Insider Selling: Amazon.com, Inc. (NASDAQ:AMZN) CEO Sells $3,054,899.40 in Stock

On November 21st, 2024, Matthew S. Garman, the CEO of Amazon.com, Inc. (NASDAQ:AMZN), divested 15,260 shares of the company’s stock. This transaction was executed at an average price of $200.19, culminating in a total sale amount of $3,054,899.40. Post-sale, Garman retains ownership of 349,261 shares, which are presently valued at approximately $69.9 million. This transaction represented a reduction of 4.19% in his overall stake in the company. The details of this transaction have been submitted to the Securities and Exchange Commission (SEC) and can be reviewed in an official filing.

Amazon.com Price Performance

On the day of the sale, NASDAQ AMZN opened at $205.74. In recent trading metrics, Amazon has maintained a 50-day moving average price of $194.14, with a longer-term 200-day average at $186.66. Over the past year, the company's stock has reached a low of $142.81 and a high of $215.90. The financial health indicators show a quick ratio of 0.87, a current ratio of 1.09, and a debt-to-equity ratio of 0.21. Amazon.com, Inc. has a sizeable market capitalization of $2.16 trillion, with a price-to-earnings (P/E) ratio of 44.06 and a PEG ratio of 1.35, indicating growth potential. Furthermore, the company has a beta of 1.14, reflecting its volatility in comparison to the market.

Earnings Results

Amazon.com, Inc. recently reported its earnings results on October 31st. For the last quarter, the company announced earnings per share (EPS) of $1.43, surpassing analyst forecasts which estimated $1.14 by a margin of $0.29. Additionally, Amazon's revenue for the quarter was $158.88 billion, slightly exceeding expectations of $157.28 billion. The company's performance showed a net margin of 8.04% and a return on equity of 22.41%. Year-over-year, revenue growth was reported at 11.0%, with earnings per share from the previous year noted at $0.85. Analysts predict an EPS of 5.29 for Amazon.com, Inc. in the ongoing fiscal year.

Wall Street Analysts' Ratings

Several research firms have recently revised their ratings on Amazon.com’s shares. UBS Group increased their price target from $220 to $223, giving the stock a “buy” rating in a note issued on October 28th. Oppenheimer upgraded their target price from $220 to $230 with an “outperform” rating on November 1st. Likewise, TD Cowen raised their price target from $230 to $240, also taglining their recommendation as “buy.” Redburn Atlantic set their new target price at $235, and Piper Sandler increased their target to $225, both maintaining strong buy sentiments. Currently, only two analysts suggest holding the stock, while a significant majority—forty-one analysts—advise buying, with one issuing a strong buy recommendation. Data from MarketBeat.com presents the overall consensus as a “Moderate Buy” with an average price target of $236.20 for the stock.

Institutional Investments in Amazon.com

Institutional investors have been active in adjusting their positions in Amazon’s stock. Franklin Resources Inc. has slightly increased its holdings by 0.5% during the third quarter, acquiring an additional 257,072 shares, bringing their total to 47,156,540 shares valued at approximately $8.84 billion. Asset Advisors Investment Management LLC also increased their position by 1.3%, holding 116,869 shares valued at $21.78 million. Meanwhile, Tri Ri Asset Management Corp entered the scene, purchasing new shares valued around $9.82 million. Several other firms, including Optimist Retirement Group LLC and Blankinship & Foster LLC, have also established or expanded their stakes in Amazon.com, with hedge funds and institutional investors collectively owning about 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc. operates a vast business in the retail sale of consumer products, advertising, and subscription services across both online and physical platforms globally. The company is divided into three primary segments: North America, International, and Amazon Web Services (AWS). In addition to retail, Amazon manufactures and sells a range of electronic devices, including Kindle, Fire tablets, and Echo, as well as developing media content.

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