Aurora Investment Managers LLC. Boosts Stock Position in Amazon.com, Inc. $AMZN

Key Points

• Aurora Investment Managers increased its Amazon position by 23.4% in the second quarter, adding 5,256 shares to own 27,702 shares valued at approximately $6.6 million. Amazon represents about 4% of the fund’s portfolio.
• Amazon reported strong quarterly results, with EPS of $5.75 versus the $1.82 consensus estimate and revenue of $200.61 billion, up 19.6% year over year and above analysts’ expectations.
• Investor sentiment remains favorable: Amazon has a “Moderate Buy” consensus rating and a $322.56 average price target, while AWS and AI growth support the outlook despite concerns about elevated infrastructure spending and free cash flow pressure.

Aurora Investment Managers LLC. increased its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 23.4% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 27,702 shares of the e-commerce giant's stock after purchasing an additional 5,256 shares during the quarter. Amazon.com makes up approximately 4.0% of Aurora Investment Managers LLC.'s holdings, making the stock its 14th largest holding. Aurora Investment Managers LLC.'s holdings in Amazon.com were worth $6,602,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Red Crane Wealth Management LLC boosted its holdings in Amazon.com by 2.3% in the first quarter. Red Crane Wealth Management LLC now owns 1,663 shares of the e-commerce giant's stock valued at $346,000 after acquiring an additional 38 shares in the last quarter. Robinson Smith Wealth Advisors LLC increased its stake in shares of Amazon.com by 0.7% during the first quarter. Robinson Smith Wealth Advisors LLC now owns 5,509 shares of the e-commerce giant's stock valued at $1,147,000 after purchasing an additional 40 shares in the last quarter. Sfam LLC raised its stake in Amazon.com by 3.4% during the first quarter. Sfam LLC now owns 1,224 shares of the e-commerce giant's stock valued at $255,000 after buying an additional 40 shares during the last quarter. Measured Risk Portfolios Inc. raised its position in shares of Amazon.com by 3.4% in the 1st quarter. Measured Risk Portfolios Inc. now owns 1,206 shares of the e-commerce giant's stock worth $251,000 after purchasing an additional 40 shares during the last quarter. Finally, CoreFirst Bank & Trust grew its position in Amazon.com by 1.1% during the 1st quarter. CoreFirst Bank & Trust now owns 3,620 shares of the e-commerce giant's stock valued at $754,000 after purchasing an additional 40 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com Stock Performance

AMZN opened at $265.84 on Thursday. The company's 50 day moving average is $249.09 and its 200 day moving average is $239.06. The company has a market cap of $2.87 trillion, a price-to-earnings ratio of 21.39, a PEG ratio of 1.73 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 current ratio of 1.03, a quick ratio of 0.87 and a debt-to-equity ratio of 0.23.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its quarterly earnings data 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 return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion during the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the business posted $1.68 EPS. Amazon.com's revenue was up 19.6% on a year-over-year basis. On average, equities research analysts predict that Amazon.com, Inc. will post 8.05 EPS for the current year.

Insider Buying and Selling

In related news, CEO Douglas J. Herrington sold 3,741 shares of Amazon.com stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $262.76, for a total transaction of $982,985.16. Following the sale, the chief executive officer owned 467,138 shares of the company's stock, valued at approximately $122,745,180.88. This trade represents a 0.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of Amazon.com stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the completion of the sale, the senior vice president owned 41,190 shares in the company, valued at approximately $11,060,750.70. This represents a 18.37% 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. Over the last quarter, insiders sold 16,011 shares of company stock valued at $4,256,608. Company insiders own 8.90% of the company's stock.

Key Amazon.com News

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

• Positive Sentiment: Prime Air expansion: Amazon plans to expand drone delivery to nearly 500 U.S. cities and towns by the end of 2026, roughly six times its current footprint. Deliveries could arrive in as little as 30 minutes for packages weighing up to five pounds. The move reinforces Amazon’s delivery advantage and supports efforts to compete with Walmart, FedEx and other logistics providers. Amazon to expand drone service to nearly 500 cities
• Positive Sentiment: AWS and AI momentum: AWS revenue reportedly grew 37% year over year to $42.2 billion in the latest quarter, its fastest growth in 18 quarters. Amazon also said its AWS AI business surpassed a $25 billion annualized revenue run rate, strengthening the case that AI workloads are accelerating cloud growth and could improve long-term earnings. Amazon's AI business passed a $25 billion run rate
• Positive Sentiment: Infrastructure investment: Amazon increased its planned investment in a northwest Louisiana data-center campus from $12 billion to approximately $18 billion, signaling sustained demand for AWS capacity and allowing the company to secure power and water infrastructure in advance of regional grid constraints. Amazon Plugs $18B Into the Southern Power Grid
• Positive Sentiment: Analyst support: Wall Street’s average price target implies substantial potential upside, with analysts citing improving earnings estimates and AWS reacceleration. Wall Street analysts think Amazon could surge
• Neutral Sentiment: Alexa+ availability: Amazon made its AI-powered Alexa+ available at no additional cost to Fire TV users without requiring Prime membership. The broader user base could support future engagement and monetization, although the immediate financial impact is unclear. Amazon makes Alexa+ free on Fire TV
• Negative Sentiment: Capital-spending risks: The rapid data-center and AI buildout may pressure free cash flow, depreciation and returns. AWS also faces rising competition from other cloud providers and specialized AI infrastructure companies.
• Negative Sentiment: Insider transaction: CEO Douglas Herrington sold 3,741 shares worth approximately $983,000 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 0.79%, making it a limited bearish signal. SEC insider transaction filing

Analyst Upgrades and Downgrades

AMZN has been the subject of a number of analyst reports. Mizuho set a $330.00 price objective on shares of Amazon.com and gave the company an "outperform" rating in a research note on Friday, July 31st. Barclays reiterated 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. TD Cowen reissued a "buy" rating and set a $350.00 price target (up from $340.00) on shares of Amazon.com in a research report on Friday, July 31st. Oppenheimer reissued an "outperform" rating on shares of Amazon.com in a research report on Friday, July 31st. Finally, Morgan Stanley restated an "overweight" rating and issued a $335.00 price objective (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Amazon.com currently has a consensus rating of "Moderate Buy" and a consensus price target of $322.56.

Amazon.com Company Profile

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.

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