Sea (NYSE: SE) insider sells 40,000 shares in preplanned trade

What happened

Sea Ltd (NYSE: SE) said President of Garena Feng Zhao sold 40,000 Class A ordinary shares on 2026-10-01 for about $3.80 million. The shares traded at prices from $94.43 to $96.04 a share. The form shows three sale lots, with weighted average prices of $94.43, $95.2 and $96.04. The filing was filed on 2026-10-05. After the sale, Zhao held 93,580 shares. The filing also shows the shares were held indirectly through a BVI entity.

Key numbers

Metric	Latest	Change	Source
Shares sold	40,000 shares		SEC Form 4
Sale price range	$94.43 to $96.04 a share		SEC Form 4
Total proceeds	about $3.80 million		SEC Form 4
Shares held afterward	93,580 shares		SEC Form 4
Sale as share of pre-sale holding	29.9%		Calculated from SEC Form 4

Read more: Sea (SE) stock analysis and investment case

Why it matters

This is an insider-trading update, not an operating report, so it mainly shows how a senior Garena executive changed exposure. OptimistFi's case is mixed because the filing shows a senior Garena executive sold shares, but the trade was preplanned. OptimistFi's calculation shows the 40,000 shares were about 29.9% of the 133,580-share position before the trade, so the sale was a material reduction in Zhao's stake.

Because the transaction moved nearly a third of the pre-sale holding, it is material at the personal level even if it was prearranged. That matters because the sale still leaves Zhao with 93,580 shares, so the executive remains exposed to the stock after the transaction. The lot-by-lot prices give investors a clean execution range to compare with later filings.

The counterpoint is that the filing says the shares were sold under a Rule 10b5-1 trading plan adopted by a BVI entity controlled by Zhao on June 29, 2026. That limits how much investors should read into the transaction by itself, because the plan date shows the trades were arranged in advance. The form therefore changes the size of Zhao's stake more than it changes any view of Sea's current operating performance.

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What's next

The filing's only dated setup detail is the June 29, 2026 Rule 10b5-1 adoption by the BVI entity controlled by Zhao. Any later sale would come against that 93,580-share baseline, and later Form 4 filings would show whether the stake changes further. Until then, this filing is mainly a snapshot of a prearranged reduction in one insider's indirect holding.

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