Zacks Investment Research Downgrades Amazon.com Inc. (AMZN) to Hold
Amazon.com Inc. (NASDAQ:AMZN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Amazon is one of the largest online retailers in the world. Amazon is driving value across all its businesses and especially the retail business remains very hard to beat on price, choice and convenience. The company has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships. The AWS generates much higher margins than retail, so it has a very positive impact on Amazon’s profitability. Devices and IoT is also a potential growth area. However, Prime saturation in the U.S. market and competition in online retail remains concern.”
AMZN has been the subject of several other research reports. Goldman Sachs Group Inc. reissued a “buy” rating and set a $920.00 price objective on shares of Amazon.com in a research note on Thursday, September 8th. Mizuho lifted their price objective on Amazon.com from $855.00 to $950.00 and gave the company a “buy” rating in a research note on Friday, September 23rd. Evercore ISI reissued a “buy” rating and set a $1,015.00 price objective (up previously from $930.00) on shares of Amazon.com in a research note on Friday, September 16th. Piper Jaffray Cos. reissued an “overweight” rating and set a $900.00 price objective on shares of Amazon.com in a research note on Wednesday, September 7th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating and set a $925.00 price objective on shares of Amazon.com in a research note on Friday, September 9th. Seven equities research analysts have rated the stock with a hold rating and forty-five have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $885.11.
Shares of Amazon.com (NASDAQ:AMZN) opened at 837.31 on Monday. The company’s 50 day moving average price is $779.29 and its 200 day moving average price is $708.41. Amazon.com has a 12 month low of $474.00 and a 12 month high of $839.95. The company has a market cap of $396.95 billion, a price-to-earnings ratio of 208.23 and a beta of 1.19.
Amazon.com (NASDAQ:AMZN) last posted its quarterly earnings data on Thursday, July 28th. The e-commerce giant reported $1.78 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.67. The company earned $30.40 billion during the quarter, compared to analyst estimates of $29.54 billion. Amazon.com had a return on equity of 13.52% and a net margin of 1.60%. The firm’s quarterly revenue was up 31.1% on a year-over-year basis. During the same quarter last year, the company earned $0.19 earnings per share. On average, equities analysts expect that Amazon.com will post $5.82 EPS for the current fiscal year.
In related news, CEO Andrew R. Jassy sold 14,000 shares of the stock in a transaction dated Thursday, September 22nd. The shares were sold at an average price of $800.00, for a total value of $11,200,000.00. Following the completion of the transaction, the chief executive officer now owns 68,141 shares of the company’s stock, valued at approximately $54,512,800. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Jeffrey M. Blackburn sold 10,000 shares of the stock in a transaction dated Tuesday, August 2nd. The shares were sold at an average price of $760.98, for a total transaction of $7,609,800.00. Following the completion of the transaction, the insider now directly owns 55,887 shares of the company’s stock, valued at approximately $42,528,889.26. The disclosure for this sale can be found here. 17.70% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in AMZN. Evercore Wealth Management LLC increased its position in shares of Amazon.com by 1,172.0% in the second quarter. Evercore Wealth Management LLC now owns 34,599 shares of the e-commerce giant’s stock worth $24,760,000 after buying an additional 31,879 shares during the last quarter. Macquarie Group Ltd. increased its position in shares of Amazon.com by 10.0% in the second quarter. Macquarie Group Ltd. now owns 174,183 shares of the e-commerce giant’s stock worth $124,649,000 after buying an additional 15,804 shares during the last quarter. Carnick & Kubik Group LLC acquired a new position in shares of Amazon.com during the second quarter worth approximately $2,037,000. Williams Jones & Associates LLC increased its position in shares of Amazon.com by 22.7% in the second quarter. Williams Jones & Associates LLC now owns 24,801 shares of the e-commerce giant’s stock worth $17,748,000 after buying an additional 4,596 shares during the last quarter. Finally, Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Amazon.com during the second quarter worth approximately $11,179,000. 65.44% of the stock is owned by hedge funds and other institutional investors.
Amazon.com, Inc offers a range of products and services through its Websites. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. The Company has three segments: North America, International and Amazon Web Services (AWS).
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