Heartland Advisors Inc. Acquires New Stake in Amazon.com, Inc. $AMZN

Key Points

• Heartland Advisors acquired 19,478 Amazon shares during the second quarter, valued at approximately $4.64 million. Institutional investors collectively own 72.2% of Amazon’s stock.
• Amazon reported quarterly revenue of $200.61 billion, up 19.6% year over year, and earnings of $5.75 per share, exceeding analysts’ $1.82 consensus estimate.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $321.19, although Amazon’s CEO and CFO recently sold shares under pre-arranged Rule 10b5-1 plans.

Heartland Advisors Inc. bought a new position in shares of Amazon.com, Inc. (NASDAQ:AMZN) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 19,478 shares of the e-commerce giant's stock, valued at approximately $4,642,000.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Longfellow Investment Management Co. LLC acquired a new position in shares of Amazon.com in the second quarter valued at approximately $33,000. MilWealth Group LLC increased its stake in Amazon.com by 79.0% during the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant's stock worth $41,000 after buying an additional 79 shares during the period. Lifetime Wealth Management P.C. acquired a new stake in Amazon.com during the 4th quarter worth approximately $45,000. Prudent Man Investment Management Inc. lifted its holdings in Amazon.com by 87.7% during the 4th quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant's stock worth $53,000 after buying an additional 107 shares in the last quarter. Finally, Strategic Wealth Advisors LLC purchased a new position in Amazon.com in the 4th quarter valued at approximately $68,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Stock Up 2.1%

Shares of NASDAQ:AMZN opened at $251.19 on Friday. The firm has a 50 day simple moving average of $255.93 and a 200-day simple moving average of $245.54. Amazon.com, Inc. has a twelve month low of $196.00 and a twelve 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. The company has a market capitalization of $2.71 trillion, a PE ratio of 20.21, a P/E/G ratio of 1.91 and a beta of 1.44.

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, beating analysts' consensus estimates 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 last year, the firm posted $1.68 EPS. The company's revenue was up 19.6% on a year-over-year basis. On average, equities analysts predict that Amazon.com, Inc. will post 8.01 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Phillip Securities downgraded shares of Amazon.com from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. Wedbush increased their price objective on Amazon.com from $293.00 to $310.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Wolfe Research reiterated an "outperform" rating and issued a $315.00 target price on shares of Amazon.com in a report on Friday, July 31st. Weiss Ratings reissued a "buy (b)" rating on shares of Amazon.com in a research note on Monday, August 3rd. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $320.00 price target (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $321.19.

Amazon.com News Roundup

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

• Positive Sentiment: Amazon agreed to purchase backup generators from Generac, with initial deliveries valued at approximately $2.4 billion in 2027 and 2028 and potential total payments of up to $8 billion through 2033. Amazon also received warrants to buy up to about 1.69 million Generac shares. The agreement underscores the scale of Amazon Web Services’ data-center expansion and its efforts to bypass strained power grids. Generac, Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: Amazon reportedly plans to expand same-day delivery hubs from 85 to more than 1,000 by 2031, potentially placing facilities within 10 miles of about 80% of U.S. Prime members. The investment could help narrow Walmart’s proximity advantage and support faster, higher-frequency purchases. Amazon's next move could reshape how America shops
• Positive Sentiment: Management indicated AWS has reached a $169 billion annualized revenue run rate, highlighting continued demand for AI and traditional cloud services. Recent quarterly revenue also grew nearly 20% year over year, reinforcing the growth thesis. Amazon's Andy Jassy Just Made a Startling Prediction
• Neutral Sentiment: Amazon-owned Zoox is poised to expand its Las Vegas robotaxi fleet after Nevada’s 100-vehicle regulatory cap expires, creating a longer-term transportation opportunity but also exposing the business to intensifying competition and regulatory execution risk. Amazon-owned Zoox's 100-robotaxi limit in Nevada is about to disappear
• Neutral Sentiment: Amazon joined calls for stronger AI safety testing and industry-government standards. The stance may reduce regulatory risk, although it could increase compliance requirements over time. Amazon Urges Industry and Government Partnership on AI Safeguards
• Negative Sentiment: A fatal Amazon cargo-plane crash in Miami has placed the company’s air-cargo network and logistics oversight under scrutiny, raising potential operational, legal and reputational risks. A Deadly Amazon Cargo Plane Crash in Miami Puts its Air Network Under Scrutiny
• Negative Sentiment: Two senators asked the FTC to investigate whether Amazon’s Alexa for Shopping suppresses U.S.-made products or fails to flag misleading “Made in USA” claims, adding regulatory and compliance uncertainty. Amazon, Walmart chatbots attract senator ire over made in USA label snags
• Negative Sentiment: Amazon’s $1-per-hour wage increase and new benefits improve labor competitiveness but raise operating costs. Separately, surging AI capital expenditures are weighing on free cash flow and increasing reliance on debt financing. Amazon raises minimum hourly pay by $1 to $20 for US operations workers

Insider Buying and Selling

In other news, CEO Matthew Garman sold 14,541 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.06, for a total value of $3,766,991.46. Following the completion of the sale, the chief executive officer directly owned 17,794 shares of the company's stock, valued at approximately $4,609,713.64. The trade was a 44.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the completion of the sale, the chief financial officer directly owned 109,207 shares of the company's stock, valued at approximately $28,427,674.17. This trade represents a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,589 shares of company stock valued at $18,568,785 over the last ninety days. Company insiders own 8.90% of the company's stock.

Amazon.com Profile

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon's websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.

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