Amazon.com, Inc. (NASDAQ:AMZN) Receives Average "Moderate Buy" Recommendation from Analysts

Amazon.com, Inc. (NASDAQ:AMZN) has garnered a consensus recommendation of "Moderate Buy" from forty-five brokerages currently covering its stock, according to Marketbeat Ratings. Among these analysts, two have assigned the stock a hold rating, forty-two have issued a buy rating, and one analyst has provided a strong buy rating. The average price target for inventory over the next year among analysts who have issued ratings in the past year is $260.65.

Recently, several equity analysts have published their assessments on the company. For instance, JPMorgan Chase & Co. raised their price target on Amazon.com from $250.00 to $280.00, categorizing the stock as "overweight" in a report released on December 18th. Mizuho also increased their target price from $240.00 to $260.00, giving the company an "outperform" rating in their report on December 10th. Similarly, Robert W. Baird enhanced their price target from $220.00 to $260.00 and maintained an "outperform" rating as of December 13th. On February 7th, Oppenheimer raised its target price from $230.00 to $260.00, maintaining the "outperform" rating. The Royal Bank of Canada followed suit, adjusting their target price from $255.00 to $265.00 while also assigning an "outperform" rating.

Amazon.com Stock Performance

As of Monday, AMZN stock opened at $196.21. The company boasts a market capitalization of $2.08 trillion, a price-to-earnings (P/E) ratio of 35.48, and a price-to-earnings-growth (PEG) ratio of 1.50 with a beta of 1.19. Within the past year, Amazon.com has seen a low of $151.61 and a high of $242.52. The firm has a debt-to-equity ratio of 0.18, a current ratio of 1.06, and a quick ratio of 0.87. The stock has a fifty-day moving average price of $218.90 and a 200-day moving average price of $208.44.

On February 6th, Amazon.com reported its quarterly earnings, revealing earnings per share (EPS) of $1.86, which surpassed analysts’ expectations of $1.52 by $0.34. The company achieved a return on equity of 24.25% and maintained a net margin of 9.29%. Analysts predict Amazon.com will report an EPS of 6.31 for the current year.

Insider Transactions

In related news, CFO Brian T. Olsavsky sold 14,620 shares of the company on February 21st, with an average selling price of $223.14, totaling approximately $3,262,306.80. Post-transaction, he holds 49,000 shares worth around $10,933,860, marking a 22.98% decrease in his ownership. CEO Douglas J. Herrington also sold 27,500 shares on February 12th at an average price of $230.27, resulting in a total of $6,332,425.00. He now owns 497,067 shares valued at approximately $114,459,618.09, indicating a 5.24% reduction in his stake. In total, insiders have sold 102,298 shares in the last three months, worth $22,871,828, and insiders currently own 10.80% of the company’s stock.

Institutional Investments

Recent activity among institutional investors shows a mix of buying and selling of Amazon.com shares. Prudent Man Investment Management Inc. acquired a new position in the fourth quarter valued at about $27,000. Similarly, Accordant Advisory Group Inc. increased its investment by 400.0% during the same period and now owns 125 shares worth $27,000 after adding 100 shares. LSV Asset Management also established a new stake in Amazon.com worth approximately $35,000, while Perritt Capital Management Inc. raised its stake by 72.7%, now holding 190 shares valued at $42,000. Lastly, Compass Planning Associates Inc. bought a new position valued at around $51,000 in the fourth quarter. Approximately 72.20% of the stock is owned by hedge funds and institutional investors.

Company Overview

Amazon.com, Inc. is involved in various activities, such as retail sales of consumer products, advertising, and subscription services through both online and physical stores, catering to customers in North America and around the world. The company operates through several segments: North America, International, and Amazon Web Services (AWS). Additionally, Amazon.com designs and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo smart speakers, Ring security products, and other similar devices, as well as developing and producing media content.

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