Amazon.com, Inc. $AMZN Stake Reduced by Cornerstone Enterprises LLC

Key Points

• Cornerstone Enterprises cut its Amazon stake by 40% in the third quarter, selling 17,907 shares and retaining 26,901 shares valued at approximately $6.7 million. Institutional investors collectively own 72.2% of Amazon.
• Amazon reported strong quarterly results, with earnings of $5.75 per share versus the $1.82 consensus estimate and revenue of $200.61 billion, up 19.6% year over year.
• Analysts remain bullish, citing accelerating AWS and AI-infrastructure demand; Amazon has a “Moderate Buy” consensus rating and an average price target of $322.53, though its heavy AI investment is pressuring free cash flow.

Cornerstone Enterprises LLC lessened its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 40.0% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 26,901 shares of the e-commerce giant's stock after selling 17,907 shares during the quarter. Amazon.com makes up approximately 4.1% of Cornerstone Enterprises LLC's investment portfolio, making the stock its 8th largest position. Cornerstone Enterprises LLC's holdings in Amazon.com were worth $6,702,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of AMZN. ACT Advisors LLC. grew its stake in shares of Amazon.com by 11.4% in the 3rd quarter. ACT Advisors LLC. now owns 5,419 shares of the e-commerce giant's stock valued at $1,350,000 after buying an additional 555 shares during the period. Daytona Street Capital LLC raised its stake in Amazon.com by 6.8% during the 3rd quarter. Daytona Street Capital LLC now owns 21,765 shares of the e-commerce giant's stock worth $5,470,000 after buying an additional 1,391 shares during the period. Ellsworth Advisors LLC raised its stake in Amazon.com by 5.7% during the 3rd quarter. Ellsworth Advisors LLC now owns 33,498 shares of the e-commerce giant's stock worth $8,346,000 after buying an additional 1,806 shares during the period. Legacy Wealth Partners LLC boosted its holdings in Amazon.com by 5.6% in the third quarter. Legacy Wealth Partners LLC now owns 8,505 shares of the e-commerce giant's stock worth $2,119,000 after acquiring an additional 453 shares in the last quarter. Finally, Andrews Advisory Associates LLC boosted its holdings in Amazon.com by 143.0% in the third quarter. Andrews Advisory Associates LLC now owns 2,520 shares of the e-commerce giant's stock worth $628,000 after acquiring an additional 1,483 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Insider Buying and Selling

In other Amazon.com news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the completion of the transaction, the senior vice president directly owned 41,190 shares of the company's stock, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,343 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $606,860.43. Following the completion of the sale, the vice president directly owned 119,780 shares of the company's stock, valued at $31,024,217.80. This represents a 1.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders own 8.90% of the company's stock.

Amazon.com Price Performance

Shares of NASDAQ:AMZN opened at $248.00 on Monday. The company's 50-day moving average is $255.56 and its 200 day moving average is $253.58. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The company has a market capitalization of $2.68 trillion, a P/E ratio of 19.95, a price-to-earnings-growth ratio of 2.04 and a beta of 1.45. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating 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 for the quarter, compared to analysts' expectations of $197.03 billion. During the same period in the previous year, the company earned $1.68 earnings per share. The company's quarterly revenue was up 19.6% on a year-over-year basis. On average, equities research analysts forecast that Amazon.com, Inc. will post 7.55 earnings per share for the current year.

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

A number of equities research analysts have commented on the company. Citigroup reissued a "market outperform" rating on shares of Amazon.com in a research note on Friday, August 14th. Truist Financial lifted their price target on shares of Amazon.com from $320.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, July 31st. KeyCorp restated an "overweight" rating on shares of Amazon.com in a report on Thursday, October 15th. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $375.00 price objective (up from $335.00) on shares of Amazon.com in a report on Friday, July 31st. Fifty-seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $322.53.

Amazon.com Company Profile

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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