InvestingPro’s bearish call on SEG proves accurate with 42% price drop

Published 14/06/2025, 12:02
InvestingPro’s bearish call on SEG proves accurate with 42% price drop

When InvestingPro’s Fair Value models identified Seaport Entertainment Group Inc. (NYSE:SEG) as significantly overvalued in August 2024, the entertainment venue operator was trading at $30.62. Today, the stock trades at $19.56, representing a 42% decline that validates our analytical framework’s accuracy. For investors seeking similar opportunities, our Most overvalued list continues to identify potentially overvalued stocks.

Seaport Entertainment Group operates entertainment venues and dining establishments across major U.S. cities. When our models flagged the stock, the company was struggling with negative EBITDA of -$96.28 million and concerning EPS of -$154.16, despite revenue of $73.16 million. These fundamentals, combined with the stock’s elevated valuation metrics, triggered our overvaluation warning.

The subsequent performance has strongly validated InvestingPro’s analysis. The stock experienced significant volatility before ultimately declining to current levels, with monthly returns showing considerable instability. While revenue has improved to $90.50 million, the company continues to face profitability challenges with negative EBITDA of -$68.71 million, albeit showing some improvement.

Recent developments further support our initial thesis. The company recently launched a $175 million rights offering, indicating significant capital needs. While Seaport has announced expansion plans in dining and nightlife segments, Q1 2025 results showed a revenue decline, suggesting ongoing operational challenges.

InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, peer comparisons, and market-based metrics. This comprehensive framework helped identify SEG’s unsustainable valuation levels, with our models calculating a fair value significantly below the then-trading price of $30.62.

The success of this analysis demonstrates the power of data-driven investment decisions. Learn more about InvestingPro to access our Fair Value models, real-time alerts, and comprehensive financial analysis tools that can help you identify similar opportunities before the market catches up.

Latest comments

Ever wondered how to spot an undervalued gem?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.