SEA’s worth.
This move by Sands Capital Management indicates their continued confidence in Sea Limited as a worthwhile investment opportunity. As an institutional investor with considerable assets under management, Sands Capital Management’s decision to increase their holdings suggests that they see potential for growth and value in Sea Limited.
Sea Limited’s presence across multiple geographies and business sectors positions it favorably to capture opportunities arising from the increasing demand for digital entertainment and online commerce services. As more consumers turn to online platforms for entertainment and shopping purposes, companies like Sea Limited stand to benefit from this shift towards digital experiences.
It will be interesting to observe how Sea Limited further expands its footprint in Southeast Asia and other markets while also advancing its digital financial service offerings. As an emerging player in these sectors, Sea Limited has the potential to tap into new revenue streams and strengthen its position among its competitors.
In conclusion, Sands Capital Management’s recent increase in holdings of Sea Limited signifies their confidence in the company’s future prospects. With its diversified operations and strong market presence, Sea Limited is poised to capitalize on the growing demand for digital entertainment and e-commerce services. For investors seeking exposure to this sector, Sea Limited may present an attractive opportunity for long-term growth.
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Investor Positions and Analyst Ratings Highlight the Evolving Faith in Sea Limited
Sea Limited (NYSE: SE) has seen some significant changes in investor positions recently. Baillie Gifford & Co., a large investor, increased its stake in the Singapore-based internet company by 8.6% during the first quarter. This translates to a total of 21,991,406 shares valued at $1,903,356,000 after acquiring an additional 1,736,996 shares. Norges Bank also obtained a new position in SEA during the fourth quarter worth $237,386,000.
Another investor, Ward Ferry Management BVI Ltd, saw an increase in its stake by 8.8% during the same period. The company now owns 3,585,797 shares worth $186,569,000 after acquiring an additional 291,300 shares. EdgePoint Investment Group Inc., with an 8.7% growth in its position during the fourth quarter and Capital International Investors with a remarkable 92.1% growth in their position during the first quarter now own 3,546,253 shares (valued at $184512000) and acquired 3,418102 shares (valued at $409473000), respectively.
All of these developments contribute to approximately 72.05% of Sea Limited’s stock ownership now belonging to institutional investors and hedge funds.
Financial institutions have weighed in on Sea Limited as well with various price targets and ratings. Bank of America reduced their price target for SEA from $73 to $53 and labeled it as “neutral” in a research report on August 16th. Another financial institution weighing in was Bernstein Bank who minimized their price target to $90 from $100 also maintaining its “neutral” rating on July 11th.
KGI Securities also downgraded SEA from an “outperform” rating to a “neutral” rating while setting its price target at $42 on August 24th. On Monday, July 31st, UBS Group upgraded SEA from a “neutral” rating to a “buy” rating and increased the price target from $66 to $86. Lastly, Sanford C. Bernstein reduced the target price on shares of SEA from $90 to $70 and maintained an “outperform” rating on August 16th.
With nine analysts giving it a hold rating, eight issuing a buy rating, and one providing a strong buy, Bloomberg.com records show an average rating of “moderate buy” for Sea Limited’s stock. The consensus target price is set at $72.50.
On Friday, September 3rd, SE traded up $0.84 during trading hours reaching $38.47 with a trading volume of 5,227,844 shares compared to its average volume of 5,598,058. The company holds a quick ratio of 1.73 and a current ratio of 1.75 with a debt-to-equity ratio of 0.51. The fifty-day simple moving average stands at $54.01 and the two-hundred-day simple moving average lies at $66.13.
The internet company based in Singapore has seen some fluctuations between its one-year low at $34.87 and its one-year high at $88.84 with a market cap of approximately $21.73 billion and currently sporting a price-to-earnings (P/E) ratio of 96.49 alongside a beta (volatility measure) of 1.68.
SEA recently reported its quarterly earnings results on Tuesday, August 15th indicating an earnings per share (EPS) of $0.54 for the quarter which fell short of analysts’ consensus estimates by ($0.11). The company generated revenue amounting to $3.10 billion compared to analyst projections standing at approximately $3.26 billion for the same period.
Despite missing earnings estimates, SEA experienced a 5.2% increase in quarterly revenue on a year-over-year basis. In the prior year’s corresponding quarter, the company reported an EPS of ($1.35). Analysts anticipate Sea Limited to post an EPS of 1.26 for the current year.
Ascertaining investment positions and evaluating analyst reports alongside performance metrics can be a complex task for investors. The changing dynamics in investor positions highlight their ever-evolving faith in Sea Limited as well as the intrigue surrounding its future prospects.
