Sepio Capital LP Buys 3,749 Shares of Amazon.com, Inc. $AMZN

Key Points

• Sepio Capital increased its Amazon stake by 4.5%, buying 3,749 shares in the third quarter to hold 87,336 shares valued at $21.76 million.
• Amazon’s latest quarterly results slightly missed estimates: EPS was $1.89 versus $1.97 expected, and revenue was $201.94 billion versus $202.22 billion expected, although revenue grew 12.1% year over year.
• Growth prospects and investment costs remain in focus: AWS and advertising are highlighted as potential growth drivers, while AI and data-center spending raise cash-flow and cost concerns. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $321.74.

Sepio Capital LP increased its position in shares of Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 4.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 87,336 shares of the e-commerce giant's stock after purchasing an additional 3,749 shares during the period. Amazon.com accounts for about 0.9% of Sepio Capital LP's investment portfolio, making the stock its 24th largest holding. Sepio Capital LP's holdings in Amazon.com were worth $21,760,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Bank of America Corp DE acquired a new stake in shares of Amazon.com in the second quarter valued at $22,218,775,000. Bank of New York Mellon Corp bought a new position in Amazon.com during the second quarter valued at about $16,341,405,000. Legal & General Group Plc bought a new position in Amazon.com during the second quarter valued at about $12,831,376,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Amazon.com during the second quarter worth about $6,631,466,000. Finally, Jupiter Topco LLC acquired a new position in Amazon.com during the second quarter worth about $5,910,083,000. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com News Roundup

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

• Positive Sentiment: AWS growth could be a major long-term catalyst. CEO Andy Jassy sees AWS potentially becoming a $1 trillion business over the next decade, with strong AI demand supporting rapid growth. That outlook may help reassure investors that Amazon’s large infrastructure investments can generate substantial future revenue. Article: Amazon's CEO Andy Jassy Just Announced Huge News for Amazon Investors
• Positive Sentiment: Advertising remains another growth engine. Amazon’s ad revenue grew 12% in the latest quarter, and management expects high-teens growth next, offering a potential boost beyond retail and cloud. Article: Not Alphabet. Not Meta. This Is the Digital Advertising Stock I'd Buy Right Now
• Neutral Sentiment: Amazon is testing text-based shopping with Alexa for selected U.S. customers. The AI assistant can help find products, build carts and complete purchases; the feature could improve shopping convenience, though its impact on sales is not yet clear. Article: Amazon rolls out text-based shopping through Alexa
• Negative Sentiment: Spending and cash-flow concerns remain a near-term overhang. Despite record operating margins, investors are scrutinizing the cash required for Amazon’s AI and data-center buildout. Its latest quarterly EPS and revenue also came in slightly below consensus estimates. Article: Amazon Just Delivered a Record-Breaking Quarter. But There’s One Number Investors Shouldn’t Ignore
• Negative Sentiment: Potential data-center rules could raise costs. Midterm election results have increased attention on restrictions that could require Amazon and other tech companies to pay more of the power and grid costs associated with their data centers, potentially complicating expansion plans. Article: Microsoft and Google Face a New Bill as Data Centers Have to Pay Their Own Costs

Insider Activity at Amazon.com

In other news, CEO Douglas J. Herrington sold 1,000 shares of Amazon.com stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $243.47, for a total value of $243,470.00. Following the transaction, the chief executive officer directly owned 473,681 shares of the company's stock, valued at $115,327,113.07. This trade represents a 0.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,258 shares of the business's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $259.77, for a total transaction of $2,404,950.66. Following the sale, the senior vice president owned 41,190 shares in the company, valued at $10,699,926.30. This represents a 18.35% 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. In the last ninety days, insiders sold 71,589 shares of company stock valued at $18,545,595. Corporate insiders own 8.90% of the company's stock.

Amazon.com Trading Down 0.3%

Shares of Amazon.com stock traded down $0.91 on Friday, reaching $259.30. 42,467,151 shares of the company were exchanged, compared to its average volume of 42,636,872. Amazon.com, Inc. has a fifty-two week low of $196.00 and a fifty-two week high of $287.20. The firm has a market capitalization of $2.80 trillion, a price-to-earnings ratio of 20.96, a price-to-earnings-growth ratio of 1.86 and a beta of 1.49. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 0.28. The stock has a fifty day moving average price of $253.96 and a 200-day moving average price of $243.57.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share for the quarter, missing analysts' consensus estimates of $1.97 by ($0.08). The company had revenue of $201.94 billion during the quarter, compared to analyst estimates of $202.22 billion. Amazon.com had a net margin of 16.90% and a return on equity of 15.72%. The company's revenue for the quarter was up 12.1% compared to the same quarter last year. During the same quarter last year, the business earned $1.95 EPS. On average, analysts expect that Amazon.com, Inc. will post 7.80 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Susquehanna reiterated a "positive" rating on shares of Amazon.com in a research report on Friday, October 30th. KeyCorp set a $345.00 price objective on shares of Amazon.com and gave the company an "overweight" rating in a research report on Friday, October 30th. Tigress Financial reaffirmed a "buy" rating and issued a $385.00 price objective (up from $315.00) on shares of Amazon.com in a research note on Tuesday, October 6th. Bank of America reiterated a "buy" rating and issued a $317.00 target price on shares of Amazon.com in a report on Friday, October 30th. Finally, Truist Financial set a $390.00 target price on shares of Amazon.com in a research note on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fifty-five have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $321.74.

Amazon.com Company Profile

Amazon.com, Inc is a technology and e-commerce company founded by Jeff Bezos in 1994 as an online bookstore. It has since grown into a global business serving consumers, sellers, developers, enterprises and content creators.

Amazon operates online stores and marketplaces, where it sells products directly and enables third-party sellers to reach customers. Its other businesses include Amazon Web Services, which provides cloud computing and related services; digital advertising; Prime memberships; and entertainment offerings such as streaming video and music.

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.