What Analyst Ratings Spell For Amazon.com, Inc. (AMZN)?

Analysts at BofA/Merrill lifted target price for shares of Amazon.com, Inc. (NASDAQ:AMZN) but repeated their Buy recommendation for the stock in their opinion released on January 09. The price target has been raised from $2000 to $2100. Analysts at Aegis Capital are sticking to their Buy recommendation. However, on October 30, they lifted target price for these shares to $2225 from $2063. Analysts at Aegis Capital, made their first call for the stock with a Buy rating, according to a research note that dated back to October 30.

The number of Amazon.com, Inc. (NASDAQ:AMZN) shares shorted has climbed by 77,802 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a increase in total short interest for AMZN, to 5,704,760, a surge of 1.38% since December 14th. Average daily volume for Amazon.com, Inc. at the December 31st settlement jumped to 9,091,876, as compared to 7,097,887 at the December 14th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the AMZN stock we see that the average analyst recommendations at 1.7 suggests selling these shares.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Amazon.com, Inc. (NASDAQ:AMZN)’s prospects. The earliest insider trade took place on 11/20/2018. Wilke Jeffrey A parted with a total of 1.23 thousand shares of company at average share price of $1506.94. The total for the sales was set at $1.85 million. After this transaction, the CEO Worldwide Consumer account balance stood at 61.81 thousand shares. The stock grew 8.87 percent since that insider sale. On 11/19/2018, Wilke Jeffrey A, CEO Worldwide Consumer, sold 1.65 thousand shares at a price per share of $1527.97. This removed 2.51 million shares from the insider’s fortune and the stock saw a 7.37 percent rally in value since the news became public. This transaction left 63.04 thousand shares in the CEO Worldwide Consumer account. On 11/15/2018, Director Huttenlocher Daniel P performed a sale transaction worth $285.96 thousand. This sale at $1579.89 each has eliminated 0.18 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.84 percent increase since the transaction was reported. The insider now is left with 0.57 thousand shares remaining in the account. Reynolds Shelley, who performs the Vice President job, sold 0.44 thousand shares for $687.45 thousand. The disposal occurred on 11/15/2018 was priced at $1573.11 per share. The share price soared 4.29 percent since the reporting date. Reynolds Shelley now left with a stake of 6.12 thousand AMZN stock worth $10.04 million after the insider selling.

Amazon.com, Inc. (AMZN) is expected to jump by 29.72 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $2450-month high price target. This represents a whopping 49.34 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2100, which represents a return potential of 28.01 percent when compared to the closing price of the stock of $1640.56 on Friday, January 11. The lowest price target for the stock is $1900 — slightly more than 15.81 percent from AMZN’s current share price.

The shares are currently floating around the first support level of $1631.09. Below this, the next support is placed in the zone of $1621.62. Till the time, the AMZN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.4 on daily chart, which may remain a cause for concern. If the price breaks below $1621.62 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1655.16 mark may result into a pull-back move towards $1669.76 level.

AMZN shares dropped -15.66 points or -0.95 percent on Friday to $1640.56 with a light trade volume of 4.662 million shares. After opening the session at $1640.55, the shares went as high as $1660.294 and as low as $1636.22, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $810 billion and now has 493.64 million shares outstanding. Amazon.com, Inc. (AMZN) stock has lost -0.16 percent of market value in 21 trading days.

AMZN stock has a trailing 3-year beta of 1.64, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $16.25 a share in the trailing twelve months. The stock’s value has surged 9.23 percent year to date (YTD) against a rise of 30.79 percent in 12 month’s time. The company’s shares still trade -19.99 percent away from its 1-year high of $2050.50 and 30.57 percent up from 52-week low of $1256.46. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Amazon.com, Inc. (AMZN) are trading at a P/E ratio of 97.34 times earnings reported for the past 12 months. The industry AMZN operates in has an average P/E of 65.3. Its P/E ratio went as low as 153.07X and as high as 676.78 over the 5-year span. Further, it is sporting a 3.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.67. 39.9 percent is the gross profit margin for Amazon.com, Inc. and operating margin sits at 4.9 percent. Along with this, the net profit margin is 4 percent.