Redburn Atlantic Raises Amazon.com Price Target to $235.00

Amazon.com (NASDAQ:AMZN) saw its price target increased from $225.00 to $235.00 by Redburn Atlantic in a report released on Tuesday, highlighting the firm’s confidence in the e-commerce giant's stock, which maintains a buy rating.

In addition to Redburn Atlantic's adjustment, several other research reports have discussed Amazon. For example, Wells Fargo & Company recently reiterated an "equal weight" rating with a price target of $197.00 in a research note issued on November 20th. Similarly, Stifel Nicolaus raised their price target from $224.00 to $245.00 while maintaining a "buy" rating as of November 1st. Also on November 1st, Evercore ISI increased their price objective from $240.00 to $260.00, assigning an "outperform" rating. Furthermore, Needham & Company LLC raised their target price from $210.00 to $250.00 in a note dated November 14th. Rosenblatt Securities also adjusted their price target upward from $221.00 to $236.00 with a "buy" rating, again noted on November 1st. Overall, two analysts have rated Amazon’s stock as a hold, while forty-one analysts have issued buy ratings, and one has assigned a strong buy rating. As per MarketBeat, Amazon's stock possesses an average rating of "Moderate Buy" and an average target price of $236.20.

Amazon.com Stock Performance

As of Tuesday, NASDAQ:AMZN opened at $207.86. For the past year, Amazon.com has seen a low of $142.81 and a high of $215.90. The stock has a 50-day simple moving average standing at $193.75 and a 200-day simple moving average of $186.52. Moreover, Amazon.com boasts a market capitalization of $2.19 trillion, a P/E ratio of 44.51, and a PEG ratio of 1.32. Its beta is recorded at 1.14, while the company has a debt-to-equity ratio of 0.21, a current ratio of 1.09, and a quick ratio of 0.87.

Recent Earnings Highlights

On October 31st, Amazon.com disclosed its latest quarterly earnings results. The company reported earnings per share of $1.43 for the quarter, surpassing the consensus estimate of $1.14 by $0.29. The generated revenue for the quarter was $158.88 billion, exceeding the expected revenue of $157.28 billion. Amazon.com achieved a return on equity of 22.41% and reported a net margin of 8.04%, marking an 11.0% increase in quarterly revenue compared to the same period last year. This performance is notable when considering that in the previous year's quarter, the business posted earnings of $0.85 per share. Analysts anticipate Amazon.com will report earnings per share of 5.29 for the current fiscal year.

Insider Trading Activity

In other news, Director Daniel P. Huttenlocher sold a total of 1,237 shares of Amazon stock on November 19th, obtaining an average price of $199.06. This resulted in a transaction value of approximately $246,237. Following this sale, Huttenlocher's remaining shares amount to 24,912, worth about $4,958,982.72, reflecting a 4.73% decrease in his ownership. In a separate transaction, CEO Matthew S. Garman sold 15,260 shares on November 21st, with an average price of $200.19, totaling roughly $3,054,899.40. After this transaction, Garman holds 349,261 shares valued at around $69,918,559.59, representing a 4.19% reduction in stake. Over the past three months, insiders have sold approximately 6,026,683 shares of Amazon stock worth a total of $1,252,148,795, with corporate insiders owning about 10.80% of the company’s stock.

Institutional Investments Overview

Several institutional investors have recently adjusted their holdings in Amazon.com. Vanguard Group Inc. increased its stake by 1.9% in the first quarter, now possessing 785,811,114 shares worth approximately $141,744,609,000 after acquiring an additional 14,724,687 shares last quarter. State Street Corp raised its holdings by 3.3% during the third quarter and now owns 359,179,990 shares valued at $66,926,008,000 following a purchase of 11,370,309 shares. Geode Capital Management LLC also raised its stake by 3.4% during the same period, bringing its total to 199,915,046 shares worth $37,116,341,000. Capital Research Global Investors increased their position by 8.5% in the first quarter, now holding 86,982,857 shares valued at $15,689,968,000 after buying an additional 6,810,145 shares. Lastly, Legal & General Group Plc grew their holdings by 1.5% in the second quarter, holding 69,686,374 shares valued at $13,466,933,000. The data suggests that institutional investors control about 72.20% of Amazon.com’s stock.

Company Overview of Amazon.com

Amazon.com, Inc. focuses on retailing consumer products, providing advertising services, and offering subscription services through both online and physical venues across North America and internationally. The company operates in three segments: North America, International, and Amazon Web Services (AWS). Additionally, Amazon manufactures and sells electronic devices such as Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and Eero, while also engaging in media content production.

Amazon, Stocks, Investors