Analysis of Amazon.com (NASDAQ:AMZN) Position Boosted by Palumbo Wealth Management LLC

Key Facts and Data Points

• Palumbo Wealth Management LLC:

  • Increased position in Amazon.com by 8.1% during Q4.
  • Now owns 31,807 shares, worth $6,978,000.
  • Amazon.com represents 2.6% of the firm's portfolio, making it its 7th largest position.

• Other Investors:

  • Accordant Advisory Group Inc: Increased stake by 400.0%, now owns 125 shares worth $27,000.
  • Icon Wealth Advisors LLC: Increased holdings by 20.5%, now owns 150,661 shares worth $28,000.
  • Bull Oak Capital LLC: New stake valued at $45,000.
  • Quattro Financial Advisors LLC: Increased stake by 23.8%, now owns 234 shares worth $51,000.
  • Values First Advisors Inc.: New stake valued at $56,000.

• Institutional Ownership:

  • Total ownership by hedge funds and institutional investors: 72.20%.

Insider Trading

• VP:

  • Sold 8,833 shares on February 21st at an average price of $222.47, total transaction value: $1,965,077.51.
  • Ownership decreased by 6.87%, now owns 119,780 shares worth $26,647,456.60.

• CEO:

  • Sold 5,501 shares on February 18th at an average price of $228.44, total transaction value: $1,256,648.44.
  • Ownership decreased by 1.08%, now owns 505,318 shares worth $115,434,843.92.

• Total insider sales in last 90 days: 102,298 shares valued at $22,871,828.

• Insiders own 10.80% of the company’s stock.

Analysts' Price Targets

• Morgan Stanley: Raised price target from $230.00 to $280.00, "overweight" rating.

• Wells Fargo & Company: Lowered price target from $207.00 to $203.00, "equal weight" rating.

• Royal Bank of Canada: Raised price target from $255.00 to $265.00, "outperform" rating.

• Redburn Atlantic: Raised price target from $225.00 to $235.00, "buy" rating.

• HSBC: Raised price target from $225.00 to $270.00, "buy" rating.

• Consensus rating: "Moderate Buy" with an average target price of $260.65.

Amazon.com Financial Performance

• Q4 earnings per share (EPS): $1.86, beating estimates of $1.52.
• Return on equity (ROE): 24.25%.
• Net margin: 9.29%.
• Analysts forecast EPS for the current fiscal year: 6.31.

Stock Metrics

• Market cap: $2.10 trillion.
• P/E ratio: 35.80.
• PEG ratio: 1.50.
• Beta: 1.19.
• 50-day moving average: $221.65.
• 200-day moving average: $207.50.

Market Implications and Business Insights

• Investor Sentiment: Increased investments by institutional investors like Palumbo Wealth Management LLC, Accordant Advisory Group Inc, and Icon Wealth Advisors LLC indicate confidence in Amazon's long-term growth.
• Analyst Optimism: Multiple analysts have raised price targets, reflecting optimism about Amazon's future performance. The "Moderate Buy" consensus rating suggests a positive outlook with moderate expectations.
• Insider Sales: Significant insider selling by VP and CEO raises questions about their confidence in the company’s short-term prospects, despite strong financial performance.
• Competitive Dynamics: Amazon's dominance in e-commerce and AWS positions it as a key player in the tech industry. Continued investment in these segments is likely to drive future growth.
• Strategic Considerations: Amazon's focus on advertising, subscriptions, and physical retail expansion aligns with its long-term strategy to diversify revenue streams and maintain market leadership.

Long-Term Effects and Regulatory Impacts

• Amazon's ability to sustain high margins and invest in innovation will be critical for maintaining its competitive edge.
• Regulatory scrutiny, particularly in antitrust, could impact the company’s business model and growth strategies.