As of the fourth quarter, Washington Trust Advisors Inc. has reduced its holdings in Amazon.com, Inc. (NASDAQ: AMZN) by 5.5%, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor sold 14,148 shares of the e-commerce giant’s stock, leaving it with 241,025 shares and making Amazon.com its 16th largest position—comprising about 2.2% of its investment portfolio. Currently trading at $115.00 per share on Friday and boasting a market capitalization of $1.18 trillion, Amazon operates with three main segments: North America, International, and Amazon Web Services (AWS).
The North America segment involves retail sales of consumer products from both sellers and subscriptions through various online and physical stores within North America. With a PE ratio of 273.81, a price-to-earnings-growth ratio of four, and beta of 1.26 as well as high-lows for the past year at $146.57 and $81.43 respectively, Warren Buffet’s Berkshire Hathaway still marks one of its largest shareholders.
Although this may seem like a significant reduction in holdings from Washington Trust Advisors Inc., it is important to note that they are not alone in making changes to their investments amid volatile market conditions caused by effects generated by Covid-19 pandemic throughout all sectors , including technology giants such as Facebook Inc., Google parent Alphabet Inc., Apple Inc., etc.
Reducing holdings or positions could be for various reasons; investors may attempt to curtail exposure to certain markets or companies due to a plethora of reasons ranging from the perceived overvaluation that could translate into less return on investment or prospects for potential reversals in trend downwards considering specificities of individual businesses.
Investors’ decisions are contingent on numerous factors including economic data such as inflation risks and employment reports made available frequently by governments worldwide amongst other variables. While the pandemic has not spared any sector, it is worthwhile for stakeholders to stay informed of such changes in holdings as it could significantly impact both short-term and long-term decisions on individual investors’ portfolios.
Amazon.com Soars in Stock Market After Crushing Earnings Expectations
Amazon.com, Inc. has been making waves in the stock market with its recent earnings report crushing expectations and causing a rush of investment from institutional investors and hedge funds. Several equities analysts issued reports on AMZN shares, with a consensus rating of “Moderate Buy” and an average price target of $143.12, boosting investor confidence even further.
The multinational technology giant is primarily known for its online retail shopping services and operates through the following segments: North America, International, and Amazon Web Services (AWS). The North America segment focuses on the retail sales of consumer products through online and physical stores.
In its latest quarterly earnings report released on Thursday, April 27th, Amazon.com reported a significant beat in EPS at $0.31 compared to the consensus estimate of $0.22 by $0.09. The company had revenue of $127.36 billion during the quarter, up 9.4% compared to the same quarter last year, solidifying its position as a powerhouse in global e-commerce.
Investment activity followed suit with Bridgefront Capital LLC leading the charge by buying a new position in shares worth approximately $228,000 during the first quarter. Meanwhile, Krane Funds Advisors LLC raised its stake in Amazon.com by 239.1% over one quarter to own 78 shares worth $254,000.
However, Amazon’s C-suite executives also made headlines when CEO Adam Selipsky sold 2,299 shares for a total value of $230,681.66 while VP Shelley Reynolds sold 3,100 shares for $358,360 on May 22nd.
Despite these insider sales totaling 75,144 company shares at $8,405,887 in value over one quarter alone; institutional investors still have faith in Amazon.com’s long-term ability to return big gains due to its steady growth trajectory and diversified business operations.
With institutional investors owning up to 57.64% of Amazon.com’s stock, the company looks poised to continue its dominance in e-commerce and maintain its status as a top-tier investment opportunity for years to come.
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