Professional Advisory Services Inc. Sells 9,034 Shares of Amazon.com, Inc. $AMZN

Key Points

• Professional Advisory Services Inc. reduced its Amazon stake by 6.2%, selling 9,034 shares and retaining 135,930 shares valued at approximately $33.9 million. Amazon remains the firm’s sixth-largest portfolio holding, representing about 4% of its portfolio.
• Amazon reported a strong quarter, with earnings of $5.75 per share and revenue of $200.61 billion, exceeding analyst expectations; revenue increased 19.6% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $322.53.
• Amazon’s AI and AWS expansion remains a key growth catalyst, but heavy planned capital spending of roughly $200 billion to $220 billion could pressure free cash flow. Institutional investors own 72.2% of the company, while insiders sold shares worth about $18.6 million during the quarter.

Professional Advisory Services Inc. lowered its position in shares of Amazon.com, Inc. (NASDAQ:AMZN) by 6.2% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 135,930 shares of the e-commerce giant's stock after selling 9,034 shares during the period. Amazon.com makes up approximately 4.0% of Professional Advisory Services Inc.'s portfolio, making the stock its 6th largest position. Professional Advisory Services Inc.'s holdings in Amazon.com were worth $33,867,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in the company. Auto Owners Insurance Co raised its stake in shares of Amazon.com by 27,376.7% in the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after purchasing an additional 98,090,585 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Amazon.com during the second quarter valued at $22,218,775,000. Bank of New York Mellon Corp purchased a new stake in shares of Amazon.com during the second quarter valued at $16,341,405,000. Legal & General Group Plc purchased a new stake in shares of Amazon.com during the second quarter valued at $12,831,376,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Amazon.com during the second quarter valued at $6,631,466,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

Amazon.com Stock Down 1.7%

Amazon.com stock opened at $254.08 on Thursday. The stock has a market cap of $2.74 trillion, a PE ratio of 20.44, a price-to-earnings-growth ratio of 2.00 and a beta of 1.45. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. Amazon.com, Inc. has a one year low of $196.00 and a one year high of $287.20. The stock has a fifty day moving average of $257.59 and a 200 day moving average of $251.19.

Amazon.com (NASDAQ:AMZN - Get Free Report) last posted its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating analysts' consensus estimates of $1.82 by $3.93. The company had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%. Amazon.com's revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.68 earnings per share. As a group, sell-side analysts predict that Amazon.com, Inc. will post 8.03 EPS for the current year.

Insider Buying and Selling at Amazon.com

In other news, CEO Matthew Garman sold 14,541 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.06, for a total value of $3,766,991.46. Following the transaction, the chief executive officer owned 17,794 shares in the company, valued at $4,609,713.64. This represents a 44.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 stock was sold at an average price of $259.01, for a total transaction of $606,860.43. Following the completion of 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 71,589 shares of company stock worth $18,580,515. 8.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research firms recently commented on AMZN. Sanford C. Bernstein reiterated an "outperform" rating and issued a $320.00 price objective (up from $315.00) on shares of Amazon.com in a report on Friday, July 31st. Zacks Research cut shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. Citigroup restated a "market outperform" rating on shares of Amazon.com in a research note on Friday, August 14th. Telsey Advisory Group set a $335.00 price target on shares of Amazon.com and gave the company an "outperform" rating in a report on Friday, July 31st. Finally, DA Davidson reiterated a "neutral" rating and issued a $250.00 price target on shares of Amazon.com in a research note on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $322.53.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: AWS remains the key bullish catalyst. Reports highlight a $496 billion AWS backlog, cloud margins near 39%, and continued demand for AI infrastructure. Amazon also said its custom-chip and AI businesses each surpassed $25 billion, supporting the case that Trainium and Inferentia could eventually reduce reliance on Nvidia GPUs. AWS Backlog and Cloud Margins
• Positive Sentiment: Amazon is expanding its AI ecosystem. The company is reportedly considering a roughly $7 billion acquisition of Decart, whose software helps run AI workloads across Nvidia and Amazon chips. The deal could accelerate Trainium adoption and improve AWS’s competitive position. Amazon Decart AI Deal
• Positive Sentiment: Analyst fundamentals remain supportive. Erste Group raised its FY2027 EPS estimate to $10.71 from $10.54, while Amazon’s Prime Video sports strategy could increase engagement, retention and advertising opportunities. Amazon Prime Video Sports Strategy
• Neutral Sentiment: Investor positioning may amplify volatility. Amazon was reportedly the most widely owned hedge-fund stock in September, creating potential support but also increasing the risk of crowded-trade selling if earnings or AWS growth disappoints. Amazon Hedge Fund Ownership
• Negative Sentiment: AI investment is pressuring cash flow. Amazon’s planned spending of roughly $200 billion to $220 billion raises concerns about capital intensity, returns on invested capital and near-term free cash flow, even as operating cash flow improves. Amazon AI Spending
• Negative Sentiment: Regulatory and execution risks increased. Lawmakers asked the FAA to conduct a site-specific environmental review of Amazon’s proposed Massachusetts drone hub, citing noise, privacy, safety and environmental concerns. Amazon also recalled more than 112,000 bottles of acetaminophen sold through its platform. FAA Review of Amazon Drone Hub
• Negative Sentiment: New hardware faces market skepticism. Amazon’s $499.99-plus Alexa Tablet 12 Pro moves the company into a higher-priced segment against Apple’s iPad, while Apple’s new smart-home products intensify competition. Amazon Alexa Tablet Launch

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon's major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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