Research analysts at Rosenblatt Securities have reaffirmed their “buy” rating for Amazon.com (NASDAQ: AMZN) in a report issued to clients and investors on October 31, 2023. They have set a target price of $305.00 for the e-commerce giant’s shares, indicating a potential upside of approximately 34.79% from the stock’s previous closing price.
Several other brokerages have also weighed in on Amazon’s stock recently. Canaccord Genuity Group set a price objective of $300.00 with a “buy” rating on the same day. Meanwhile, Citigroup lifted their price target from $270.00 to $320.00, also assigning a “buy” rating. President Capital raised their price target to $320.00 in a report dated November 4, 2023. In addition, Raymond James Financial increased their price objective from $230.00 to $275.00 with an “outperform” rating. Finally, Robert W. Baird set a target price of $285.00 while also rating the stock as “outperform.”
Currently, one investment analyst has assigned a “Strong Buy” rating, while fifty-seven analysts have given a “Buy” rating. Three analysts issued a “Hold” rating, and one has a “Sell” rating. According to data from MarketBeat, Amazon’s stock has a consensus rating of “Moderate Buy” along with an average price target of $294.70.
Recent Earnings Performance
Amazon.com announced its earnings results on October 30, 2023, reporting earnings per share (EPS) of $1.95 for the quarter. This figure surpassed the consensus estimate of $1.57 by $0.38. The company achieved a net margin of 10.54% and a return on equity of 23.84%. Revenue for the quarter reached $180.17 billion, exceeding the consensus estimate of $177.53 billion. In the same quarter last year, Amazon had an EPS of $1.43, demonstrating a year-over-year revenue growth of 13.4%.
Looking ahead, Amazon has provided guidance for its fourth quarter of fiscal year 2025, with sell-side analysts projecting an EPS of $6.31 for the current fiscal year.
Insider Transactions and Institutional Activity
In related news, Director Daniel P. Huttenlocher sold 1,237 shares of Amazon on November 20, 2023, at an average price of $226.61, totaling approximately $280,316.57. Following this transaction, he retains ownership of 26,148 shares, valued at about $5,925,398.28. This sale represents a 4.52% decrease in his ownership stake, as disclosed in a filing with the Securities and Exchange Commission (SEC).
Additionally, CEO Douglas J. Herrington sold 22,000 shares on October 31, 2023, for a total of $5,500,660.00. After this sale, he holds 493,507 shares valued at $123,391,555.21, reflecting a 4.27% decrease in his ownership. Over the past 90 days, insiders have sold a total of 44,594 shares worth approximately $10,887,531. Insiders now hold 9.70% of the company’s stock.
Institutional investors have also been active, with Wilson Asset Management International PTY Ltd. acquiring a new position valued at $11,102,000 in the second quarter. ARK Investment Management LLC increased its holdings by 8.3% during the same period, owning 1,140,494 shares worth approximately $250,213,000 after acquiring an additional 86,978 shares. Other notable increases in holdings include Flaharty Asset Management LLC, which raised its stake by 87.7%, and Border to Coast Pensions Partnership Ltd., which grew its holdings by 6.0%.
Overall, institutional investors hold approximately 72.20% of Amazon’s stock, reflecting strong confidence in the company’s future prospects.
