In a recent filing with the Securities and Exchange Commission (SEC), Laffer Tengler Investments Inc. revealed a 3.7% reduction in its position in Amazon.com, Inc. (NASDAQ: AMZN) during the fourth quarter. The firm now holds 44,802 shares of the e-commerce giant after selling 1,710 shares, which represents approximately 1.9% of its total holdings, making Amazon its 13th largest investment. As of the end of the last quarter, Laffer Tengler’s stake in Amazon was valued at $9,829,000.
This adjustment in holdings comes amid a broader trend of institutional investors reassessing their positions in Amazon. Several firms have recently made significant moves regarding their stakes in the company. For instance, Accordant Advisory Group Inc. increased its stake by an impressive 400%, now owning 125 shares valued at $27,000 after acquiring an additional 100 shares. Similarly, Compass Planning Associates Inc. entered the fray with a new stake valued at $51,000, while Quattro Financial Advisors LLC raised its stake by 23.8%, now holding 234 shares worth $51,000.
Iron Horse Wealth Management LLC also made headlines by increasing its stake in Amazon by 64.4%, bringing its total to 286 shares valued at $63,000. Collectively, institutional investors own approximately 72.20% of Amazon’s stock, indicating strong confidence in the company’s long-term prospects despite recent market fluctuations.
Wall Street analysts remain optimistic about Amazon’s future, with several firms raising their price targets for the stock. Barclays recently increased its target from $235.00 to $265.00, maintaining an “overweight” rating. DA Davidson also upped its price objective from $235.00 to $280.00, while Maxim Group set a new target of $280.00, both issuing “buy” ratings. JPMorgan Chase & Co. followed suit, raising its price objective from $250.00 to $280.00, reinforcing the positive sentiment surrounding Amazon.
Despite these optimistic projections, Amazon’s stock has faced challenges, recently opening at $171.00, down 4.2%. The company has experienced a 52-week low of $151.61 and a high of $242.52. With a market capitalization of $1.81 trillion, Amazon’s P/E ratio stands at 30.92, and its P/E/G ratio is 1.50, indicating a premium valuation relative to its growth prospects.
In its latest quarterly earnings report, Amazon exceeded analysts’ expectations, posting earnings of $1.86 per share, surpassing the consensus estimate of $1.52 by $0.34. The company reported a net margin of 9.29% and a return on equity of 24.25%. Analysts predict that Amazon will post earnings of 6.31 per share for the current year, reflecting continued growth potential.
Insider trading activity has also been notable, with CEO Douglas J. Herrington selling 27,500 shares at an average price of $230.27, totaling approximately $6.33 million. Following this transaction, Herrington retains 497,067 shares valued at around $114.46 million. Additionally, CEO Andrew R. Jassy sold 20,784 shares for about $4.59 million, reducing his ownership slightly to 2,118,886 shares valued at $467.53 million.
In summary, while Laffer Tengler Investments Inc. has reduced its stake in Amazon, the overall sentiment among institutional investors and analysts remains positive. With strong earnings performance and optimistic price targets from several financial institutions, Amazon continues to be a focal point for investors navigating the complexities of the current market. As the e-commerce giant adapts to changing consumer behaviors and economic conditions, its long-term growth potential remains a topic of interest for both analysts and investors alike.
