SEA (NYSE:SE) Shares Gap Up Following Strong Earnings

Sea Ltd (NYSE:SE)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $37.86, but opened at $36.76. SEA shares last traded at $35.88, with a volume of 6,089,998 shares traded.

The Internet company based in Singapore reported ($0.41) EPS for the quarter, topping analysts’ consensus estimates of ($0.64) by $0.23. SEA had a negative return on equity of 158.33% and a negative net margin of 114.88%. The company had revenue of $763.30 million during the quarter, compared to analyst estimates of $700.71 million. During the same period in the previous year, the company earned ($2.03) earnings per share. The company’s quarterly revenue was up 214.4% compared to the same quarter last year.

A number of research analysts have recently commented on SE shares. Citigroup set a $38.00 price target on SEA and gave the stock a “buy” rating in a report on Wednesday, August 21st. Credit Suisse Group set a $44.00 price target on SEA and gave the stock a “buy” rating in a report on Wednesday, August 21st. ValuEngine lowered SEA from a “buy” rating to a “hold” rating in a report on Wednesday, October 2nd. Piper Jaffray Companies upped their price target on SEA from $49.00 to $54.00 and gave the stock an “overweight” rating in a report on Tuesday. Finally, Goldman Sachs Group upgraded SEA from a “neutral” rating to a “buy” rating in a report on Tuesday, August 13th. Two investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $40.50.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Aperio Group LLC increased its position in shares of SEA by 4.2% during the second quarter. Aperio Group LLC now owns 9,864 shares of the Internet company based in Singapore’s stock valued at $328,000 after purchasing an additional 397 shares during the period. Tower Research Capital LLC TRC increased its position in shares of SEA by 8.6% during the third quarter. Tower Research Capital LLC TRC now owns 11,801 shares of the Internet company based in Singapore’s stock valued at $365,000 after purchasing an additional 937 shares during the period. FinTrust Capital Advisors LLC bought a new stake in shares of SEA during the third quarter valued at approximately $31,000. Pacer Advisors Inc. bought a new stake in shares of SEA during the third quarter valued at approximately $33,000. Finally, HighTower Advisors LLC increased its position in shares of SEA by 11.2% during the second quarter. HighTower Advisors LLC now owns 11,891 shares of the Internet company based in Singapore’s stock valued at $392,000 after purchasing an additional 1,202 shares during the period. Institutional investors and hedge funds own 65.13% of the company’s stock.

The firm has a market capitalization of $10.37 billion, a P/E ratio of -11.89 and a beta of 1.32. The company has a quick ratio of 1.87, a current ratio of 1.89 and a debt-to-equity ratio of 0.40. The business has a 50-day moving average price of $29.78 and a 200-day moving average price of $31.15.

About SEA (NYSE:SE)

Sea Limited engages in the digital entertainment, e-commerce, and digital financial service businesses in Taiwan, Thailand, Vietnam, Indonesia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, and eSports operations; and access to other entertainment content, such as live streaming of online gameplay and social features.

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