Sumitomo Mitsui Trust Group Inc. Sells 1,270,369 Shares of Amazon.com, Inc. $AMZN

Key Points

• Sumitomo Mitsui Trust Group trimmed its Amazon stake by 4.9% in the first quarter, selling 1,270,369 shares and leaving it with 24.6 million shares valued at about $5.13 billion.
• Amazon continues to attract strong institutional support, with major holders like Vanguard, State Street, Geode Capital, and Norges Bank adding or maintaining large positions. About 72.2% of the stock is owned by institutional investors and hedge funds.
• Investor sentiment around Amazon is broadly positive ahead of its July 30 earnings report, driven by optimism over AWS growth, AI infrastructure spending, and potential margin expansion, while analysts maintain a Moderate Buy consensus target of $312.76.

Sumitomo Mitsui Trust Group Inc. decreased its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 4.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 24,620,350 shares of the e-commerce giant's stock after selling 1,270,369 shares during the period. Amazon.com comprises approximately 3.3% of Sumitomo Mitsui Trust Group Inc.'s investment portfolio, making the stock its 4th biggest holding. Sumitomo Mitsui Trust Group Inc. owned approximately 0.23% of Amazon.com worth $5,127,680,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Amazon.com by 1.1% in the first quarter. Vanguard Group Inc. now owns 832,274,556 shares of the e-commerce giant's stock valued at $158,348,557,000 after purchasing an additional 8,913,959 shares during the period. State Street Corp boosted its holdings in shares of Amazon.com by 1.8% during the 4th quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant's stock worth $89,708,913,000 after buying an additional 6,971,680 shares during the period. Geode Capital Management LLC grew its stake in Amazon.com by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant's stock valued at $51,753,622,000 after buying an additional 2,479,324 shares during the last quarter. Norges Bank acquired a new position in Amazon.com in the 4th quarter valued at about $32,868,735,000. Finally, Auto Owners Insurance Co raised its holdings 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 valued at $2,272,397,000 after acquiring an additional 98,090,585 shares during the period. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com News Roundup

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

• Positive Sentiment: Several articles highlighted Amazon’s AI buildout, including strong demand for its Trainium chips and a large AWS backlog, reinforcing the view that Amazon’s capex may translate into future earnings power. What Is Going on With Amazon Stock on Monday?
• Positive Sentiment: Analysts are increasingly optimistic ahead of Amazon’s July 30 earnings report, with expectations for AWS growth to accelerate and retail trends to remain solid, which supports the stock’s move higher. Amazon’s AI Spending Is About to Face Its Most Important AWS Test Yet
• Positive Sentiment: Multiple bullish pieces argued Amazon is undervalued and a “no-brainer” buy because AI infrastructure spending and cloud economics could drive a future margin inflection. Undervalued and Winning the AI Hyperscaler War: 3 Reasons Amazon is a No-Brainer Right Now
• Positive Sentiment: Investor coverage also pointed to continued support from large holders and prominent investors such as Ray Dalio and David Tepper, which can reinforce confidence in AMZN as an AI megacap winner. Billionaire Investor David Tepper’s Top 5 Stocks
• Neutral Sentiment: One article noted Amazon closed another facility and cut nearly 500 jobs, but it appears tied to logistics optimization rather than a major strategic setback. Amazon closes another major facility, nearly 500 workers affected
• Neutral Sentiment: Some commentary questioned Amazon’s free cash flow because of heavy AI capital spending, but these concerns were outweighed today by optimism about future AWS and chip returns. Big Tech Is Minting Mountains of Cash — But Amazon’s Is Vanishing

Insider Activity

In other news, CEO Andrew R. Jassy sold 20,000 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $263.42, for a total transaction of $5,268,400.00. Following the sale, the chief executive officer directly owned 2,205,766 shares of the company's stock, valued at approximately $581,042,879.72. This represents a 0.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $262.38, for a total value of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares in the company, valued at $31,427,876.40. The trade was a 1.93% 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 quarter, insiders sold 144,274 shares of company stock worth $38,716,204. 8.90% of the stock is owned by insiders.

Amazon.com Stock Up 1.1%

NASDAQ AMZN opened at $249.99 on Tuesday. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The company has a market cap of $2.69 trillion, a price-to-earnings ratio of 29.90, a PEG ratio of 1.84 and a beta of 1.46. The company has a 50 day moving average of $250.45 and a 200-day moving average of $236.08. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $278.56.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business had revenue of $181.52 billion for the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter in the prior year, the business posted $1.59 earnings per share. The firm's quarterly revenue was up 16.6% compared to the same quarter last year. On average, equities research analysts expect that Amazon.com, Inc. will post 7.75 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AMZN. Weiss Ratings upgraded Amazon.com from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, May 6th. Needham & Company LLC increased their target price on Amazon.com from $265.00 to $300.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Jefferies Financial Group reissued a "buy" rating on shares of Amazon.com in a report on Thursday, June 18th. DA Davidson upped their price objective on Amazon.com from $175.00 to $250.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Finally, Telsey Advisory Group increased their price objective on Amazon.com from $300.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $312.76.

About Amazon.com

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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