Addenda Capital Inc. Buys 15,326 Shares of Amazon.com, Inc. $AMZN

Key Points

• Addenda Capital increased its Amazon stake by 9.3% in the second quarter, purchasing 15,326 shares to reach 179,982 shares valued at approximately $42.9 million. Institutional investors collectively own 72.2% of Amazon.
• Amazon reported strong quarterly results, with $5.75 in earnings per share versus the $1.82 consensus estimate and revenue of $200.61 billion, up 19.6% year over year.
• Analysts maintain a bullish outlook, with 56 Buy ratings and three Holds and a consensus price target of $321.19; however, executives sold shares under pre-arranged trading plans, and the company faces legal, regulatory and AWS pricing risks.

Addenda Capital Inc. lifted its stake in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 9.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 179,982 shares of the e-commerce giant's stock after buying an additional 15,326 shares during the period. Amazon.com makes up 1.5% of Addenda Capital Inc.'s portfolio, making the stock its 20th biggest position. Addenda Capital Inc.'s holdings in Amazon.com were worth $42,888,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also modified their holdings of the stock. Bard Associates Inc. acquired a new stake in Amazon.com in the second quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC acquired a new position in shares of Amazon.com during the second quarter worth $33,000. Lifetime Wealth Management P.C. acquired a new position in shares of Amazon.com during the fourth quarter worth $45,000. Prudent Man Investment Management Inc. boosted its stake in shares of Amazon.com by 87.7% in the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock valued at $53,000 after purchasing an additional 107 shares during the period. Finally, Strategic Wealth Advisors LLC purchased a new position in shares of Amazon.com in the second quarter valued at $68,000. Institutional investors and hedge funds own 72.20% of the company's stock.

Amazon.com Price Performance

Shares of NASDAQ AMZN opened at $246.15 on Tuesday. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $2.66 trillion, a price-to-earnings ratio of 19.80, a price-to-earnings-growth ratio of 1.93 and a beta of 1.44. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve month high of $287.20. The business has a 50 day simple moving average of $256.31 and a 200-day simple moving average of $247.42.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping analysts' consensus estimates of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same quarter in the previous year, the company posted $1.68 earnings per share. The firm's revenue was up 19.6% on a year-over-year basis. As a group, equities research analysts expect that Amazon.com, Inc. will post 8.01 earnings per share for the current year.

More Amazon.com News

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: Adobe expects U.S. consumers to spend approximately $10 billion during Amazon’s October Prime Day, contributing to a projected record $275 billion U.S. holiday shopping season. Higher online spending could support fourth-quarter sales, although aggressive retailer promotions may pressure margins. Amazon Has a $10 Billion Holiday Catalyst Coming in October
• Positive Sentiment: Analysts and investors continue to point to accelerating AWS growth, a large contracted backlog and rising AI-related cloud demand. Commentary that Amazon’s AI capital expenditures are beginning to generate returns supports the long-term bull case for AWS. I'd Buy Amazon Stock While It Sits 12% Below Its Record
• Positive Sentiment: Amazon is expanding its strategic footprint through robotics in India, low-carbon data-center infrastructure and its Leo satellite network. These initiatives could strengthen logistics, cloud infrastructure and future connectivity businesses, though they require substantial investment.
• Neutral Sentiment: Amazon’s comparison with Alibaba highlights that both companies are making major AI and cloud investments. The key differentiator for investors is whether AWS growth and profitability can justify Amazon’s spending pace.
• Negative Sentiment: Cheaper Anthropic Claude models are raising questions about AWS Bedrock pricing. Lower prices could reduce revenue per AI call, even if they stimulate greater usage and overall cloud consumption. Amazon Stock Falls as Cheaper Claude Tests Bedrock Elasticity
• Negative Sentiment: Senate Democrats are seeking information from Amazon and other technology companies about tax subsidies for AI and data-center development, creating potential regulatory and political uncertainty around future incentives. Sen. Warren Questions AI Tax Subsidies
• Negative Sentiment: A U.K. consumer lawsuit alleging that Apple and Amazon restricted competition in Apple-product sales was allowed to proceed in part, adding to Amazon’s legal and antitrust exposure. Apple and Amazon Face Revived UK Consumer Lawsuit

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on AMZN shares. Benchmark lifted their price target on shares of Amazon.com from $370.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. KeyCorp upped their price objective on shares of Amazon.com from $335.00 to $350.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. BMO Capital Markets restated an "outperform" rating and set a $360.00 target price (up from $355.00) on shares of Amazon.com in a research note on Tuesday, July 28th. Wedbush lifted their target price on Amazon.com from $293.00 to $310.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Amazon.com in a research note on Thursday, June 18th. Fifty-six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $321.19.

Insiders Place Their Bets

In related news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares in the company, valued at $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the firm's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the transaction, the chief executive officer directly owned 2,235,766 shares in the company, valued at $579,085,751.66. This represents a 0.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 71,589 shares of company stock worth $18,568,785. Corporate insiders own 8.90% of the company's stock.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon's major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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