Amazon.com (NASDAQ:AMZN) Stock Price Down 7.7% Following Analyst Downgrade

Key Points

• Amazon.com stock fell by 7.7% following a downgrade by Oppenheimer, which lowered its price target from $250.00 to $245.00. The stock was last traded at $216.08.
• Despite the downgrade, numerous analysts maintain a positive outlook, with price targets ranging from $220.00 to $280.00 and a consensus rating of "Moderate Buy".
• In addition to stock performance, insider Jeffrey P. Bezos sold over 4.27 million shares valued at approximately $960 million, reducing his ownership by 0.47%.

Amazon.com, Inc. (NASDAQ:AMZN) dropped 7.7% during trading on Friday after Oppenheimer lowered their price target on the stock from $250.00 to $245.00. Oppenheimer currently has an outperform rating on the stock. Amazon.com traded as low as $215.25 and last traded at $216.08. Approximately 48,761,209 shares were traded during mid-day trading, an increase of 10% from the average daily volume of 44,310,316 shares. The stock had previously closed at $234.11.

A number of other equities research analysts have also recently commented on AMZN. Piper Sandler raised their price objective on Amazon.com from $250.00 to $255.00 and gave the company an "overweight" rating in a research note on Friday. Wedbush raised their price objective on Amazon.com from $235.00 to $250.00 and gave the company an "outperform" rating in a research note on Wednesday. Susquehanna raised their price objective on Amazon.com from $225.00 to $260.00 and gave the company a "positive" rating in a research note on Friday. The Goldman Sachs Group reduced their price objective on Amazon.com from $255.00 to $220.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Finally, Canaccord Genuity Group reissued a "buy" rating and issued a $280.00 price objective on shares of Amazon.com in a research note on Friday. Three investment analysts have rated the stock with a hold rating, forty-six have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, Amazon.com has a consensus rating of "Moderate Buy" and a consensus target price of $260.65.

Insider Activity

In other news, insider Jeffrey P. Bezos sold 4,273,237 shares of the company's 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 represents a 0.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders sold 25,099,537 shares of company stock valued at $5,674,394,548. 9.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Barlow Wealth Partners Inc. boosted its holdings in shares of Amazon.com by 0.4% in the 2nd quarter. Barlow Wealth Partners Inc. now owns 12,565 shares of the e-commerce giant's stock worth $2,763,000 after purchasing an additional 44 shares in the last quarter. Northern Capital Management Inc. lifted its stake in shares of Amazon.com by 0.6% in the 4th quarter. Northern Capital Management Inc. now owns 7,353 shares of the e-commerce giant's stock valued at $1,613,000 after acquiring an additional 45 shares during the last quarter. Ridgecrest Wealth Partners LLC lifted its stake in shares of Amazon.com by 0.5% in the 2nd quarter. Ridgecrest Wealth Partners LLC now owns 8,399 shares of the e-commerce giant's stock valued at $1,843,000 after acquiring an additional 45 shares during the last quarter. Probity Advisors Inc. lifted its stake in shares of Amazon.com by 0.4% in the 2nd quarter. Probity Advisors Inc. now owns 12,157 shares of the e-commerce giant's stock valued at $2,667,000 after acquiring an additional 45 shares during the last quarter. Finally, Balanced Wealth Group LLC lifted its stake in shares of Amazon.com by 1.6% in the 4th quarter. Balanced Wealth Group LLC now owns 2,966 shares of the e-commerce giant's stock valued at $705,000 after acquiring an additional 48 shares during the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.84 and a current ratio of 1.05. The business has a 50 day moving average price of $217.93 and a two-hundred day moving average price of $209.23. The company has a market cap of $2.28 trillion, a P/E ratio of 34.91, a price-to-earnings-growth ratio of 1.71 and a beta of 1.33.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its earnings results on Thursday, July 31st. The e-commerce giant reported $1.68 earnings per share for the quarter, beating analysts' consensus estimates of $1.31 by $0.37. The company had revenue of $167.70 billion during the quarter, compared to analyst estimates of $161.80 billion. Amazon.com had a return on equity of 24.14% and a net margin of 10.14%. Amazon.com's revenue for the quarter was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.26 EPS. On average, sell-side analysts anticipate that Amazon.com, Inc. will post 6.31 earnings per share for the current year.

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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