Amazon.com, Inc. $AMZN Stock: First Interstate Bank Reduces Holdings

Key Points

• First Interstate Bank trimmed its Amazon stake by 2.8% in the third quarter, selling 1,888 shares and ending with 66,744 shares valued at about $16.6 million.
• Institutional investors and hedge funds own 72.2% of Amazon shares. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $321.74.
• Amazon’s latest quarter beat neither earnings nor revenue estimates: EPS was $1.89 versus $1.97 expected, while revenue was $201.94 billion against a $202.22 billion forecast; revenue still grew 12.1% year over year.

First Interstate Bank lowered its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 2.8% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 66,744 shares of the e-commerce giant's stock after selling 1,888 shares during the quarter. Amazon.com accounts for about 0.9% of First Interstate Bank's portfolio, making the stock its 21st largest position. First Interstate Bank's holdings in Amazon.com were worth $16,629,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also modified their holdings of AMZN. Bank of America Corp DE purchased a new position in shares of Amazon.com during the second quarter worth about $22,218,775,000. Bank of New York Mellon Corp acquired a new stake in shares of Amazon.com during the second quarter worth about $16,341,405,000. Legal & General Group Plc purchased a new stake in shares of Amazon.com in the 2nd quarter valued at about $12,831,376,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Amazon.com in the 2nd quarter valued at about $6,631,466,000. Finally, Jupiter Topco LLC acquired a new stake in shares of Amazon.com in the 2nd quarter valued at about $5,910,083,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

AMZN has been the topic of a number of research reports. Citigroup restated a "market outperform" rating on shares of Amazon.com in a research note on Friday, October 30th. Weiss Ratings reissued a "buy (b)" rating on shares of Amazon.com in a report on Friday, October 30th. Zacks Research downgraded Amazon.com from a "strong-buy" rating to a "hold" rating in a report on Monday, September 14th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $325.00 target price (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Susquehanna reaffirmed a "positive" rating on shares of Amazon.com in a report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-five have given a Buy rating and three have assigned 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 a consensus price target of $321.74.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 20,000 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 $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company's stock, valued at approximately $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $259.77, for a total value of $2,404,950.66. Following the completion of the sale, the senior vice president directly owned 41,190 shares of the company's stock, valued at approximately $10,699,926.30. This trade represents a 18.35% 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 90 days, insiders sold 71,589 shares of company stock valued at $18,545,595. 8.90% of the stock is owned by company insiders.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS growth and backlog support the AI investment case. AWS revenue grew 39.3% in the latest quarter, its fastest pace in nearly five years, while its reported backlog reached $578 billion. That contracted demand may help justify Amazon’s substantial infrastructure investment. Article: Andy Jassy Just Delivered Great News for Amazon Stock Investors
• Positive Sentiment: Anthropic’s planned IPO could highlight the value of Amazon’s stake and cloud relationship. Reports describe Amazon as a major investor and cloud provider to Anthropic; the proposed offering could put a substantial valuation on its stake, while Anthropic’s infrastructure commitments could also generate AWS business. Any stake valuation remains a paper estimate until shares trade. Article: Amazon and Google Will See Big Paydays from Anthropic IPO
• Positive Sentiment: UK approval expands Amazon’s drone-delivery opportunity. Regulatory clearance allows Amazon to extend eligible deliveries in Darlington to about 8,000 customers, providing a potential route to faster service and more efficient fulfillment. Article: UK aviation regulator clears Amazon for expanded drone delivery
• Neutral Sentiment: Ring’s new home-security devices and Amazon’s holiday promotions add product and seasonal-sales visibility, but their financial contribution is not yet clear. Article: Amazon's Ring launches flying camera, autonomous security robot
• Negative Sentiment: AI infrastructure spending remains a key risk. Amazon’s large capital-spending plans could pressure cash flow if cloud and AI demand do not translate into returns quickly enough; data-center power, permitting and cost concerns add uncertainty. Article: Amazon Faces a $1.2 Trillion AI Spending Question
• Negative Sentiment: Amazon agreed to pay $3 million to Arizona Prime members to resolve allegations related to its subscription-cancellation process, a modest financial cost but a potential reputational and regulatory concern. Article: Amazon agrees to pay $3M to Arizona Prime members

Amazon.com Stock Performance

Shares of AMZN opened at $270.87 on Wednesday. The stock has a market capitalization of $2.93 trillion, a P/E ratio of 21.90, a P/E/G ratio of 2.03 and a beta of 1.49. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.82 and a current ratio of 0.99. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The company's fifty day moving average is $254.19 and its two-hundred day moving average is $243.93.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a return on equity of 15.72% and a net margin of 16.90%. The firm had revenue of $201.94 billion for the quarter, compared to analysts' expectations of $202.22 billion. During the same period in the prior year, the company earned $1.95 earnings per share. The company's revenue for the quarter was up 12.1% on a year-over-year basis. On average, sell-side analysts predict that Amazon.com, Inc. will post 7.80 earnings per share for the current year.

About Amazon.com

Amazon.com, Inc. is a technology and e-commerce company founded by Jeff Bezos in 1994 as an online bookstore. It has since grown into a global business serving consumers, sellers, developers, enterprises and content creators. Amazon operates online stores and marketplaces, where it sells products directly and enables third-party sellers to reach customers. Its other businesses include Amazon Web Services, which provides cloud computing and related services; digital advertising; Prime memberships; and entertainment offerings such as streaming video and music.

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