Amazon.com, Inc. $AMZN Stock: Annex Advisory Services LLC Trims Holdings

Key Points

• Annex Advisory Services LLC cut its Amazon stake by 3.1% in the third quarter, selling 10,899 shares and retaining 344,081 shares valued at approximately $85.7 million. Amazon represents about 1.4% of the firm’s portfolio.
• Amazon reported strong quarterly results, with revenue rising 19.6% year over year to $200.61 billion and EPS of $5.75, well above the $1.82 consensus estimate. Institutional investors own 72.2% of the company.
• Analysts remain bullish, with 57 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $322.53. However, investors are watching whether Amazon’s planned $220 billion investment program and AI infrastructure spending pressure free cash flow and execution.

Annex Advisory Services LLC decreased its position in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 3.1% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 344,081 shares of the e-commerce giant's stock after selling 10,899 shares during the quarter. Amazon.com accounts for approximately 1.4% of Annex Advisory Services LLC's holdings, making the stock its 18th biggest holding. Annex Advisory Services LLC's holdings in Amazon.com were worth $85,728,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in AMZN. TOP Private Wealth LLC. bought a new stake in Amazon.com during the second quarter worth about $29,000. Bard Associates Inc. acquired a new stake in shares of Amazon.com during the second quarter worth approximately $32,000. Longfellow Investment Management Co. LLC bought a new position in shares of Amazon.com in the second quarter valued at approximately $33,000. Atomic Invest LLC raised its stake in shares of Amazon.com by 41.2% in the second 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 last quarter. Finally, Strategic Wealth Advisors LLC bought a new position in shares of Amazon.com in the second quarter valued at approximately $68,000. Institutional investors own 72.20% of the company's stock.

Trending Headlines about Amazon.com

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

Amazon.com Price Performance

NASDAQ AMZN opened at $248.00 on Monday. The stock has a fifty day moving average of $255.56 and a 200-day moving average of $253.58. The stock 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 52 week low of $196.00 and a 52 week high of $287.20. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to analysts' expectations of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. The firm's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.68 earnings per share. On average, equities research analysts forecast that Amazon.com, Inc. will post 7.55 EPS for the current year.

Analysts Set New Price Targets

AMZN has been the topic of several recent analyst reports. Raymond James Financial reissued an "outperform" rating and issued a $390.00 target price (up from $280.00) on shares of Amazon.com in a report on Friday, July 31st. Barclays reaffirmed an "overweight" rating and set a $365.00 price target (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Pivotal Research reiterated a "buy" rating and issued a $333.00 price objective (up from $320.00) on shares of Amazon.com in a research report on Friday, July 31st. Weiss Ratings reiterated a "buy (b)" rating on shares of Amazon.com in a research report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $325.00 price objective (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $322.53.

Insider Activity at Amazon.com

In other news, CEO Matthew S. Garman sold 14,541 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.06, for a total value of $3,766,991.46. Following the transaction, the chief executive officer owned 17,794 shares of the company's stock, valued at approximately $4,609,713.64. This trade represents a 44.97% decrease in their position. The sale was disclosed in a document filed 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 Jassy sold 20,000 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were 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 owned 2,235,766 shares in the company, valued at $579,085,751.66. This represents a 0.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 71,589 shares of company stock worth $18,580,515. Insiders own 8.90% of the company's stock.

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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