Amazon.com (NASDAQ:AMZN) Trading 7.2% Higher After Earnings Beat

Amazon.com, Inc. (NASDAQ:AMZN)’s share price rose 7.2% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $200.00 and last traded at $199.75. Approximately 37,621,730 shares were traded 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 EPS for the quarter, beating the consensus estimate of $1.14 by $0.29. The company had revenue of $158.88 billion for the quarter, compared to the consensus estimate of $157.28 billion. Amazon.com had a net margin of 7.35% and a return on equity of 21.39%. The firm’s revenue was up 11.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.85 EPS.

Analyst Ratings Changes

Several equities analysts have commented on AMZN shares. DA Davidson reaffirmed a “buy” rating and issued a $235.00 price objective on shares of Amazon.com in a research report on Thursday, October 10th. Truist Financial raised their price target on shares of Amazon.com from $265.00 to $270.00 and gave the stock a “buy” rating in a research note on Friday. Sanford C. Bernstein raised their target price on shares of Amazon.com from $210.00 to $215.00 and gave the stock an “outperform” rating in a research report on Monday, July 22nd. Pivotal Research started coverage on Amazon.com in a research note on Friday, October 11th. They issued a “buy” rating and a $260.00 price objective on the stock. Finally, Stifel Nicolaus lifted their target price on Amazon.com from $224.00 to $245.00 and gave the company a “buy” rating in a research report on Friday. Two investment analysts have rated the stock with a hold rating, forty-two have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Amazon.com presently has a consensus rating of “Moderate Buy” and an average target price of $241.62.

Insider Activity

In other Amazon.com news, VP Shelley Reynolds sold 3,791 shares of the stock in a transaction that occurred on Wednesday, August 21st. The shares were sold at an average price of $181.04, for a total transaction of $686,322.64. Following the sale, the vice president now directly owns 121,461 shares in the company, valued at $21,989,299.44. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other news, VP Shelley Reynolds sold 3,791 shares of Amazon.com stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $181.04, for a total value of $686,322.64. Following the completion of the transaction, the vice president now owns 121,461 shares in the company, valued at approximately $21,989,299.44. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Andrew R. Jassy sold 20,784 shares of the company’s 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 in the company, 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. Over the last quarter, insiders sold 50,855 shares of company stock valued at $9,215,048. 10.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amazon.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of Amazon.com by 1.9% in the 1st 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 during the last quarter. Capital Research Global Investors increased its holdings in shares of Amazon.com by 8.5% in the 1st 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 stake in shares of Amazon.com by 1.5% in 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 period. Bank of New York Mellon Corp boosted its holdings in Amazon.com by 0.4% during the second 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 Amazon.com by 0.5% in the first quarter. Jennison Associates LLC now owns 56,666,183 shares of the e-commerce giant’s stock valued at $10,221,446,000 after buying an additional 295,132 shares in the last quarter. 72.20% of the stock is owned by institutional investors and hedge funds.

Amazon.com Stock Performance

The company has a market capitalization of $2.10 trillion, a price-to-earnings ratio of 47.79, a P/E/G ratio of 1.46 and a beta of 1.14. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.88 and a current ratio of 1.10. The stock’s 50-day moving average price is $184.40 and its 200-day moving average price is $183.65.

Amazon.com Company Profile

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.