Amazon.com (NASDAQ:AMZN) Stock Price Down 5% - Should You Sell?

Key Points

• Amazon.com shares dropped by 5% during mid-day trading, reaching a low of $216.00, with trading volume significantly increasing by 58% compared to the average.
• Despite the decline, several Wall Street analysts have maintained a generally positive outlook, with a consensus rating of "Buy" and an average price target of $266.26 for Amazon's stock.
• Recent executive stock sales, including from VP Shelley Reynolds and CEO Andrew R. Jassy, amounted to significant transactions but indicate only minor decreases in their owned shares.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) traded down 5% during mid-day trading on Friday . The company traded as low as $216.00 and last traded at $216.37. 69,988,328 shares changed hands during mid-day trading, an increase of 58% from the average session volume of 44,277,227 shares. The stock had previously closed at $227.74.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Rosenblatt Securities increased their price target on Amazon.com from $288.00 to $297.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Morgan Stanley reaffirmed an "overweight" rating on shares of Amazon.com in a research note on Wednesday, September 10th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Amazon.com in a research note on Wednesday. BMO Capital Markets increased their price objective on Amazon.com from $270.00 to $280.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Finally, Canaccord Genuity Group reiterated a "buy" rating and set a $280.00 price objective on shares of Amazon.com in a research report on Friday, August 1st. Three analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $266.26.

Amazon.com Price Performance

The company has a quick ratio of 0.81, a current ratio of 1.02 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $2.31 trillion, a price-to-earnings ratio of 32.98, a P/E/G ratio of 1.51 and a beta of 1.28. The company's 50-day simple moving average is $225.90 and its 200 day simple moving average is $211.75.

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

Insiders Place Their Bets

In other Amazon.com news, VP Shelley Reynolds sold 2,715 shares of the firm's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $221.64, for a total transaction of $601,752.60. Following the completion of the transaction, the vice president owned 119,780 shares in the company, valued at $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 Securities & Exchange Commission, which is available at this link. Also, CEO Andrew R. Jassy sold 19,872 shares of the firm's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $221.58, for a total transaction of $4,403,237.76. Following the transaction, the chief executive officer owned 2,178,502 shares of the company's stock, valued at approximately $482,712,473.16. This represents a 0.90% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 14,040,098 shares of company stock valued at $3,204,129,405 in the last quarter. 9.70% of the stock is currently owned by insiders.

Institutional Trading of Amazon.com

A number of institutional investors have recently bought and sold shares of AMZN. Western Wealth Management LLC lifted its position in Amazon.com by 0.9% during the 1st quarter. Western Wealth Management LLC now owns 140,122 shares of the e-commerce giant's stock worth $26,660,000 after buying an additional 1,297 shares in the last quarter. Flaharty Asset Management LLC grew its stake in 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 valued at $968,000 after buying an additional 2,377 shares during the last quarter. Barnes Dennig Private Wealth Management LLC acquired a new position in Amazon.com in the 1st quarter valued at about $514,000. Border to Coast Pensions Partnership Ltd grew its stake in Amazon.com by 6.0% in the 2nd quarter. Border to Coast Pensions Partnership Ltd now owns 1,136,311 shares of the e-commerce giant's stock valued at $249,295,000 after buying an additional 63,924 shares during the last quarter. Finally, Harbor Investment Advisory LLC boosted its holdings 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 valued at $58,000 after purchasing an additional 2,145 shares during the period. Institutional investors and hedge funds 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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