Amazon.com, Inc. $AMZN Shares Sold by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP reduced its Amazon stake by 9.2%, selling 209,301 shares in the third quarter while retaining 2.07 million shares valued at approximately $516.2 million. Institutional investors collectively own 72.2% of Amazon.
• Analysts remain broadly bullish, citing accelerating AWS and AI infrastructure demand, advertising, Prime and automation opportunities. Amazon has a “Moderate Buy” consensus rating, with an average price target of $322.53 and several firms setting targets of $350 or higher.
• Investors are watching Amazon’s upcoming quarterly report for updates on AWS growth, margins, capital spending and free cash flow. The company’s heavy AI investment plan has pushed free cash flow negative and raised concerns about infrastructure execution and near-term returns.

Sustainable Growth Advisers LP lessened its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 9.2% during the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 2,072,028 shares of the e-commerce giant's stock after selling 209,301 shares during the period. Amazon.com comprises approximately 5.6% of Sustainable Growth Advisers LP's holdings, making the stock its 5th biggest position. Sustainable Growth Advisers LP's holdings in Amazon.com were worth $516,246,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. TOP Private Wealth LLC. bought a new position in Amazon.com in the second quarter worth approximately $29,000. Bard Associates Inc. bought a new stake in shares of Amazon.com during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC bought a new stake in shares of Amazon.com during the 2nd quarter valued at $33,000. Atomic Invest LLC grew its position in shares of Amazon.com by 41.2% during the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant's stock valued at $40,000 after acquiring an additional 49 shares during the period. Finally, Strategic Wealth Advisors LLC purchased a new stake in shares of Amazon.com in the 2nd quarter worth $68,000. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com News Summary

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

• Positive Sentiment: AWS growth is accelerating, with analysts focused on stronger demand for AI infrastructure, a large cloud backlog and potential margin expansion. Morgan Stanley named Amazon a top pick and raised its price target to $350, citing AWS growth, advertising, Prime, and fulfillment automation as additional catalysts. Amazon's $350 Price Target Faces a Big Earnings Test
• Positive Sentiment: CEO Andy Jassy said Amazon’s Trainium chips could reduce AI inference costs, which he characterized as roughly 10 times too high today. Successful adoption of internally designed chips could lower AWS infrastructure costs and improve profitability. Amazon CEO Discusses AI Inference Costs and Trainium
• Positive Sentiment: Analysts also see longer-term upside from warehouse automation, logistics expansion and advertising monetization, while Amazon’s planned UK entry-level hiring initiative may support its workforce and public-image goals. Amazon Logistics Automation Offers Long-Term Margin Gains
• Neutral Sentiment: Investors are awaiting the October 29 quarterly report, which is expected to clarify AWS growth, cloud margins, capital-spending guidance, free-cash-flow recovery and early Prime Day demand. Amazon Earnings Scheduled for October 29
• Negative Sentiment: The $220 billion investment plan has pushed free cash flow into the red and raised concerns that AI spending may outpace near-term returns. Reports that Nvidia hardware is waiting for available data-center power add execution risk to the infrastructure buildout. Amazon AI Hardware Awaits Data-Center Power

Analyst Ratings Changes

Several research firms have recently commented on AMZN. Mizuho set a $330.00 target price on Amazon.com and gave the stock an "outperform" rating in a report on Friday, July 31st. Truist Financial lifted their target price on Amazon.com from $320.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, July 31st. TD Cowen reissued a "buy" rating and set a $350.00 price target on shares of Amazon.com in a report on Monday, October 5th. Morgan Stanley reissued an "overweight" rating and set a $350.00 price target (up from $335.00) on shares of Amazon.com in a report on Monday, October 19th. Finally, Rosenblatt Securities upped their price target on Amazon.com from $335.00 to $360.00 and gave the stock a "buy" rating in a research report on Wednesday, September 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Amazon.com presently has a consensus rating of "Moderate Buy" and an average price target of $322.53.

Insiders Place Their Bets

In other news, CEO Andrew R. Jassy sold 20,000 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the transaction, the chief executive officer directly owned 2,235,766 shares in the company, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the company's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $251.50, for a total value of $251,500.00. Following the completion of the transaction, the chief executive officer directly owned 474,681 shares of the company's stock, valued at approximately $119,382,271.50. This trade represents a 0.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,589 shares of company stock worth $18,580,515 in the last three months. 8.90% of the stock is owned by company insiders.

Amazon.com Stock Performance

Shares of NASDAQ AMZN opened at $248.00 on Monday. The firm has a fifty day moving average price of $255.56 and a 200-day moving average price of $253.58. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The stock has a market cap of $2.68 trillion, a PE ratio of 19.95, a price-to-earnings-growth ratio of 2.04 and a beta of 1.45. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $197.03 billion. During the same period last year, the firm earned $1.68 EPS. The company's revenue was up 19.6% on a year-over-year basis. Equities analysts anticipate that Amazon.com, Inc. will post 7.55 earnings per share for the current fiscal year.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company's principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.

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