Amazon.com (NASDAQ:AMZN) Shares Down 3% - Time to Sell?

Key Points

• Amazon.com (NASDAQ:AMZN) shares fell 3% during trading, closing at $220.71, with a significant increase in trading volume up to 70.6 million shares.
• Analyst ratings are largely positive, with targets set by various brokerages ranging from $250.00 to $297.00 and an average target price of $263.30.
• In Q2, Amazon reported earnings per share of $1.68, beating estimates, and had revenue of $167.70 billion, reflecting a year-over-year increase of 13.3%.

Amazon.com, Inc. (NASDAQ:AMZN) fell 3% during trading on Tuesday . The company traded as low as $220.07 and last traded at $220.71. 70,640,380 shares were traded during trading, an increase of 60% from the average session volume of 44,125,777 shares. The stock had previously closed at $227.63.

Analyst Ratings Changes

Several brokerages recently issued reports on AMZN. Wedbush reissued an "outperform" rating and set a $250.00 price objective on shares of Amazon.com in a research note on Friday. UBS Group reaffirmed a "buy" rating and set a $271.00 price objective (up previously from $249.00) on shares of Amazon.com in a research note on Monday, July 28th. Rosenblatt Securities boosted their target price on shares of Amazon.com from $288.00 to $297.00 and gave the company a "buy" rating in a report on Friday, August 1st. Stifel Nicolaus lifted their price target on shares of Amazon.com from $245.00 to $262.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Finally, HSBC lifted their target price on Amazon.com from $240.00 to $256.00 in a report on Tuesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Amazon.com currently has an average rating of "Buy" and an average target price of $263.30.

Amazon.com Stock Performance

The firm has a market capitalization of $2.35 trillion, a price-to-earnings ratio of 33.64, a price-to-earnings-growth ratio of 1.55 and a beta of 1.31. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.81 and a current ratio of 1.02. The stock's fifty day moving average is $227.85 and its two-hundred day moving average is $209.69.

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

Insider Activity at Amazon.com

In related news, insider Jeffrey P. Bezos sold 4,273,237 shares of Amazon.com stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $224.81, for a total value of $960,666,409.97. Following the completion of the transaction, the insider directly owned 897,722,088 shares in the company, valued at approximately $201,816,902,603.28. This trade represents a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold a total of 25,097,911 shares of company stock worth $5,676,032,574 over the last quarter. Company insiders own 10.80% of the company's stock.

Institutional Investors Weigh In On Amazon.com

Institutional investors and hedge funds have recently made changes to their positions in the company. Western Wealth Management LLC boosted its stake in Amazon.com by 0.9% in the first quarter. Western Wealth Management LLC now owns 140,122 shares of the e-commerce giant's stock valued at $26,660,000 after acquiring an additional 1,297 shares during the period. Flaharty Asset Management LLC lifted its holdings in shares of Amazon.com by 87.7% in the 1st quarter. Flaharty Asset Management LLC now owns 5,088 shares of the e-commerce giant's stock worth $968,000 after purchasing an additional 2,377 shares during the last quarter. Barnes Dennig Private Wealth Management LLC bought a new stake in Amazon.com in the first quarter valued at $514,000. McIlrath & Eck LLC lifted its position in Amazon.com by 8.8% in the 4th quarter. McIlrath & Eck LLC now owns 18,498 shares of the e-commerce giant's stock valued at $4,058,000 after purchasing an additional 1,490 shares during the last quarter. Finally, Harbor Investment Advisory LLC grew its position in Amazon.com by 0.7% in the 1st quarter. Harbor Investment Advisory LLC now owns 304,091 shares of the e-commerce giant's stock worth $58,000 after purchasing an additional 2,145 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

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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