Amazon.com, Inc. $AMZN Stock Sold by Cohen Klingenstein LLC

Key Points

• Cohen Klingenstein LLC reduced its Amazon stake by 0.5%, selling 2,799 shares and retaining 517,025 shares valued at approximately $128.8 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon’s outlook is supported by accelerating AWS and AI-infrastructure demand, Trainium chip cost savings, advertising, automation and logistics opportunities. However, its $220 billion investment plan is pressuring free cash flow and raising concerns about the timing of AI-related returns.
• Wall Street remains broadly bullish, with a “Moderate Buy” consensus and an average price target of $322.53 versus the reported share price of $248. Investors are watching the October 29 earnings report for updates on AWS growth, margins, capital spending and cash flow.

Cohen Klingenstein LLC lessened its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 0.5% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 517,025 shares of the e-commerce giant's stock after selling 2,799 shares during the period. Amazon.com comprises 4.5% of Cohen Klingenstein LLC's investment portfolio, making the stock its 8th largest holding. Cohen Klingenstein LLC's holdings in Amazon.com were worth $128,817,000 as of its most recent filing with the Securities and Exchange Commission.

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

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

Insider Buying and Selling at Amazon.com

In related news, SVP David Zapolsky sold 9,258 shares of the stock in a transaction that occurred 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 transaction, the senior vice president owned 41,190 shares in the company, valued at approximately $10,699,926.30. This represents a 18.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $606,860.43. Following the transaction, the vice president directly owned 119,780 shares in the company, valued at approximately $31,024,217.80. The trade was a 1.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 71,589 shares of company stock worth $18,580,515 over the last quarter. Insiders own 8.90% of the company's stock.

Wall Street Analyst Weigh In

AMZN has been the subject of several recent analyst reports. DA Davidson reaffirmed a "neutral" rating and issued a $250.00 target price on shares of Amazon.com in a research report on Friday, July 31st. Mizuho set a $330.00 price target on Amazon.com and gave the company an "outperform" rating in a research report on Friday, July 31st. Piper Sandler reissued an "overweight" rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Wedbush raised their price objective on Amazon.com from $293.00 to $310.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Finally, Telsey Advisory Group set a $335.00 target price on Amazon.com and gave the company an "outperform" rating in a research note on Friday, July 31st. Fifty-seven 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 has a consensus rating of "Moderate Buy" and an average target price of $322.53.

Amazon.com Price Performance

AMZN opened at $248.00 on Friday. The stock has a market cap of $2.68 trillion, a price-to-earnings ratio of 19.95, a PEG ratio of 2.04 and a beta of 1.45. Amazon.com, Inc. has a 1 year low of $196.00 and a 1 year high of $287.20. The company has a current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23. The stock has a fifty day moving average price of $255.56 and a 200 day moving average price of $253.29.

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

About Amazon.com

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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