Tran Capital Management L.P. Decreases Position in Amazon.com, Inc. $AMZN

Key Points

• Tran Capital Management trimmed its Amazon position by 5.2% in Q4, selling 14,110 shares to hold 257,804 shares worth $59.5M, representing about 7.1% of the fund and its third-largest holding.
• Amazon has fresh strategic upside — including a $12B Globalstar deal and new AWS wins — and broad analyst support (average rating "Moderate Buy" with a $287.29 price target), but faces near-term risks from seller ad boycotts and concerns the stock may be overbought.
• Insider selling has been notable: CEO Andrew Jassy sold 19,872 shares (~$4.08M) and insiders disposed of 93,186 shares (~$19.9M) over the last three months, leaving insiders with roughly 9.7% ownership.

Tran Capital Management L.P. decreased its holdings in Amazon.com, Inc. (NASDAQ:AMZN - Free Report) by 5.2% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 257,804 shares of the e-commerce giant's stock after selling 14,110 shares during the period. Amazon.com makes up about 7.1% of Tran Capital Management L.P.'s portfolio, making the stock its 3rd biggest position. Tran Capital Management L.P.'s holdings in Amazon.com were worth $59,506,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of AMZN. American Capital Advisory LLC lifted its holdings in Amazon.com by 63.9% during the 3rd quarter. American Capital Advisory LLC now owns 8,081 shares of the e-commerce giant's stock worth $1,774,000 after buying an additional 3,152 shares during the period. Compagnie Lombard Odier SCmA bought a new position in shares of Amazon.com in the 3rd quarter worth about $451,642,000. Baltimore Washington Financial Advisors Inc. lifted its stake in shares of Amazon.com by 1.9% in the 3rd quarter. Baltimore Washington Financial Advisors Inc. now owns 239,862 shares of the e-commerce giant's stock valued at $52,667,000 after purchasing an additional 4,558 shares during the period. Wealthfront Advisers LLC boosted its position in shares of Amazon.com by 3.9% during the 3rd quarter. Wealthfront Advisers LLC now owns 1,145,151 shares of the e-commerce giant's stock valued at $251,441,000 after purchasing an additional 42,707 shares in the last quarter. Finally, Pettee Investors Inc. boosted its position in shares of Amazon.com by 16.9% during the 3rd quarter. Pettee Investors Inc. now owns 19,623 shares of the e-commerce giant's stock valued at $4,309,000 after purchasing an additional 2,838 shares in the last quarter. Institutional investors and hedge funds own 72.20% of the company's stock.

Amazon.com Price Performance

Shares of NASDAQ:AMZN opened at $249.70 on Friday. The company has a quick ratio of 0.88, a current ratio of 1.05 and a debt-to-equity ratio of 0.16. Amazon.com, Inc. has a twelve month low of $165.29 and a twelve month high of $258.60. The stock's 50 day moving average is $212.95 and its 200-day moving average is $224.88. The firm has a market capitalization of $2.69 trillion, a price-to-earnings ratio of 34.83, a PEG ratio of 1.86 and a beta of 1.38.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Thursday, February 5th. The e-commerce giant reported $1.95 earnings per share for the quarter, missing analysts' consensus estimates of $1.97 by ($0.02). Amazon.com had a return on equity of 21.87% and a net margin of 10.83%.The firm had revenue of $213.39 billion for the quarter, compared to analyst estimates of $211.02 billion. During the same period in the previous year, the company earned $1.86 earnings per share. Amazon.com's revenue for the quarter was up 13.6% compared to the same quarter last year. Sell-side analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

Amazon.com News Roundup

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

• Positive Sentiment: Globalstar acquisition reinforces Amazon’s LEO/satellite strategy and prompted an immediate market re-rate; analysts and some banks called the deal strategic for Amazon’s Project Kuiper/LEO ambitions. Amazon’s $12B Globalstar Acquisition Paid for Itself
• Positive Sentiment: AWS wins new high-profile media/AI customers (Fox named AWS its preferred AI cloud provider), validating AWS’s enterprise AI momentum and revenue runway. Fox chooses AWS as preferred AI cloud provider
• Positive Sentiment: NiSource expanded a power agreement with Amazon to speed energy delivery to data centers — a small but tangible operational tailwind for AWS capacity expansion. NiSource signs long-term power deal
• Positive Sentiment: Wall Street and notable investors are doubling down: several firms reaffirmed buy ratings and investors like Brad Gerstner have been buying AMZN, supporting sentiment and multiple expansion. AI bull Brad Gerstner buying AMZN
• Neutral Sentiment: Management and media narratives: Jim Cramer and other pundits highlighted Amazon’s long-term opportunity, and Amazon promoted theatrical releases (CinemaCon) as a content/distribution play — strategic but longer‑dated. Cramer highlights Amazon
• Neutral Sentiment: Amazon-backed X‑Energy filed to raise up to $800M — underscores Bezos/AMZN ecosystem investments (energy/nuclear), but indirect to near-term earnings. X-Energy IPO filing
• Negative Sentiment: Marketplace friction: hundreds of large sellers staged a one‑day ad boycott protesting payout and ad-payment changes plus a temporary 3.5% fuel surcharge — a reputational and short‑term revenue risk for Amazon’s retail/ad ecosystem. Sellers boycott Amazon ads
• Negative Sentiment: Customer backlash and regional pushback (Canadian sellers/customers revolting over fuel surcharge) could pressure order volumes or force policy reversals. Canadians revolt over fuel surcharge
• Negative Sentiment: Technical/valuation caution: some analysts flagged the stock as overbought after the rally and warned a pullback is possible despite the strategic positives. Amazon overbought concerns

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AMZN. Sanford C. Bernstein reiterated an "outperform" rating on shares of Amazon.com in a report on Friday, February 6th. Rosenblatt Securities restated a "buy" rating and set a $296.00 price target on shares of Amazon.com in a report on Wednesday. TD Securities raised shares of Amazon.com to a "buy" rating in a research report on Monday. Guggenheim reiterated a "buy" rating and issued a $300.00 price objective on shares of Amazon.com in a research note on Friday, February 6th. Finally, DA Davidson reissued a "neutral" rating and set a $175.00 target price (down from $300.00) on shares of Amazon.com in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-four have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $287.29.

Insider Activity at Amazon.com

In other news, CEO Andrew R. Jassy sold 19,872 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $205.18, for a total transaction of $4,077,336.96. Following the transaction, the chief executive officer directly owned 2,238,118 shares of the company's stock, valued at $459,217,051.24. This represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Shelley Reynolds sold 2,695 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $205.90, for a total value of $554,900.50. Following the transaction, the vice president directly owned 119,780 shares in the company, valued at $24,662,702. The trade was a 2.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 93,186 shares of company stock valued at $19,921,739 over the last three months. 9.70% of the stock is currently owned by company insiders.

Amazon.com Profile

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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