Analysts at China Renaissance have increased their price target for Amazon.com, Inc. (NASDAQ: AMZN) from $278.00 to $300.00, according to a research report released on Monday. This adjustment reflects a positive outlook for the e-commerce giant, suggesting a potential upside of 22.84% from its current price. The firm has maintained a “buy” rating on Amazon’s stock, indicating confidence in its ongoing performance.
Several other financial institutions have also recently provided updates regarding Amazon’s stock. Weiss Ratings downgraded the company from a “buy (B-)” rating to a “hold (C+)” on October 24. Conversely, Jefferies Financial Group reaffirmed their “buy” rating on October 20. Citigroup raised their target price for Amazon from $270.00 to $320.00, also assigning a “buy” rating in a report published on October 27. Telsey Advisory Group similarly increased their price target from $265.00 to $300.00 while maintaining an “outperform” rating.
Amazon’s stock has received a mix of recommendations, with three analysts rating it as a Strong Buy, fifty as Buy, one as Hold, and one as Sell. The average rating stands at “Buy,” and the consensus price target is $290.76, according to data compiled by MarketBeat.
Quarterly Earnings Exceed Expectations
In addition to the revised price targets, Amazon recently reported its quarterly earnings results on October 30. The company announced earnings per share (EPS) of $1.95, surpassing analysts’ consensus estimates of $1.57 by $0.38. Revenue for the quarter reached $180.17 billion, outpacing expectations of $177.53 billion. This performance represents a 13.4% increase in revenue compared to the same quarter last year, when the company posted an EPS of $1.43.
Amazon has also provided guidance for Q4 2023, projecting an EPS that aligns with market expectations. Analysts predict an average of $6.31 EPS for the current fiscal year, reflecting optimism about the company’s financial trajectory.
Insider Transactions Raise Questions
In related news, several insider transactions have taken place at Amazon. CEO Matthew S. Garman sold 17,785 shares of the company on August 21, at an average price of $221.57, totaling $3,940,622.45. Following this sale, Garman retained 3,138 shares valued at approximately $695,286.66, marking an 85.00% reduction in his holdings.
Similarly, CEO Douglas J. Herrington sold 6,835 shares on the same day at an average price of $221.62, generating $1,514,772.70. After this transaction, Herrington owned 520,507 shares worth around $115,354,761.34, reflecting a 1.30% decrease in his stake. In the last quarter, company insiders sold a total of 95,411 shares valued at approximately $21,222,702. Currently, insiders hold 9.70% of Amazon’s stock.
Institutional investors continue to play a significant role in Amazon’s shareholding structure, owning 72.20% of the company. Recent activity shows that Fairway Wealth LLC increased its stake by 113.2% in the third quarter, while other firms, such as Carderock Capital Management and Sellwood Investment Partners, have also established new positions.
Amazon.com, Inc. operates in the retail sector, providing a range of consumer products and services through both online and physical stores. The company is divided into three segments: North America, International, and Amazon Web Services (AWS). It also produces electronic devices and media content, enhancing its diverse portfolio.
As analysts continue to revise their forecasts, Amazon remains a focal point for investors, reflecting both its market position and growth potential as it navigates the evolving landscape of e-commerce and technology.
