Sea Limited [SE] Stock trading around $349.35 per share: What’s Next?

Sea Limited [NYSE: SE] price surged by 7.53 percent to reach at $24.45. The company report on September 10, 2021 that Sea Limited Announces Pricing of Offerings of ADSs and Convertible Notes.

Sea Limited (NYSE: SE) (“Sea” or the “Company”) announced that it priced its registered underwritten public offering (the “ADS Offering”) of 11,000,000 American Depositary Shares (“ADSs”), each representing one Class A ordinary share of the Company, at a price of US$318.00 per ADS, and its registered underwritten public offering (the “Notes Offering” and, together with the ADS Offering, the “Offerings”) of US$2,500,000,000 aggregate principal amount of its 0.25% convertible senior notes due 2026 (the “Notes”). In addition, the Company has granted the underwriters in the ADS Offering a 30-day option to purchase up to an additional 1,650,000 ADSs on the same terms and conditions, and has granted the underwriters in the Notes Offering a 30-day option to purchase up to an additional US$375,000,000 aggregate principal amount of Notes on the same terms and conditions to cover over-allotments. All of the ADSs to be sold in the ADS Offering are being offered by Sea. Subject to customary conditions, the Offerings are expected to close on September 14, 2021.

The Notes will be senior, unsecured obligations of the Company, bearing interest at a rate of 0.25% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The Notes will mature on September 15, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to the close of business on the business day immediately preceding June 15, 2026, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Thereafter, the Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, ADSs (plus cash in lieu of a fractional ADS), or a combination of cash and ADSs, at its election. The initial conversion rate of the Notes is 2.0964 ADSs per US$1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately US$477.01 per ADS and represents a conversion premium of approximately 50.0% above the public offering price per ADS in the ADS Offering, which is US$318.00). The conversion rate is subject to adjustment upon the occurrence of certain events. On or after September 15, 2024, the Company may redeem for cash all or any part of the Notes if the last reported sale price of the ADSs has been at least 130% of the conversion price for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date (an “Optional Redemption”). The Company may also redeem for cash all but not part of the Notes at any time if less than US$250,000,000 aggregate principal amount of Notes remains outstanding at such time (a “Cleanup Redemption”). The Company may also redeem all but not part of the Notes in the event of certain changes in tax laws (a “Tax Redemption”). In addition, subject to certain conditions and a limited exception, holders of the Notes may require the Company to repurchase all or part of their Notes for cash in the event of certain events that constitute a fundamental change. In connection with certain corporate events or if the Company issues a notice of Optional Redemption, Cleanup Redemption or Tax Redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their Notes in connection with such corporate event or such Optional Redemption, Cleanup Redemption or Tax Redemption.

A sum of 5873483 shares traded at recent session while its average daily volume was at 3.34M shares. Sea Limited shares reached a high of $351.6799 and dropped to a low of $324.495 until finishing in the latest session at $349.35.

The one-year SE stock forecast points to a potential upside of 1.53. The average equity rating for SE stock is currently 1.70, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Sea Limited [SE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SE shares is $354.79 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SE stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

DZ Bank have made an estimate for Sea Limited shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 29, 2021. While these analysts kept the previous recommendation, Stifel raised their target price from $325 to $400. The new note on the price target was released on September 15, 2021, representing the official price target for Sea Limited stock. Previously, the target price had yet another raise to $352, while CLSA analysts kept a Outperform rating on SE stock.

The Average True Range (ATR) for Sea Limited is set at 13.54, with the Price to Sales ratio for SE stock in the period of the last 12 months amounting to 28.36. The Price to Book ratio for the last quarter was 51.38, with the Price to Cash per share for the same quarter was set at 10.13.

SE Stock Performance Analysis:

Sea Limited [SE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.79. With this latest performance, SE shares gained by 4.74% in over the last four-week period, additionally plugging by 39.68% over the last 6 months – not to mention a rise of 102.64% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SE stock in for the last two-week period is set at 62.59, with the RSI for the last a single of trading hit 67.97, and the three-weeks RSI is set at 60.16 for Sea Limited [SE]. The present Moving Average for the last 50 days of trading for this stock 322.98, while it was recorded at 327.57 for the last single week of trading, and 266.46 for the last 200 days.

Insight into Sea Limited Fundamentals:

Sea Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

Sea Limited [SE] Insider Position Details

There are presently around $94,747 million, or 69.80% of SE stock, in the hands of institutional investors. The top three institutional holders of SE stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 32,370,816, which is approximately -0.075% of the company’s market cap and around 4.96% of the total institutional ownership; SANDS CAPITAL MANAGEMENT, LLC, holding 23,092,493 shares of the stock with an approximate value of $8.07 billion in SE stocks shares; and CAPITAL WORLD INVESTORS, currently with $6.73 billion in SE stock with ownership of nearly -3.163% of the company’s market capitalization.

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411 institutional holders increased their position in Sea Limited [NYSE:SE] by around 23,724,700 shares. Additionally, 284 investors decreased positions by around 21,395,369 shares, while 93 investors held positions by with 226,088,374 shares. The mentioned changes placed institutional holdings at 271,208,443 shares, according to the latest SEC report filing. SE stock had 153 new institutional investments in for a total of 3,837,076 shares, while 56 institutional investors sold positions of 3,620,396 shares during the same period.

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