Amazon.com (NASDAQ:AMZN) Shares Decline: What's Next?

Amazon.com, Inc. (NASDAQ:AMZN) experienced a decline of 3.3% in its share price during mid-day trading on Monday. The stock reached a low of $190.88 before closing at $192.77. During this trading session, 16,840,989 shares changed hands, marking a significant drop of 55% compared to the average daily volume of 37,791,922 shares. The previous closing price was $199.25.

Analyst Opinions on Amazon.com

Recently, several analysts in the equities research sector have provided insights regarding Amazon's stock. Roth MKM raised its price target for Amazon shares from $220.00 to $250.00, maintaining a "buy" rating. Oppenheimer also increased their target from $230.00 to $260.00, while issuing an "outperform" rating. Furthermore, Robert W. Baird improved their target price from $220.00 to $260.00, also awarding the company an "outperform" rating. Rosenblatt Securities lifted their target from $236.00 to $287.00 and retained a "buy" rating. Lastly, JMP Securities reaffirmed a "market outperform" rating and placed a price objective of $285.00 on Amazon shares. Currently, 42 analysts have issued a buy rating, while only two recommend holding the stock. One analyst has given it a strong buy rating. MarketBeat.com indicates that Amazon.com holds an average rating of "Moderate Buy" with a consensus price target set at $260.65.

Stock Performance Overview

The stock is currently trading below its 50-day simple moving average of $224.11 and its 200-day simple moving average of $206.99. Amazon's financial metrics indicate a current ratio of 1.06, a quick ratio of 0.87, and a debt-to-equity ratio of 0.18. The company boasts a market capitalization of $2.06 trillion, a price-to-earnings ratio of 35.12, a PEG ratio of 1.50, and a beta of 1.19.

Latest Earnings Reports

Amazon announced its most recent quarterly earnings on February 6, recording an earnings per share (EPS) of $1.86, which surpassed the consensus estimate of $1.52 by $0.34. The company's net margin stands at 9.29%, and it has a return on equity of 24.25%. Analysts project that Amazon.com, Inc. will report an EPS of 6.31 for the current fiscal year.

Insider Transactions

Recently, there have been some insider sales involving Amazon shares. VP Shelley Reynolds sold 8,833 shares at an average price of $222.47, totaling approximately $1.97 million, decreasing her ownership by 6.87%. CEO Douglas J. Herrington sold 5,501 shares at an average price of $228.44 for about $1.26 million, resulting in a 1.08% drop in his ownership. Over the past three months, insiders have sold 102,298 shares valued at around $22.87 million. Corporate insiders hold 10.80% of the company’s total stock.

Institutional Activity

Various hedge funds and institutional investors have recently adjusted their holdings in Amazon.com. Vanguard Group Inc. increased its stake by 2.2% in the fourth quarter, now holding approximately 823,360,597 shares worth about $180.64 billion. State Street Corp. also boosted its stake by 3.3% in the third quarter, now owning 359,179,990 shares valued at around $66.93 billion. Other investors, such as FMR LLC and Geode Capital Management LLC, have made notable increases in their holdings. Currently, institutional investors and hedge funds own approximately 72.20% of Amazon's shares.

About Amazon.com

Amazon.com, Inc. is engaged in the retail sale of consumer products and offers advertising and subscription services through both online and physical stores, operating primarily in North America and internationally. The company has three key segments: North America, International, and Amazon Web Services (AWS). Additionally, it manufactures and sells electronic devices, such as Kindle and Fire tablets, and develops media content.

Amazon, Stock, Analysts