AMI Investment Management Inc. has decreased its holdings in Amazon.com, Inc. (NASDAQ:AMZN) by 11.0% during the third quarter, according to the firm’s latest filing with the Securities and Exchange Commission (SEC). Following the sale of 2,461 shares, AMI now owns 19,839 shares of Amazon, which represents approximately 1.0% of its investment portfolio, making it the 26th largest holding for the firm. As of the most recent filing, these shares were valued at $4,356,000.
The decision to reduce holdings in Amazon comes as several other institutional investors have also made adjustments to their stakes in the e-commerce giant. For instance, Kingstone Capital Partners Texas LLC significantly increased its holdings by an astonishing 542,733.6% during the second quarter, now owning 132,641,388 shares valued at $29.1 billion. Norges Bank entered the market with a new stake worth approximately $27.4 billion, while Nuveen LLC established a position valued at $11.7 billion in the first quarter.
Vanguard Group Inc. also expanded its investment, increasing its stake by 2.1%, resulting in ownership of 849,721,601 shares, valued at $186.4 billion. Laurel Wealth Advisors LLC raised its position by an impressive 22,085.8%, now holding 12,177,557 shares worth $2.67 billion. Collectively, institutional investors and hedge funds now own 72.20% of Amazon’s stock.
Insider Transactions and Market Performance
In related developments, Amazon’s CEO, Douglas J. Herrington, sold 2,500 shares of the company’s stock on December 1, 2023, at an average price of $233.22, totaling $583,050. Following this transaction, Herrington’s holdings decreased by 0.49%, leaving him with 505,934 shares valued at around $118 million. Similarly, Director Daniel P. Huttenlocher sold 1,237 shares on November 20, 2023, for $280,316.57, marking a 4.52% reduction in his position.
Over the past ninety days, insiders have sold a total of 79,734 shares valued at $18.5 million, while company insiders now hold 10.80% of Amazon’s stock.
As of Monday, Amazon’s stock opened at $226.50, reflecting a 1.9% decrease. The company’s market capitalization stands at $2.42 trillion, with a price-to-earnings (P/E) ratio of 31.99. Amazon’s stock has experienced a fifty-two week low of $161.38 and a high of $258.60.
Amazon recently reported its quarterly earnings on October 30, 2023, revealing earnings per share of $1.95, surpassing analyst expectations of $1.57. The company generated $180.17 billion in revenue for the quarter, exceeding projections of $177.53 billion and demonstrating a year-over-year revenue increase of 13.4%.
Analysts forecast that Amazon.com, Inc. will achieve earnings of $6.31 per share for the current fiscal year.
Market Sentiment and Analyst Ratings
Recent market sentiment around Amazon has been generally positive, with several firms raising their price targets. Wells Fargo increased its target to $295, while Oppenheimer set a target of $305, contributing to a broader consensus among analysts that Amazon may reach around $300 within a year.
Additionally, BMO Capital raised its target to $304 based on momentum in Amazon Web Services (AWS) and artificial intelligence (AI), reinforcing the view that these sectors could bolster future revenue and profit margins. Notably, billionaire investor Stanley Druckenmiller has added Amazon to his AI investments, which may improve market sentiment further.
Despite the generally optimistic outlook, some analysts are cautious. A recent report from MarketBeat indicated that Amazon is currently in a consolidation phase, which may lead to muted performance until more substantial catalysts emerge. Analysts have mixed projections for 2025, with some emphasizing that Amazon’s growth may be a recovery play rather than a leading momentum stock.
Overall, Amazon.com, Inc. remains a focal point for investors as it navigates its complex market dynamics, balancing growth potential with the realities of a competitive landscape.
