Amazon.com (NASDAQ:AMZN) Shares Up 7.2% Following Strong Earnings

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price rose 7.2% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $200.00 and last traded at $199.75. Approximately 37,621,730 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 41,037,465 shares. The stock had previously closed at $186.40.

The e-commerce giant reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $1.14 by $0.29. Amazon.com had a net margin of 7.35% and a return on equity of 21.39%. The business had revenue of $158.88 billion during the quarter, compared to the consensus estimate of $157.28 billion. During the same quarter last year, the firm earned $0.85 earnings per share. The business’s revenue for the quarter was up 11.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on AMZN shares. Telsey Advisory Group increased their target price on Amazon.com from $215.00 to $235.00 and gave the stock an “outperform” rating in a research note on Friday. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Amazon.com from $225.00 to $232.00 and gave the company a “buy” rating in a research note on Friday. Benchmark upped their target price on shares of Amazon.com from $200.00 to $215.00 and gave the stock a “buy” rating in a research note on Friday. Piper Sandler raised their price target on shares of Amazon.com from $215.00 to $225.00 and gave the company an “overweight” rating in a research report on Friday. Finally, UBS Group upped their price objective on Amazon.com from $220.00 to $223.00 and gave the company a “buy” rating in a research report on Monday, October 28th. Two research analysts have rated the stock with a hold rating, forty-one have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Amazon.com has an average rating of “Moderate Buy” and an average price target of $244.11.

Insider Activity

In related news, CEO Andrew R. Jassy sold 20,784 shares of Amazon.com stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $180.77, for a total transaction of $3,757,123.68. Following the sale, the chief executive officer now owns 2,056,534 shares of the company’s stock, valued at approximately $371,759,651.18. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In related news, CFO Brian T. Olsavsky sold 14,600 shares of the company’s stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $180.00, for a total transaction of $2,628,000.00. Following the completion of the transaction, the chief financial officer now owns 49,000 shares in the company, valued at approximately $8,820,000. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew R. Jassy sold 20,784 shares of the firm’s stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $180.77, for a total transaction of $3,757,123.68. Following the transaction, the chief executive officer now directly owns 2,056,534 shares of the company’s stock, valued at $371,759,651.18. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 50,855 shares of company stock worth $9,215,048 over the last ninety days. Corporate insiders own 10.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in shares of Amazon.com by 1.9% in the first quarter. Vanguard Group Inc. now owns 785,811,114 shares of the e-commerce giant’s stock valued at $141,744,609,000 after purchasing an additional 14,724,687 shares in the last quarter. Capital Research Global Investors raised its stake in Amazon.com by 8.5% during the first quarter. Capital Research Global Investors now owns 86,982,857 shares of the e-commerce giant’s stock valued at $15,689,968,000 after purchasing an additional 6,810,145 shares in the last quarter. Legal & General Group Plc lifted its position in Amazon.com by 1.5% during the second quarter. Legal & General Group Plc now owns 69,686,374 shares of the e-commerce giant’s stock valued at $13,466,933,000 after purchasing an additional 1,042,177 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Amazon.com by 0.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 67,745,972 shares of the e-commerce giant’s stock worth $13,091,909,000 after buying an additional 289,532 shares in the last quarter. Finally, Jennison Associates LLC increased its holdings in shares of Amazon.com by 0.5% in the 1st quarter. Jennison Associates LLC now owns 56,666,183 shares of the e-commerce giant’s stock worth $10,221,446,000 after buying an additional 295,132 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com Price Performance

The company has a current ratio of 1.10, a quick ratio of 0.88 and a debt-to-equity ratio of 0.23. The firm’s 50-day moving average price is $184.82 and its 200-day moving average price is $183.75. The stock has a market capitalization of $2.08 trillion, a PE ratio of 47.35, a PEG ratio of 1.46 and a beta of 1.14.

About Amazon.com

Amazon.com, Inc engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content.