Amazon.com (NASDAQ:AMZN) Shares Down 2.1% After Insider Selling

Shares of Amazon.com, Inc. (NASDAQ:AMZN) fell 2.1% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $255.19 and last traded at $259.3210. 40,143,409 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 49,059,730 shares. The stock had previously closed at $264.86.

Specifically, CEO Douglas J. Herrington sold 3,742 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $262.59, for a total value of $982,611.78. Following the completion of the sale, the chief executive officer directly owned 476,972 shares of the company’s stock, valued at $125,248,077.48. This trade represents a 0.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several equities analysts recently weighed in on AMZN shares. Piper Sandler reaffirmed an “overweight” rating and issued a $315.00 price objective (up from $260.00) on shares of Amazon.com in a research note on Thursday, April 30th. Moffett Nathanson lifted their price objective on Amazon.com from $283.00 to $288.00 and gave the company a “buy” rating in a research report on Tuesday, April 7th. Royal Bank Of Canada set a $320.00 target price on Amazon.com and gave the company an “outperform” rating in a report on Thursday, April 30th. Weiss Ratings upgraded Amazon.com from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, May 6th. Finally, Morgan Stanley boosted their price objective on Amazon.com from $300.00 to $330.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Amazon.com has an average rating of “Moderate Buy” and a consensus target price of $312.67.

Amazon.com News Summary

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

• Positive Sentiment: Amazon is still seeing strong investor enthusiasm around AI and AWS, with multiple articles highlighting demand for its Trainium chips, cloud infrastructure, and industrial AI partnerships. Amazon (AMZN) Stock Falls despite Surge in Trainium AI Chip Demand
• Positive Sentiment: Hedge-fund and billionaire buying is adding a bullish tone, including reports that David Tepper doubled his Amazon stake and ARK Invest added to AMZN, which can support sentiment around the stock. Billionaire David Tepper Just Made a Big Bet. Should You Follow His Lead?
• Positive Sentiment: Analysts remain upbeat, with price-target raises and articles noting Amazon’s strong year-to-date performance, suggesting Wall Street still sees upside from AWS and AI data-center spending. Arete Research adjusts price target on Amazon.com
• Neutral Sentiment: Amazon Web Services expanded its enterprise footprint through new collaborations with FIS and AVEVA, which are constructive long-term signs but not likely to move the stock on their own. FIS Brings Enterprise Risk Suite to Amazon Web Services
• Neutral Sentiment: Amazon’s newer consumer features, including Alexa+ podcast generation and Fire TV/Alexa upgrades, support the retail and ecosystem story, but these are more incremental than immediate stock drivers. Amazon’s new Alexa+ powered feature can generate podcast episodes
• Negative Sentiment: There are also a few headwinds, including a class-action lawsuit over tariff-cost claims and insider selling by CEO Douglas J. Herrington, though the sale was pre-planned under a 10b5-1 arrangement. Amazon faces class action over tariff cost claims
• Negative Sentiment: Some commentary also suggests Amazon is no longer a cheap valuation story, which can temper enthusiasm after the recent run-up in AMZN shares. Amazon (AMZN) Is No Longer Cheap. AWS Makes It Hard to Walk Away

Amazon.com Price Performance

The company has a market capitalization of $2.79 trillion, a P/E ratio of 31.02, a price-to-earnings-growth ratio of 1.98 and a beta of 1.46. The company has a fifty day moving average price of $235.39 and a 200 day moving average price of $230.94. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last posted its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating the consensus estimate of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business’s revenue was up 16.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.59 earnings per share. On average, sell-side analysts forecast that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Hedge Funds Weigh In On Amazon.com

Several hedge funds and other institutional investors have recently made changes to their positions in AMZN. Vanguard Group Inc. lifted its position in 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 worth $158,348,557,000 after purchasing an additional 8,913,959 shares during the period. State Street Corp lifted its position in Amazon.com by 1.8% in the fourth quarter. State Street Corp now owns 388,653,121 shares of the e-commerce giant’s stock worth $89,708,913,000 after purchasing an additional 6,971,680 shares during the period. Geode Capital Management LLC lifted its position in Amazon.com by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 225,120,994 shares of the e-commerce giant’s stock worth $51,753,622,000 after purchasing an additional 2,479,324 shares during the period. Norges Bank acquired a new stake in Amazon.com in the fourth quarter worth approximately $32,868,735,000. Finally, Auto Owners Insurance Co lifted its position in 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 period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Amazon.com Company 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.