Amazon.com (NASDAQ:AMZN) Stock Price Down 1% - What's Next?

On Thursday, Amazon.com, Inc. (NASDAQ:AMZN) saw its stock price decrease by 1%. The shares reached a low of $205.05 before closing at $205.74. In total, 28,061,638 shares were traded, reflecting a significant drop of 32% compared to the average trading volume of 41,492,559 shares. The previous closing price stood at $207.86.

Analysts Set New Price Targets

Recent commentary from various research analysts has brought updates to the stock's price targets. Cantor Fitzgerald reaffirmed an "overweight" rating, setting a price target of $230.00 for Amazon shares in their report on October 7th. Bank of America increased their target from $210.00 to $230.00 while maintaining a "buy" rating on November 1st. Monness Crespi & Hardt raised their target from $225.00 to $245.00 and issued a "buy" rating the same day. Additionally, Jefferies Financial Group increased their price objective for Amazon from $225.00 to $235.00, also designating a "buy" rating. Barclays similarly boosted their target from $220.00 to $235.00 in an earlier report on August 2nd. Currently, two analysts have assigned a hold rating, while forty-one have rated the stock as a buy, with one giving it a strong buy. According to MarketBeat.com, the average target price is $236.20, indicating a consensus rating of "Moderate Buy."

Amazon.com Price Performance

The company’s 50-day moving average is $194.14, while the 200-day moving average is $186.66. Amazon holds a market capitalization of $2.16 trillion, a P/E ratio of 44.06, a price-to-earnings-growth ratio of 1.35, and a beta value of 1.14. Financial ratios indicate a quick ratio of 0.87, a current ratio of 1.09, and a debt-to-equity ratio of 0.21.

Amazon.com last reported its earnings on October 31st. The company posted an earnings per share (EPS) of $1.43 for the quarter, exceeding the consensus estimate of $1.14 by $0.29. Amazon recorded a return on equity of 22.41% and a net margin of 8.04%. Revenue for the quarter was reported at $158.88 billion, surpassing analysts' expectations of $157.28 billion. This represents an 11% increase in revenue year-over-year, with analysts predicting an EPS of 5.29 for the current fiscal year.

Insider Transactions at Amazon.com

In other developments, CEO Matthew S. Garman sold 15,260 shares on November 21st at an average price of $200.19, totaling approximately $3.05 million. Post-transaction, Garman holds 349,261 shares, valued at about $69.92 million, reflecting a 4.19% decline in his stake. This transaction was disclosed in a filing with the SEC. Notably, founder Jeffrey P. Bezos sold 2,996,362 shares on November 8th at an average price of $208.85, amounting to around $625.79 million. After this sale, Bezos continues to own 917,416,976 shares, valued at approximately $191.60 billion, marking a 0.33% decrease in his ownership. During the past ninety days, insiders have sold 6,026,683 shares worth about $1.25 billion, while insiders own 10.80% of the firm’s stock.

Institutional Inflows and Outflows

Recent activity from large investors includes Semus Wealth Partners LLC, which slightly increased its stake in Amazon by 0.3% in the third quarter, now owning 17,920 shares valued at $3.34 million after adding 49 shares. Bell Investment Advisors Inc raised its position by 1.5%, owning 3,359 shares worth $626,000 after purchasing 51 additional shares. Garrison Point Advisors LLC raised its stake by 0.3% in the first quarter, now holding 20,375 shares valued at $3.68 million following the buying of 55 shares. Other investors, like Meridian Investment Counsel Inc. and O Connor Financial Group LLC, also increased their holdings modestly. Institutional investors currently hold 72.20% of Amazon’s stock.

About Amazon.com

Amazon.com, Inc. focuses on retail sales of consumer products, advertising, and subscription services through both online and physical platforms. The corporation is divided into three segments: North America, International, and Amazon Web Services (AWS). Additionally, Amazon manufactures and sells devices such as Kindle and Fire tablets and develops various media content.

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