Amazon.com (NASDAQ:AMZN) Shares Down 2.5% Following Insider Selling

Key Points

• Amazon shares fell 2.5% in mid-day trading after news of insider selling, briefly trading as low as $247.71 before last changing hands around $250.02.
• CEO Douglas J. Herrington sold 1,000 shares at an average price of $266.19 in a pre-arranged Rule 10b5-1 plan, leaving him with 485,527 shares after the transaction.
• Despite the pullback, Wall Street remains bullish: 57 analysts rate AMZN a Buy, with a consensus price target of $312.52, and several firms recently raised their targets.

Amazon.com, Inc. (NASDAQ:AMZN)'s share price fell 2.5% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $247.71 and last traded at $250.02. 50,714,483 shares changed hands during mid-day trading, an increase of 5% from the average session volume of 48,375,977 shares. The stock had previously closed at $256.52.

Specifically, CEO Douglas J. Herrington sold 1,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $266.19, for a total value of $266,190.00. Following the completion of the sale, the chief executive officer owned 485,527 shares of the company's stock, valued at $129,242,432.13. This trade represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

AMZN has been the topic of several research reports. Truist Financial upped their price objective on Amazon.com from $310.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Jefferies Financial Group reissued a "market outperform" rating on shares of Amazon.com in a research note on Monday. Benchmark increased their price target on Amazon.com from $275.00 to $370.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. DZ Bank increased their target price on Amazon.com from $295.00 to $320.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Finally, Canaccord Genuity Group lifted their price objective on shares of Amazon.com from $300.00 to $330.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Fifty-seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $312.52.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Amazon overtook Walmart to become the No. 1 company on the Fortune 500 by revenue, underscoring continued top-line strength and reinforcing the company’s scale advantage. Amazon knocks Walmart from the top spot on Fortune 500 for the first time in 13 years
• Positive Sentiment: Amazon announced Prime Day will run June 23-26, earlier than usual and expanded to four days, which could boost retail traffic, subscription value, and near-term sales. Amazon moves Prime Day back to June, keeps it a four-day event
• Positive Sentiment: Several articles highlighted Amazon as a key AI and cloud beneficiary, including growth in AWS, advertising, and subscription revenue, which investors see as higher-margin engines driving profits. Amazon ranks among stocks most bought by hedge funds in Q1 2026
• Positive Sentiment: Wolfe Research reiterated an Outperform rating and pointed to growth potential in Amazon’s supply chain services, adding to the bullish analyst backdrop. Wolfe Research Reaffirms Outperform on Amazon (AMZN)
• Neutral Sentiment: Some stories were mostly long-term commentary or investor nostalgia pieces about Amazon’s past performance, which are interesting but not likely to move the stock much today.
• Neutral Sentiment: Amazon also drew attention for new AI-generated product images in its shopping app and for launching Prime in South Africa, both of which show product innovation and international expansion but are not immediate earnings drivers.
• Negative Sentiment: Regulatory and legal overhangs remain a concern, including an EU cloud-procurement review and a class-action privacy lawsuit over Ring facial recognition features, which could pressure sentiment around AWS and devices. Amazon Faces Data Scrutiny While Shares Trade Below Analyst Valuation Targets
• Negative Sentiment: One social-media-focused report also noted heavy insider selling over the past six months, which may temper enthusiasm even though it does not appear to be a fresh catalyst.

Amazon.com Stock Performance

The stock's 50-day moving average price is $246.43 and its 200 day moving average price is $232.58. The firm has a market cap of $2.69 trillion, a P/E ratio of 29.91, a price-to-earnings-growth ratio of 1.96 and a beta of 1.44. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

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

Institutional Trading of Amazon.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. American Capital Advisory LLC boosted its position in Amazon.com by 63.9% during the 3rd quarter. American Capital Advisory LLC now owns 8,081 shares of the e-commerce giant's stock worth $1,774,000 after buying an additional 3,152 shares during the period. Compagnie Lombard Odier SCmA acquired a new position in Amazon.com in the 3rd quarter valued at approximately $451,642,000. Narwhal Capital Management raised its stake in shares of Amazon.com by 2.3% during the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant's stock valued at $49,997,000 after acquiring an additional 4,854 shares during the last quarter. Weaver Capital Management LLC lifted its holdings in shares of Amazon.com by 13.6% during the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant's stock worth $9,063,000 after purchasing an additional 4,713 shares during the period. Finally, Ethos Financial Group LLC lifted its holdings in shares of Amazon.com by 9.6% during the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant's stock worth $8,421,000 after purchasing an additional 3,196 shares during the period. 72.20% of the stock is owned by institutional investors.

Amazon.com Company Profile

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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