Amazon.com (NASDAQ:AMZN) Shares Down 1.8% - What's Next?

Key Points

• Amazon.com shares fell 1.8% during mid-day trading, reaching a low of $216.52 before closing at $217.95.
• Brokerages have mixed views on Amazon; while Royal Bank of Canada and Rosenblatt Securities have raised target prices and ratings, Zacks Research downgraded the stock from "strong-buy" to "hold."
• Insiders have been active in selling shares, with VP Shelley Reynolds and CEO Douglas J. Herrington selling sizable amounts, leading to total insider sales of over $630 million in recent months.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) dropped 1.8% during mid-day trading on Wednesday . The company traded as low as $216.52 and last traded at $217.95. Approximately 43,424,233 shares traded hands during mid-day trading, a decline of 2% from the average daily volume of 44,271,984 shares. The stock had previously closed at $222.03.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on AMZN. Royal Bank Of Canada raised their target price on shares of Amazon.com from $230.00 to $240.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Sanford C. Bernstein set a $235.00 target price on shares of Amazon.com and gave the company an "outperform" rating in a research note on Tuesday, July 1st. Zacks Research downgraded shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 19th. Rosenblatt Securities raised their target price on shares of Amazon.com from $288.00 to $297.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Wall Street Zen raised shares of Amazon.com from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $267.27.

Amazon.com Stock Down 1.8%

The company has a market cap of $2.32 trillion, a P/E ratio of 33.22, a P/E/G ratio of 1.43 and a beta of 1.28. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 0.81. The company's 50-day moving average is $225.57 and its two-hundred day moving average is $213.26.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Thursday, July 31st. The e-commerce giant reported $1.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.37. Amazon.com had a net margin of 10.54% and a return on equity of 23.84%. The company had revenue of $167.70 billion for the quarter, compared to analysts' expectations of $161.80 billion. During the same quarter last year, the company posted $1.26 earnings per share. The firm's quarterly revenue was up 13.3% on a year-over-year basis. Amazon.com has set its Q3 2025 guidance at EPS. As a group, equities analysts predict that Amazon.com, Inc. will post 6.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, VP Shelley Reynolds sold 2,715 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $221.64, for a total value of $601,752.60. Following the sale, the vice president owned 119,780 shares in the company, valued at approximately $26,548,039.20. This trade represents a 2.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Douglas J. Herrington sold 2,500 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $217.10, for a total transaction of $542,750.00. Following the completion of the sale, the chief executive officer owned 515,507 shares in the company, valued at $111,916,569.70. This represents a 0.48% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,741,053 shares of company stock valued at $630,824,413 in the last ninety days. Corporate insiders own 10.80% of the company's stock.

Institutional Investors Weigh In On Amazon.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMZN. Carderock Capital Management Inc. purchased a new position in shares of Amazon.com during the 2nd quarter worth $27,000. Cooksen Wealth LLC purchased a new position in shares of Amazon.com during the 1st quarter worth $36,000. Inlight Wealth Management LLC purchased a new position in shares of Amazon.com during the 1st quarter worth $40,000. Maryland Capital Advisors Inc. boosted its stake in shares of Amazon.com by 81.9% during the 2nd quarter. Maryland Capital Advisors Inc. now owns 211 shares of the e-commerce giant's stock worth $46,000 after acquiring an additional 95 shares during the last quarter. Finally, Capitol Family Office Inc. bought a new stake in shares of Amazon.com during the 1st quarter valued at $42,000. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com Company Profile

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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