Amazon.com (NASDAQ:AMZN) Shares Down 2.1% After Insider Selling

Key Points

• Amazon shares fell 2.1% in mid-day trading after insider selling news, with the stock dipping as low as $255.19 before recovering slightly.
• CEO Douglas J. Herrington sold 3,742 shares for about $982,612 in a pre-arranged Rule 10b5-1 plan, trimming his ownership by 0.78%.
• Despite the pullback, analysts remain bullish: 57 analysts rate Amazon a Buy, with a consensus target price of $312.67, and recent reports have even raised price targets.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) were down 2.1% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $255.19 and last traded at $259.3210. Approximately 40,143,409 shares traded hands during trading, a decline of 18% from the average daily volume of 49,059,730 shares. The stock had previously closed at $264.86.

Specifically, CEO Douglas J. Herrington sold 3,742 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $262.59, for a total value of $982,611.78. Following the completion of the transaction, the chief executive officer directly owned 476,972 shares in the company, valued at $125,248,077.48. This trade represents a 0.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. China Renaissance raised their price objective on Amazon.com from $300.00 to $326.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. HSBC boosted their price objective on Amazon.com from $280.00 to $310.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. TD Securities upgraded Amazon.com to a "buy" rating in a research report on Monday, April 13th. Citizens Jmp restated a "market outperform" rating and issued a $315.00 price objective on shares of Amazon.com in a research report on Friday, April 10th. Finally, William Blair reaffirmed an "outperform" rating on shares of Amazon.com in a research note on Thursday, April 9th. Fifty-seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $312.67.

Trending Headlines about Amazon.com

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: Amazon is still seeing strong investor enthusiasm around AI and AWS, with multiple articles highlighting demand for its Trainium chips, cloud infrastructure, and industrial AI partnerships. Amazon (AMZN) Stock Falls despite Surge in Trainium AI Chip Demand
• Positive Sentiment: Hedge-fund and billionaire buying is adding a bullish tone, including reports that David Tepper doubled his Amazon stake and ARK Invest added to AMZN, which can support sentiment around the stock. Billionaire David Tepper Just Made a Big Bet. Should You Follow His Lead?
• Positive Sentiment: Analysts remain upbeat, with price-target raises and articles noting Amazon’s strong year-to-date performance, suggesting Wall Street still sees upside from AWS and AI data-center spending. Arete Research adjusts price target on Amazon.com
• Neutral Sentiment: Amazon Web Services expanded its enterprise footprint through new collaborations with FIS and AVEVA, which are constructive long-term signs but not likely to move the stock on their own. FIS Brings Enterprise Risk Suite to Amazon Web Services
• Neutral Sentiment: Amazon’s newer consumer features, including Alexa+ podcast generation and Fire TV/Alexa upgrades, support the retail and ecosystem story, but these are more incremental than immediate stock drivers. Amazon's new Alexa+ powered feature can generate podcast episodes
• Negative Sentiment: There are also a few headwinds, including a class-action lawsuit over tariff-cost claims and insider selling by CEO Douglas J. Herrington, though the sale was pre-planned under a 10b5-1 arrangement. Amazon faces class action over tariff cost claims
• Negative Sentiment: Some commentary also suggests Amazon is no longer a cheap valuation story, which can temper enthusiasm after the recent run-up in AMZN shares. Amazon (AMZN) Is No Longer Cheap. AWS Makes It Hard to Walk Away

Amazon.com Price Performance

The company has a quick ratio of 1.01, a current ratio of 1.18 and a debt-to-equity ratio of 0.27. The company has a market cap of $2.79 trillion, a PE ratio of 31.02, a P/E/G ratio of 1.98 and a beta of 1.46. The stock has a 50-day simple moving average of $235.39 and a 200 day simple moving average of $230.94.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The company had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter in the previous year, the business earned $1.59 earnings per share. The company's revenue for the quarter was up 16.6% on a year-over-year basis. Equities analysts expect that Amazon.com, Inc. will post 7.71 EPS for the current year.

Institutional Investors Weigh In On Amazon.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Red Crane Wealth Management LLC increased its stake in shares of Amazon.com by 2.3% during the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock worth $346,000 after buying an additional 38 shares during the period. Robinson Smith Wealth Advisors LLC boosted its position in shares of Amazon.com by 0.7% in the 1st quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after purchasing an additional 40 shares during the period. Sfam LLC boosted its position in shares of Amazon.com by 3.4% in the 1st quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock valued at $255,000 after purchasing an additional 40 shares during the period. Measured Risk Portfolios Inc. boosted its position in shares of Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock valued at $251,000 after purchasing an additional 40 shares during the period. Finally, Lifelong Wealth Advisors Inc. boosted its position in shares of Amazon.com by 2.4% in the 4th quarter. Lifelong Wealth Advisors Inc. now owns 1,740 shares of the e-commerce giant's stock valued at $402,000 after purchasing an additional 41 shares during the period. Hedge funds and other institutional investors own 72.20% of the company's stock.

About Amazon.com

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon's online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

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