Amazon.com (NASDAQ:AMZN) Shares Down 2.2% After Insider Selling

Key Points

• Amazon shares fell 2.2% to $260.21, with trading volume 79% above average. CEO Douglas Herrington sold 1,000 shares for $243,470 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 0.21%.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $321.74; recent targets include $370 from Goldman Sachs and $280 from Cantor Fitzgerald.
• Amazon’s latest quarter slightly missed expectations: EPS was $1.89 versus a $1.97 consensus, and revenue was $201.94 billion versus $202.22 billion expected, though revenue grew 12.1% year over year.

Amazon.com, Inc. (NASDAQ:AMZN - Get Free Report) was down 2.2% during trading on Thursday following insider selling activity. The company traded as low as $252.27 and last traded at $260.21. Approximately 83,633,127 shares changed hands during trading, an increase of 79% from the average session volume of 46,709,336 shares. The stock had previously closed at $266.03.

Specifically, CEO Douglas Herrington sold 1,000 shares of Amazon.com stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $243.47, for a total value of $243,470.00. Following the completion of the sale, the chief executive officer owned 473,681 shares of the company's stock, valued at approximately $115,327,113.07. This trade represents a 0.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on AMZN shares. The Goldman Sachs Group reaffirmed a "conviction-buy" rating and set a $370.00 price target on shares of Amazon.com in a report on Friday, October 30th. Piper Sandler reiterated an "overweight" rating on shares of Amazon.com in a report on Friday, October 30th. Cantor Fitzgerald decreased their target price on Amazon.com from $310.00 to $280.00 and set an "overweight" rating for the company in a research report on Friday, October 30th. Benchmark upped their target price on shares of Amazon.com from $370.00 to $400.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Finally, Pivotal Research reaffirmed a "buy" rating and set a $333.00 price target (up from $320.00) on shares of Amazon.com in a report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, fifty-five have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $321.74.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS growth and AI demand support the long-term outlook. AWS reportedly posted its fastest growth in nearly five years, and CEO Andy Jassy has outlined potential for roughly 40% revenue growth in 2027 and 2028. The growth opportunity may help explain the prior rally, though investors are looking for returns on the investment. Article: CEO Andy Jassy on AWS growth
• Positive Sentiment: Amazon added Uber Eats as a Prime delivery perk. Members can order restaurant meals through Amazon’s site or app, with free delivery on qualifying orders. The partnership could increase Prime engagement, although its near-term financial contribution is unclear. Article: Amazon Prime members are getting a new restaurant delivery perk
• Neutral Sentiment: New Alexa shopping tools expand functionality. Amazon added more than 100 Alexa for Shopping capabilities, including subscription management and list editing. These features may improve customer experience, but the immediate revenue effect is uncertain. Article: Amazon adds over 100 Alexa for Shopping functions
• Negative Sentiment: Spending and cash-flow concerns remain a key overhang. Amazon’s recent quarterly EPS and revenue came in slightly below consensus. Despite strong AWS momentum, large AI and data-center investments are raising questions about when spending will translate into cash returns. Article: Amazon and Alphabet slide
• Negative Sentiment: FTC allegations raise advertising-related risk. The FTC alleges Amazon misled advertisers about the reasons for higher ad prices during major shopping events. The claims could add regulatory and reputational pressure if substantiated. Article: FTC claims Amazon tripled ad prices

Amazon.com Stock Performance

The business has a 50-day moving average of $253.90 and a 200 day moving average of $243.32. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.99 and a quick ratio of 0.82. The company has a market cap of $2.81 trillion, a PE ratio of 21.04, a PEG ratio of 1.90 and a beta of 1.49.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.97 by ($0.08). Amazon.com had a return on equity of 15.72% and a net margin of 16.90%. The firm had revenue of $201.94 billion during the quarter, compared to analysts' expectations of $202.22 billion. During the same period in the previous year, the business posted $1.95 earnings per share. The company's revenue for the quarter was up 12.1% on a year-over-year basis. Equities research analysts anticipate that Amazon.com, Inc. will post 7.80 EPS for the current fiscal year.

Hedge Funds Weigh In On Amazon.com

Institutional investors and hedge funds have recently made changes to their positions in the business. Trust Asset Management LLC increased its position in Amazon.com by 3.3% in the second quarter. Trust Asset Management LLC now owns 107,563 shares of the e-commerce giant's stock worth $26,000 after purchasing an additional 3,414 shares during the last quarter. TOP Private Wealth LLC. purchased a new stake in Amazon.com during the second quarter valued at $29,000. Bard Associates Inc. bought a new position in Amazon.com during the second quarter valued at $32,000. Longfellow Investment Management Co. LLC bought a new position in Amazon.com during the second quarter valued at $33,000. Finally, Atomic Invest LLC lifted its position in Amazon.com by 41.2% during the second quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant's stock valued at $40,000 after purchasing an additional 49 shares during the last quarter. Hedge funds and other institutional investors own 72.20% of the company's stock.

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company's principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.

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