Amazon.com (AMZN) Shares Gap Up on Better-Than-Expected Earnings

Amazon.com, Inc. (NASDAQ:AMZN)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $1,861.00, but opened at $1,782.17. Amazon.com shares last traded at $1,670.21, with a volume of 441953 shares traded.

The e-commerce giant reported $5.75 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $3.29 by $2.46. Amazon.com had a return on equity of 25.85% and a net margin of 4.03%. The business had revenue of $56.58 billion for the quarter, compared to analysts’ expectations of $57.05 billion.

Several research firms have weighed in on AMZN. DA Davidson boosted their price objective on Amazon.com from $2,200.00 to $2,450.00 and gave the stock a “buy” rating in a research report on Wednesday, September 5th. Wells Fargo & Co reissued a “buy” rating and issued a $2,300.00 price objective on shares of Amazon.com in a research report on Monday, October 1st. BidaskClub raised Amazon.com from a “hold” rating to a “buy” rating in a research report on Friday, September 28th. Robert W. Baird reissued a “buy” rating on shares of Amazon.com in a research report on Monday, September 3rd. Finally, Macquarie reissued a “buy” rating and issued a $2,200.00 price objective on shares of Amazon.com in a research report on Tuesday, October 2nd. Five research analysts have rated the stock with a hold rating and forty-seven have issued a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $2,083.06.



In related news, Director Thomas O. Ryder sold 5,000 shares of the business’s stock in a transaction on Wednesday, August 1st. The stock was sold at an average price of $1,783.81, for a total transaction of $8,919,050.00. Following the sale, the director now directly owns 10,752 shares in the company, valued at approximately $19,179,525.12. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Tom A. Alberg sold 2,320 shares of the business’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $1,827.29, for a total value of $4,239,312.80. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 25,308 shares of company stock worth $47,905,498. 16.30% of the stock is currently owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in AMZN. OLD National Bancorp IN grew its position in Amazon.com by 4.5% during the third quarter. OLD National Bancorp IN now owns 2,362 shares of the e-commerce giant’s stock worth $4,731,000 after buying an additional 101 shares in the last quarter. Good Life Advisors LLC grew its position in Amazon.com by 4.0% during the third quarter. Good Life Advisors LLC now owns 828 shares of the e-commerce giant’s stock worth $1,657,000 after buying an additional 32 shares in the last quarter. Mechanics Bank Trust Department grew its position in Amazon.com by 5.4% during the third quarter. Mechanics Bank Trust Department now owns 2,896 shares of the e-commerce giant’s stock worth $5,801,000 after buying an additional 149 shares in the last quarter. EULAV Asset Management grew its position in Amazon.com by 6.4% during the third quarter. EULAV Asset Management now owns 20,000 shares of the e-commerce giant’s stock worth $40,060,000 after buying an additional 1,200 shares in the last quarter. Finally, Northstar Group Inc. grew its position in Amazon.com by 3.8% during the third quarter. Northstar Group Inc. now owns 2,375 shares of the e-commerce giant’s stock worth $4,757,000 after buying an additional 86 shares in the last quarter. Institutional investors own 57.15% of the company’s stock.

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.07 and a quick ratio of 0.78. The stock has a market capitalization of $869.24 billion, a P/E ratio of 109.67, a PEG ratio of 3.72 and a beta of 1.58.

About Amazon.com (NASDAQ:AMZN)

Amazon.com, Inc engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through physical stores and retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk.

Further Reading: Cash Flow

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