Amazon.com (NASDAQ:AMZN) Stock Falls 2.2% After Insider Selling

Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded down 2.2% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $252.27 and last traded at $260.21. Approximately 83,633,127 shares changed hands during mid-day trading, an increase of 79% from the average daily 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 dated 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 transaction, the chief executive officer owned 473,681 shares in the company, valued at approximately $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 accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on AMZN shares. DA Davidson set a $250.00 price objective on Amazon.com and gave the stock a “neutral” rating in a research note on Friday, October 30th. Raymond James Financial reaffirmed an “outperform” rating and issued a $250.00 price objective on shares of Amazon.com in a research note on Friday, October 30th. 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. Telsey Advisory Group reissued an “outperform” rating and set a $335.00 target price on shares of Amazon.com in a research report on Friday, October 30th. Finally, The Goldman Sachs Group reissued a “conviction-buy” rating and set a $370.00 target price on shares of Amazon.com in a research report on Friday, October 30th. 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’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $321.74.

Key Amazon.com News

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 Price Performance

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 company has a market capitalization of $2.81 trillion, a PE ratio of 21.04, a price-to-earnings-growth ratio of 1.90 and a beta of 1.49. The stock’s 50-day moving average is $253.90 and its two-hundred day moving average is $243.32.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings data 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 the consensus estimate of $202.22 billion. During the same period in the previous year, the business earned $1.95 EPS. The firm’s revenue for the quarter was up 12.1% on a year-over-year basis. On average, equities analysts predict that Amazon.com, Inc. will post 7.80 EPS for the current year.

Institutional Investors Weigh In On Amazon.com

Hedge funds and other institutional investors have recently modified their holdings of the business. TOP Private Wealth LLC. bought a new stake in shares of Amazon.com in the second quarter valued at about $29,000. Bard Associates Inc. purchased a new stake in Amazon.com in the second quarter worth about $32,000. Longfellow Investment Management Co. LLC bought a new position in Amazon.com during the 2nd quarter worth about $33,000. Atomic Invest LLC grew its holdings in Amazon.com by 41.2% during the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant’s stock worth $40,000 after acquiring an additional 49 shares in the last quarter. Finally, Strategic Wealth Advisors LLC bought a new position in Amazon.com during the 2nd quarter worth about $68,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

About Amazon.com

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.