Institutional Investors Adjust Stakes in Amazon Amid Strong Q3 Earnings

Supplemental Annuity Collective Trust of New Jersey slightly reduced its stake in Amazon.com, Inc. by 2.0% during the second quarter, holding 69,600 shares valued at approximately $15.27 million, representing 4.3% of its portfolio. Meanwhile, significant institutional investors such as Kingstone Capital Partners Texas LLC, Nuveen LLC, Goldman Sachs Group Inc., Vanguard Group Inc., and Amundi made major changes to their holdings in Amazon, with Kingstone notably increasing its position by over 500,000%. Institutional ownership of Amazon's stock stands at 72.2%. Amazon's stock opened at $233.30 with a market capitalization of $2.49 trillion, reflecting solid market performance with a price-to-earnings ratio of 35.56 and a price-to-earnings-to-growth ratio of 1.52. The company reported its latest quarterly earnings on October 30th, showing earnings per share (EPS) of $1.95, surpassing analyst expectations of $1.57. Revenue for the quarter reached $180.17 billion, exceeding estimates, with a 13.4% year-over-year increase. Amazon’s net margin and return on equity were 10.54% and 23.84%, respectively. Analysts anticipate the company’s EPS to reach 6.31 for the current fiscal year, continuing a trend of financial growth. Recent insider activity includes notable stock sales by Amazon's Director Daniel P. Huttenlocher and CEO Matthew S. Garman, who reduced their holdings by 4.52% and 73.91%, respectively. Over the past 90 days, insiders have sold over 82,000 shares valuing more than $19 million, indicating active portfolio adjustments. Analyst sentiment on Amazon remains largely positive, with firms like Barclays, Cowen, BMO Capital Markets, and JMP Securities reiterating favorable ratings and price targets ranging around $250 to $300. The consensus among analysts is a moderate buy, with market analysts citing Amazon’s diversified business operations including retail sales, advertising, subscription services, cloud computing via AWS, and electronic device manufacturing. Amazon’s institutional investor dynamics and strong quarterly performance are key factors influencing market confidence. As the company continues to expand its market presence and operational segments, insurance industry stakeholders and portfolio managers should monitor institutional buying patterns and earnings results to inform investment and risk management decisions related to technology sector exposure.