Magellan Asset Management Ltd lowered its stake in shares of Amazon.com, Inc. (NASDAQ:AMZN – Free Report) by 19.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,248,881 shares of the e-commerce giant’s stock after selling 529,811 shares during the quarter. Amazon.com comprises about 6.1% of Magellan Asset Management Ltd’s holdings, making the stock its largest position. Magellan Asset Management Ltd’s holdings in Amazon.com were worth $468,374,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other hedge funds also recently added to or reduced their stakes in the stock. MilWealth Group LLC lifted its position in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares during the period. Lifetime Wealth Management P.C. acquired a new position in Amazon.com during the 4th quarter worth approximately $45,000. Elkhorn Partners Limited Partnership grew its stake in shares of Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock worth $46,000 after purchasing an additional 180 shares during the period. Fairway Wealth LLC lifted its stake in shares of Amazon.com by 95.6% in the fourth quarter. Fairway Wealth LLC now owns 221 shares of the e-commerce giant’s stock valued at $51,000 after purchasing an additional 108 shares during the period. Finally, Prudent Man Investment Management Inc. raised its holdings in Amazon.com by 87.7% during the fourth quarter. Prudent Man Investment Management Inc. now owns 229 shares of the e-commerce giant’s stock worth $53,000 after purchasing an additional 107 shares during the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling
In other news, CEO Douglas J. Herrington sold 1,000 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $239.77, for a total value of $239,770.00. Following the completion of the transaction, the chief executive officer directly owned 484,527 shares in the company, valued at approximately $116,175,038.79. This represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the firm’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $268.53, for a total value of $2,489,273.10. Following the sale, the senior vice president owned 41,190 shares of the company’s stock, valued at $11,060,750.70. This represents a 18.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 76,867 shares of company stock valued at $20,253,702 over the last three months. Company insiders own 8.90% of the company’s stock.
Amazon.com News Summary
- Positive Sentiment: AWS growth is strengthening the AI investment case. Second-quarter revenue rose 19.6% to $200.6 billion, while AWS revenue increased 37% and operating income rose sharply. Investors are increasingly confident that Amazon’s infrastructure spending is translating into cloud demand, margins and future revenue visibility. Amazon AWS growth article
- Positive Sentiment: Analysts remain constructive. Multiple firms have raised price targets, with reported targets generally above the current share price. A large AWS backlog and accelerating AI-related demand are supporting the bullish outlook. Amazon analyst targets and AWS backlog
- Positive Sentiment: AI monetization is broadening. Amazon’s investment in Anthropic and its OpenAI partnership could increase demand for AWS chips and infrastructure. Personalized recommendations and AI features in Prime Video may also improve engagement and create additional monetization opportunities. Amazon Prime Video AI article
- Neutral Sentiment: Recent momentum may be vulnerable to profit-taking. Short covering and strong post-earnings buying helped drive the recent rally, but some analysts have downgraded Amazon to more moderate recommendations as valuation and expectations rise. Amazon rating downgrade
- Negative Sentiment: Bezos’ planned sale is the main near-term overhang. The proposed disposal, valued at roughly $4 billion to $4.7 billion, increases potential supply and has been interpreted as a sentiment “buzzkill” immediately after the stock’s record high. Jeff Bezos Amazon share sale
- Negative Sentiment: Risks from spending and regulation remain. Amazon faces very large AI capital commitments, negative free cash flow and future data-center lease obligations. New Jersey also sued over alleged delivery-network wage suppression, while a court allowed Perplexity’s AI shopping tools to continue operating on Amazon’s platform, potentially increasing competitive and security concerns. Big Tech AI data-center lease obligations
Amazon.com Price Performance
AMZN opened at $277.42 on Wednesday. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $287.20. The company has a 50 day moving average of $246.29 and a two-hundred day moving average of $236.73. The company has a market cap of $2.99 trillion, a P/E ratio of 22.32, a P/E/G ratio of 1.81 and a beta of 1.45.
Amazon.com (NASDAQ:AMZN – Get Free Report) last issued its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 EPS for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. The business had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.68 EPS. On average, analysts expect that Amazon.com, Inc. will post 8.39 earnings per share for the current year.
Analyst Upgrades and Downgrades
A number of equities analysts have recently weighed in on the company. TD Cowen reissued a “buy” rating and issued a $350.00 price target (up from $340.00) on shares of Amazon.com in a report on Friday. Raymond James Financial reiterated an “outperform” rating and set a $390.00 price objective (up from $280.00) on shares of Amazon.com in a research report on Friday. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Amazon.com in a report on Friday, July 31st. Morgan Stanley reaffirmed an “overweight” rating and issued a $335.00 price objective (up from $330.00) on shares of Amazon.com in a research report on Friday. Finally, Weiss Ratings upgraded Amazon.com from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, May 6th. Fifty-six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $322.56.
View Our Latest Stock Report on Amazon.com
Amazon.com 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.
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