Amazon.com, Inc. $AMZN Stock: Davis Rea LTD. Increases Holdings

Key Points

• Davis Rea LTD. increased its Amazon stake by 11.1% in the third quarter to 100,526 shares valued at approximately $25.05 million, making Amazon its fifth-largest holding. Institutional investors and hedge funds collectively own 72.2% of the stock.
• Analyst sentiment remains strongly positive, with 57 analysts rating Amazon a Buy and three assigning a Hold rating. The stock has an average “Moderate Buy” rating and a consensus price target of $322.53.
• Amazon reported quarterly revenue of $200.61 billion, up 19.6% year over year, and EPS of $5.75 versus expectations of $1.82. However, investors remain focused on whether heavy AI and data-center spending will translate into sustained AWS growth and improved free cash flow.

Davis Rea LTD. lifted its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 11.1% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 100,526 shares of the e-commerce giant's stock after acquiring an additional 10,005 shares during the quarter. Amazon.com accounts for 7.2% of Davis Rea LTD.'s portfolio, making the stock its 5th largest holding. Davis Rea LTD.'s holdings in Amazon.com were worth $25,046,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of AMZN. Trust Asset Management LLC boosted its stake in Amazon.com by 3.3% in the 2nd quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after purchasing an additional 3,414 shares during the period. TOP Private Wealth LLC. purchased a new position in Amazon.com during the 2nd quarter worth approximately $29,000. Bard Associates Inc. acquired a new stake in Amazon.com during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC acquired a new stake in Amazon.com during the 2nd quarter valued at $33,000. Finally, Atomic Invest LLC lifted its holdings 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 purchasing an additional 49 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have recently commented on AMZN shares. Robert W. Baird set a $310.00 target price on Amazon.com and gave the stock an "outperform" rating in a research report on Friday, July 31st. Citigroup reissued a "market outperform" rating on shares of Amazon.com in a research report on Friday, August 14th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $325.00 price target (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Roth Capital reissued a "buy" rating and issued a $325.00 price objective on shares of Amazon.com in a research note on Monday, August 3rd. Finally, UBS Group set a $200.00 price objective on Amazon.com in a research report on Thursday, September 17th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Amazon.com currently has an average rating of "Moderate Buy" and an average target price of $322.53.

Amazon.com Price Performance

NASDAQ AMZN opened at $262.45 on Tuesday. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $2.83 trillion, a PE ratio of 21.11, a price-to-earnings-growth ratio of 1.93 and a beta of 1.45. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company has a 50 day moving average price of $256.44 and a two-hundred day moving average price of $252.31.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, topping 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 in the prior year, the business posted $1.68 earnings per share. The business's quarterly revenue was up 19.6% on a year-over-year basis. As a group, equities analysts predict that Amazon.com, Inc. will post 8.02 earnings per share for the current fiscal year.

Key Amazon.com News

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

• Positive Sentiment: Morgan Stanley names Amazon a top pick: The firm raised its price target to $350 from $335 and maintained an Overweight rating, citing an “under-appreciated” AWS growth runway. Morgan Stanley now expects AWS growth of approximately 47% in 2027, alongside potential gains from Bedrock, agentic AI, advertising, robotics and automated fulfillment. Amazon stock pops after Morgan Stanley details five catalysts
• Positive Sentiment: AWS makes Trainium easier to adopt: Amazon introduced TorchNeuron, a tool designed to let developers run existing PyTorch applications on its Trainium chips with minimal code changes. The software could reduce Nvidia’s CUDA-related ecosystem advantage, improve Trainium adoption and lower customer AI-computing costs. Amazon is taking its biggest shot at Nvidia with TorchNeuron
• Positive Sentiment: Long-term power strategy supports AI expansion: Amazon agreed to fund development of a proposed 960-megawatt Indiana nuclear plant and intends to purchase its electricity. The project could provide reliable power for expanding data-center capacity, although it remains subject to feasibility work and approvals. Amazon to fund 12 small nuclear reactors in Indiana
• Neutral Sentiment: Data-center supply chain activity: 3M expanded its commercial relationship with Amazon for data-center products, reportedly involving a multibillion-dollar opportunity. The agreement highlights continued infrastructure spending but does not appear to materially change Amazon’s near-term earnings outlook. 3M expands Amazon data center partnership
• Negative Sentiment: Capital intensity remains a risk: Commentary noted Amazon’s planned roughly $220 billion in annual capital expenditures, negative free cash flow and higher long-term debt. Investors will need evidence that AI spending translates into durable AWS revenue and margin expansion. Amazon’s AI data-center spending challenges

Insider Buying and Selling

In other news, CEO Douglas 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 transaction of $251,500.00. Following the completion of the sale, the chief executive officer owned 474,681 shares in the company, valued at approximately $119,382,271.50. This represents a 0.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the 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 directly owned 17,794 shares in the company, valued at approximately $4,609,713.64. This represents a 44.97% 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. Over the last ninety days, insiders have sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is owned by corporate insiders.

Amazon.com 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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