Amazon.com (NASDAQ:AMZN) Trading 2.5% Higher - Time to Buy?

Key Points

• Amazon.com shares rose 2.5% to $227.44 during mid-day trading, although the trading volume declined significantly by 75% compared to the average session.
• Analysts maintain a favorable outlook on Amazon, with an average price target of $262.87 and a majority rating the stock as a "Buy."
• Amazon reported $1.68 earnings per share, exceeding estimates and achieving 13.3% year-over-year revenue growth of $167.70 billion.

Amazon.com, Inc. (NASDAQ:AMZN) traded up 2.5% during mid-day trading on Friday . The company traded as high as $226.91 and last traded at $227.44. 11,005,771 shares were traded during mid-day trading, a decline of 75% from the average session volume of 44,379,398 shares. The stock had previously closed at $221.95.

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. Westpark Capital reissued a "buy" rating and issued a $280.00 price objective on shares of Amazon.com in a report on Friday, August 1st. Evercore ISI reissued an "outperform" rating and issued a $280.00 price objective on shares of Amazon.com in a report on Wednesday, August 13th. Piper Sandler boosted their price objective on shares of Amazon.com from $250.00 to $255.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Sanford C. Bernstein set a $235.00 price objective on shares of Amazon.com and gave the company an "outperform" rating in a report on Tuesday, July 1st. Finally, DA Davidson boosted their price objective on shares of Amazon.com from $230.00 to $265.00 and gave the company a "buy" rating in a report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Amazon.com currently has an average rating of "Buy" and an average price target of $262.87.

Amazon.com Price Performance

The stock has a market cap of $2.44 trillion, a P/E ratio of 34.88, a PEG ratio of 1.51 and a beta of 1.31. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 0.81. The business's fifty day moving average price is $222.30 and its 200 day moving average price is $208.35.

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

Insider Activity

In other news, insider Jeffrey P. Bezos sold 4,273,237 shares of the firm's stock in a transaction dated Friday, July 11th. The stock was 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 directly owned 897,722,088 shares in the company, valued at $201,816,902,603.28. This trade represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 25,012,284 shares of company stock worth $5,656,976,492 in the last ninety days. 9.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Amazon.com

A number of hedge funds have recently made changes to their positions in the stock. Castlekeep Investment Advisors LLC bought a new stake in shares of Amazon.com during the 4th quarter valued at about $25,000. Prudent Man Investment Management Inc. bought a new position in Amazon.com in the 4th quarter valued at about $27,000. Carderock Capital Management Inc. bought a new stake in Amazon.com during the second quarter worth $27,000. LSV Asset Management bought a new stake in Amazon.com during the fourth quarter worth $35,000. Finally, Cooksen Wealth LLC bought a new stake in Amazon.com in the first quarter worth about $36,000. 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.

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