Amazon.com (NASDAQ:AMZN) Shares Down 3.4% - What's Next?

During mid-day trading on Friday, shares of Amazon.com, Inc. (NASDAQ:AMZN) experienced a decline of 3.4%. The stock hit a low of $194.05 and was last seen trading at $194.52. In this session, about 14,663,697 shares changed hands, indicating a significant drop of 62% from the average volume of 38,349,244 shares. The stock's previous closing price had been $201.36.

Analysts Set New Price Targets

Several analysts have recently commented on Amazon's stock. On February 7th, Wedbush maintained an "outperform" rating with a target price of $280.00. Barclays also raised their price target from $235.00 to $265.00 and issued an "overweight" rating on the same day. Additionally, Rosenblatt Securities increased their price objective from $236.00 to $287.00 with a "buy" rating. HSBC raised its target from $225.00 to $270.00, and Jefferies Financial Group hiked its price objective from $235.00 to $275.00. The consensus among analysts includes two hold ratings, 42 buy ratings, and one strong buy rating. According to MarketBeat.com, Amazon has a consensus rating of "Moderate Buy" and a target price of $260.65.

Amazon.com Stock Performance

The company's fifty-day simple moving average stands at $217.53, while the 200-day moving average is $208.75. Financial metrics for Amazon include a debt-to-equity ratio of 0.18, a current ratio of 1.06, and a quick ratio of 0.87. Currently, Amazon boasts a market capitalization of $2.04 trillion, a PE ratio of 34.72, a price-to-earnings-growth ratio of 1.50, and a beta of 1.19. On February 6th, Amazon announced its earnings results, reporting earnings per share (EPS) of $1.86, surpassing the consensus estimate of $1.52 by $0.34. The company recorded a net margin of 9.29% and a return on equity of 24.25%. Analysts predict an EPS of 6.31 for Amazon for the current year.

Insider Activity

In recent corporate actions, Amazon's CEO Andrew R. Jassy sold 20,784 shares of the company's stock on February 21st. The shares were sold at an average price of $220.65, amounting to a total of $4,585,989.60. Following this transaction, he retains 2,118,886 shares valued at approximately $467,532,195.90. This sale led to a decrease of 0.97% in his stock ownership. Another sale took place on February 12th when CEO Douglas J. Herrington sold 27,500 shares at an average price of $230.27, totaling $6,332,425.00. After this transaction, he directly owns 497,067 shares worth $114,459,618.09, reflecting a 5.24% decrease in ownership. Over the last quarter, insiders collectively sold 102,298 shares valued at $22,871,828. Insiders currently hold 10.80% of the company's stock.

Institutional Investors Weigh In On Amazon.com

Numerous institutional investors have adjusted their positions in Amazon. Vanguard Group Inc. increased its holdings by 2.2% in the fourth quarter, now owning 823,360,597 shares valued at $180,637,081,000 after acquiring 17,635,391 additional shares. State Street Corp also raised its holdings by 3.3% in the third quarter, totaling 359,179,990 shares worth $66,926,008,000 after an increase of 11,370,309 shares. FMR LLC grew its shareholding by 0.5% in the fourth quarter, now owning 328,464,225 shares valued at $72,061,766,000 after acquiring 1,725,664 additional shares. Likewise, Geode Capital Management LLC raised its position by 2.5% in the fourth quarter, owning 204,930,426 shares valued at $44,837,256,000. Price T. Rowe Associates Inc. MD increased its stake by 2.3%, now owning 182,813,905 shares worth $40,107,544,000. Overall, 72.20% of Amazon's stock is owned by hedge funds and other institutional investors.

Amazon.com Company Profile

Amazon.com, Inc. is engaged in the retail sale of consumer products and offers advertising and subscription services through both online and physical stores across North America and internationally. The company operates in three segments: North America, International, and Amazon Web Services (AWS). Alongside its retail operations, Amazon produces and sells electronic devices, including Kindle, Fire tablets, and Echo smart speakers, and develops media content.

Should You Invest $1,000 in Amazon.com Right Now?

Before making investment decisions regarding Amazon.com, potential investors may want to consider various opinions and analyses. While Amazon currently holds a "Moderate Buy" rating from analysts, some top-rated analysts suggest that there may be alternative stocks that present better buying opportunities at this time.

Amazon, Stocks, Investments