Amazon.com, Inc. $AMZN Stock: Factor Wealth Management LTD Trims Stake

Key Points

• Factor Wealth Management cut its Amazon stake by 27.1% in the third quarter, selling 2,361 shares and retaining 6,340 shares worth approximately $1.58 million.
• Institutional ownership remains substantial at 72.2%, with State Street, Amundi and other major investors increasing their positions, while Amazon insiders have sold roughly $18.6 million of stock over the past 90 days.
• Amazon reported stronger-than-expected quarterly results, including $5.75 in EPS and $200.61 billion in revenue. Analysts remain bullish, assigning the stock a “Moderate Buy” consensus rating and an average price target of $322.53 versus its reported price of $254.08.

Factor Wealth Management LTD cut its holdings in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 27.1% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 6,340 shares of the e-commerce giant's stock after selling 2,361 shares during the quarter. Factor Wealth Management LTD's holdings in Amazon.com were worth $1,580,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. State Street Corp increased its holdings in shares of Amazon.com by 5.5% in the second quarter. State Street Corp now owns 411,848,346 shares of the e-commerce giant's stock valued at $95,504,904,000 after purchasing an additional 21,398,025 shares during the last quarter. Auto Owners Insurance Co raised its position in shares of Amazon.com by 27,376.7% in the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock valued at $2,272,397,000 after purchasing an additional 98,090,585 shares during the period. Bank of America Corp DE bought a new position in shares of Amazon.com in the second quarter valued at about $22,218,775,000. Bank of New York Mellon Corp bought a new position in shares of Amazon.com in the second quarter valued at about $16,341,405,000. Finally, Amundi lifted its stake in shares of Amazon.com by 3.9% during the 2nd quarter. Amundi now owns 63,822,242 shares of the e-commerce giant's stock worth $15,211,393,000 after buying an additional 2,421,739 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com Stock Performance

Shares of NASDAQ:AMZN opened at $254.08 on Thursday. Amazon.com, Inc. has a 12-month low of $196.00 and a 12-month high of $287.20. The company's 50 day moving average price is $257.59 and its two-hundred day moving average price is $251.19. The firm has a market cap of $2.74 trillion, a PE ratio of 20.44, a PEG ratio of 2.00 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly 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. The company had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm's quarterly revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.68 earnings per share. Equities research analysts predict that Amazon.com, Inc. will post 8.03 earnings per share for the current year.

Insider Activity

In other news, CEO Douglas J. Herrington sold 6,362 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the sale, the chief executive officer directly owned 476,681 shares of the company's stock, valued at approximately $123,465,145.81. This represents a 1.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $2,404,950.66. Following the sale, the senior vice president directly owned 41,190 shares in the company, valued at approximately $10,699,926.30. This trade represents a 18.35% decrease in their ownership of the stock. 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 90 days, insiders have sold 71,589 shares of company stock worth $18,580,515. 8.90% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on AMZN. Citizens Jmp reaffirmed a "market outperform" rating and set a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. TD Cowen reiterated a "buy" rating and issued a $350.00 price target on shares of Amazon.com in a research note on Monday, October 5th. Pivotal Research reissued a "buy" rating and issued a $333.00 price target (up from $320.00) on shares of Amazon.com in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $325.00 price objective (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Amazon.com in a research report on Monday, August 3rd. Fifty-six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $322.53.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS remains the key bullish catalyst. Reports highlight a $496 billion AWS backlog, cloud margins near 39%, and continued demand for AI infrastructure. Amazon also said its custom-chip and AI businesses each surpassed $25 billion, supporting the case that Trainium and Inferentia could eventually reduce reliance on Nvidia GPUs. AWS Backlog and Cloud Margins
• Positive Sentiment: Amazon is expanding its AI ecosystem. The company is reportedly considering a roughly $7 billion acquisition of Decart, whose software helps run AI workloads across Nvidia and Amazon chips. The deal could accelerate Trainium adoption and improve AWS’s competitive position. Amazon Decart AI Deal
• Positive Sentiment: Analyst fundamentals remain supportive. Erste Group raised its FY2027 EPS estimate to $10.71 from $10.54, while Amazon’s Prime Video sports strategy could increase engagement, retention and advertising opportunities. Amazon Prime Video Sports Strategy
• Neutral Sentiment: Investor positioning may amplify volatility. Amazon was reportedly the most widely owned hedge-fund stock in September, creating potential support but also increasing the risk of crowded-trade selling if earnings or AWS growth disappoints. Amazon Hedge Fund Ownership
• Negative Sentiment: AI investment is pressuring cash flow. Amazon’s planned spending of roughly $200 billion to $220 billion raises concerns about capital intensity, returns on invested capital and near-term free cash flow, even as operating cash flow improves. Amazon AI Spending
• Negative Sentiment: Regulatory and execution risks increased. Lawmakers asked the FAA to conduct a site-specific environmental review of Amazon’s proposed Massachusetts drone hub, citing noise, privacy, safety and environmental concerns. Amazon also recalled more than 112,000 bottles of acetaminophen sold through its platform. FAA Review of Amazon Drone Hub
• Negative Sentiment: New hardware faces market skepticism. Amazon’s $499.99-plus Alexa Tablet 12 Pro moves the company into a higher-priced segment against Apple’s iPad, while Apple’s new smart-home products intensify competition. Amazon Alexa Tablet Launch

Amazon.com Profile

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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