Amazon.com (NASDAQ:AMZN) Shares Down 1.1% - Should You Sell?

Key Points

• Amazon.com (NASDAQ:AMZN) shares dropped by 1.1% to $221.31, with trading volume significantly down at 10.7 million shares, compared to an average of 44.5 million shares.
• Despite the decline, analysts remain optimistic, with 46 buy ratings and a consensus price target of $262.87; notable upgrades from firms like Moffett Nathanson and BMO Capital Markets indicate a strong sentiment about Amazon's future.
• Recent insider trading saw Jeffrey P. Bezos sell over 2.6 million shares, though insiders still retain approximately 9.7% of the company's stock.

Amazon.com, Inc. (NASDAQ:AMZN)'s share price fell 1.1% during trading on Thursday . The stock traded as low as $220.54 and last traded at $221.31. 10,722,455 shares were traded during mid-day trading, a decline of 76% from the average session volume of 44,451,277 shares. The stock had previously closed at $223.81.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on AMZN shares. Moffett Nathanson boosted their price target on Amazon.com from $250.00 to $253.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. BNP Paribas raised Amazon.com from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 27th. Zacks Research downgraded Amazon.com from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. BMO Capital Markets boosted their price target on Amazon.com from $270.00 to $280.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Finally, JMP Securities restated a "market outperform" rating and set a $285.00 price objective on shares of Amazon.com in a research note on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Amazon.com currently has a consensus rating of "Buy" and an average target price of $262.87.

Amazon.com Price Performance

The company has a market capitalization of $2.36 trillion, a P/E ratio of 33.74, a price-to-earnings-growth ratio of 1.54 and a beta of 1.31. The company has a fifty day moving average price of $222.12 and a 200 day moving average price of $208.46. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 0.81.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The e-commerce giant reported $1.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.37. The business had revenue of $167.70 billion during the quarter, compared to analyst estimates of $161.80 billion. Amazon.com had a return on equity of 23.84% and a net margin of 10.54%.The business's revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.26 EPS. Amazon.com has set its Q3 2025 guidance at EPS. On average, sell-side analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jeffrey P. Bezos sold 2,643,142 shares of the company's stock in a transaction on Thursday, July 24th. The shares were sold at an average price of $230.43, for a total value of $609,059,211.06. Following the transaction, the insider directly owned 883,779,901 shares of the company's stock, valued at approximately $203,649,402,587.43. This represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Douglas J. Herrington sold 4,784 shares of the company's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $232.32, for a total transaction of $1,111,418.88. Following the completion of the transaction, the chief executive officer directly owned 510,255 shares in the company, valued at $118,542,441.60. This trade represents a 0.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 25,012,284 shares of company stock valued at $5,656,976,492 in the last quarter. Insiders own 9.70% of the company's stock.

Institutional Investors Weigh In On Amazon.com

Several hedge funds have recently made changes to their positions in AMZN. Prudent Man Investment Management Inc. bought a new stake in Amazon.com in the 4th quarter valued at $27,000. Carderock Capital Management Inc. bought a new stake in Amazon.com in the 2nd quarter valued at $27,000. LSV Asset Management bought a new stake in Amazon.com in the 4th quarter valued at $35,000. Perritt Capital Management Inc lifted its position in Amazon.com by 72.7% in the 4th quarter. Perritt Capital Management Inc now owns 190 shares of the e-commerce giant's stock valued at $42,000 after acquiring an additional 80 shares in the last quarter. Finally, Cooksen Wealth LLC bought a new stake in Amazon.com in the 1st quarter valued at $36,000. Institutional investors own 72.20% of the company's stock.

About Amazon.com

Amazon.com, Inc engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content.

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