PCM Encore LLC Acquires New Holdings in Amazon.com, Inc. $AMZN

Key Points

• PCM Encore LLC acquired 51,255 Amazon shares worth approximately $12.2 million in the second quarter, making Amazon its eighth-largest holding and 2.1% of its portfolio.
• Institutional investors own 72.2% of Amazon, while insiders have sold $18.6 million of stock over the past 90 days under pre-arranged trading plans.
• Amazon reported strong quarterly results, with revenue up 19.6% year over year and EPS well above estimates. Analysts maintain a generally bullish outlook, with a “Moderate Buy” consensus and an average price target of $323.26, though AI spending is pressuring free cash flow.

PCM Encore LLC purchased a new stake in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 51,255 shares of the e-commerce giant's stock, valued at approximately $12,216,000. Amazon.com accounts for approximately 2.1% of PCM Encore LLC's investment portfolio, making the stock its 8th biggest holding.

Several other hedge funds and other institutional investors have also recently modified their holdings of AMZN. Auto Owners Insurance Co increased its stake in Amazon.com by 27,376.7% in the 4th quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after buying an additional 98,090,585 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Amazon.com in the second quarter worth about $16,341,405,000. Amundi boosted its stake in shares of Amazon.com by 14.1% in the first quarter. Amundi now owns 61,400,503 shares of the e-commerce giant's stock worth $12,787,883,000 after acquiring an additional 7,590,952 shares during the period. Invesco Ltd. grew its position in shares of Amazon.com by 3.3% during the fourth quarter. Invesco Ltd. now owns 59,604,857 shares of the e-commerce giant's stock worth $13,757,993,000 after purchasing an additional 1,879,630 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its position in shares of Amazon.com by 23.0% during the first quarter. Dimensional Fund Advisors LP now owns 39,029,984 shares of the e-commerce giant's stock worth $8,126,338,000 after purchasing an additional 7,305,560 shares in the last quarter. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Amazon.com

In related news, SVP David Zapolsky sold 9,258 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $259.77, for a total transaction 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. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 20,000 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $5,180,200.00. Following the transaction, the chief executive officer owned 2,235,766 shares of the company's stock, valued at approximately $579,085,751.66. The trade was a 0.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 71,589 shares of company stock valued at $18,568,785. 8.90% of the stock is owned by company insiders.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Amazon agreed to a long-term deal with Generac to supply backup generators for its data centers. Initial deliveries are expected to total approximately $2.4 billion in 2027 and 2028, while Amazon received warrants to purchase up to roughly $340 million of Generac stock. The agreement signals continued expansion of Amazon’s AI and cloud infrastructure. Generac, Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: Amazon reportedly plans to expand its same-day delivery network from 85 locations to more than 1,000 hubs by 2031, potentially placing facilities within 10 miles of most U.S. Prime members. The strategy could improve delivery speed and strengthen Amazon’s retail moat. Amazon's next move could reshape how America shops
• Positive Sentiment: Amazon launched Alexa+ in India with Hindi-language support, expanding its conversational-AI ecosystem in a major growth market. Investors also continue to focus on strong AWS demand, advertising growth and Amazon’s stake in Anthropic as potential longer-term catalysts. Amazon launches Alexa+ in India with Hindi support
• Neutral Sentiment: Amazon raised minimum starting pay for U.S. core-operations employees to $20 per hour and added grocery and banking benefits. The move may support hiring and retention, but management expects the program to cost about $1.5 billion, creating near-term margin pressure. Amazon raises minimum hourly pay by $1 to $20
• Negative Sentiment: AWS said it cannot restore access to a Bahrain facility and one UAE availability zone damaged during the Iran conflict. The disclosure raises concerns about data recovery, customer trust and possible financial or regulatory consequences. Amazon's AWS is unable to restore access
• Negative Sentiment: Analyst commentary highlighted that AI-related capital expenditures are accelerating AWS growth but weighing on free cash flow and increasing reliance on debt. Separately, Zacks downgraded AMZN from “strong buy” to “hold,” adding to valuation and execution concerns. Amazon's AI Bet Is Paying Off in Revenues

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on AMZN shares. Zacks Research cut shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a research report on Monday. KeyCorp upped their target price on shares of Amazon.com from $335.00 to $350.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Bank of America raised their target price on shares of Amazon.com from $310.00 to $320.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Barclays reiterated an "overweight" rating and issued a $365.00 price target (up from $330.00) on shares of Amazon.com in a report on Friday, July 31st. Finally, TD Cowen reiterated a "buy" rating and issued a $350.00 price target (up from $340.00) on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Amazon.com currently has an average rating of "Moderate Buy" and an average price target of $323.26.

Amazon.com Price Performance

Amazon.com stock opened at $245.96 on Thursday. 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. The firm has a 50-day moving average price of $255.84 and a 200-day moving average price of $245.25. The firm has a market capitalization of $2.65 trillion, a PE ratio of 19.79, a price-to-earnings-growth ratio of 1.92 and a beta of 1.44.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. During the same period in the prior year, the firm posted $1.68 EPS. The firm's revenue was up 19.6% compared to the same quarter last year. As a group, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current year.

About Amazon.com

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.