Amazon.com (NASDAQ:AMZN) Stock Price Down 2.3% - Here's What Happened

Key Points

• Amazon.com's stock price decreased by 2.3%, trading as low as $223.10, with a significant drop in trading volume, declining by 75% from its average.
• Despite the recent downgrade from some analysts, Amazon maintains a consensus rating of "Buy" from the majority of analysts, with a target price averaging $262.87.
• Insider activity shows a notable sell-off, with CFO Brian T. Olsavsky and VP Shelley Reynolds selling shares recently, resulting in a combined total of more than $4.5 million in sales.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) traded down 2.3% during mid-day trading on Tuesday . The stock traded as low as $223.10 and last traded at $223.72. 11,001,697 shares traded hands during trading, a decline of 75% from the average session volume of 43,780,832 shares. The stock had previously closed at $229.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Amazon.com from $255.00 to $265.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Monness Crespi & Hardt lifted their price target on shares of Amazon.com from $265.00 to $275.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Truist Financial raised their target price on shares of Amazon.com from $226.00 to $250.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Westpark Capital restated a "buy" rating and issued a $280.00 price target on shares of Amazon.com in a report on Friday, August 1st. Finally, BNP Paribas upgraded shares of Amazon.com from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 27th. Two 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 company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $262.87.

Amazon.com Trading Up 4.3%

The company has a current ratio of 1.02, a quick ratio of 0.81 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $2.51 trillion, a price-to-earnings ratio of 35.93, a price-to-earnings-growth ratio of 1.52 and a beta of 1.30. The company has a fifty day moving average price of $225.56 and a 200-day moving average price of $208.09.

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. Amazon.com had a return on equity of 23.84% and a net margin of 10.54%.The firm had revenue of $167.70 billion during the quarter, compared to the consensus estimate of $161.80 billion. During the same quarter in the prior year, the company earned $1.26 EPS. The firm's revenue for the quarter was up 13.3% compared to the same quarter last year. Amazon.com has set its Q3 2025 guidance at EPS. On average, equities research analysts predict that Amazon.com, Inc. will post 6.31 EPS for the current year.

Insider Activity

In related news, insider Jeffrey P. Bezos sold 4,273,237 shares of the business's stock in a transaction that occurred on Friday, July 11th. The shares were sold at an average price of $224.81, for a total transaction of $960,666,409.97. Following the completion of the transaction, the insider owned 897,722,088 shares in the company, valued at approximately $201,816,902,603.28. The trade was a 0.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last 90 days, insiders sold 25,097,911 shares of company stock valued at $5,676,032,574. 9.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Reynders McVeigh Capital Management LLC lifted its stake in Amazon.com by 7.1% during the second quarter. Reynders McVeigh Capital Management LLC now owns 176,450 shares of the e-commerce giant's stock worth $38,711,000 after purchasing an additional 11,688 shares during the last quarter. SevenBridge Financial Group LLC raised its holdings in Amazon.com by 1.3% during the 2nd quarter. SevenBridge Financial Group LLC now owns 69,833 shares of the e-commerce giant's stock worth $15,466,000 after purchasing an additional 897 shares during the last quarter. American Trust lifted its holdings in Amazon.com by 26.7% in the second quarter. American Trust now owns 31,105 shares of the e-commerce giant's stock valued at $6,824,000 after buying an additional 6,547 shares during the period. PVG Asset Management Corp grew its stake in Amazon.com by 3.2% during the second quarter. PVG Asset Management Corp now owns 4,296 shares of the e-commerce giant's stock worth $942,000 after purchasing an additional 132 shares during the period. Finally, Evolution Wealth Management Inc. acquired a new stake in shares of Amazon.com during the 2nd quarter worth approximately $661,000. 72.20% of the stock is currently owned by institutional investors.

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.