Amazon.com Inc. (NASDAQ:AMZN) director Daniel P. Huttenlocher recently sold a portion of his holdings in the company, according to a recent SEC filing. On November 19, Huttenlocher sold 1,237 shares of Amazon common stock at an average price of $199.06 per share, totaling approximately $246,237. This transaction was executed under a Rule 10b5-1 trading plan, which Huttenlocher had adopted on February 14, 2024.
In addition to the sale, Huttenlocher also acquired 2,473 shares on November 15 through the vesting of a restricted stock unit award. These shares were acquired at no cost, as they convert into common stock on a one-for-one basis. Following these transactions, Huttenlocher now owns 24,912 shares of Amazon stock directly.
In other recent news, Amazon recently received a "Buy" rating from Citi, who reiterated a price target of $252. This follows the beta launch of Amazon's new discount storefront, "Amazon Haul," aimed at attracting cost-conscious consumers. The e-commerce giant is also under scrutiny as India's Enforcement Directorate intensifies its investigation into alleged foreign investment law violations by Amazon and Flipkart.
In further developments, Amazon is considering a second multi-billion dollar investment in AI startup Anthropic, reinforcing the company's interest in the AI sector. Meanwhile, Amazon's partner, Rivian Automotive (NASDAQ:RIVN), remains confident in achieving its Q4 gross profit target, despite a recent revenue decline.
In the data center market, Asterion Industrial Partners and Telefonica (NYSE:TEF) have sold Spanish data center operator Nabiax to Aermont Capital. Lastly, Amazon is expanding its e-grocery services in Germany through a partnership with the Rohlik Group. These are some of the recent developments impacting these companies.
InvestingPro Insights
Amazon's recent stock performance and financial metrics provide additional context to Director Huttenlocher's transactions. According to InvestingPro data, Amazon's stock has shown strong momentum, with a 38.93% price total return over the past year and a 32.75% return year-to-date. This positive trend aligns with the company's robust financial performance, as evidenced by its revenue growth of 11.93% over the last twelve months, reaching $620.13 billion.
The company's valuation metrics present an interesting picture. While Amazon is trading at a relatively high P/E ratio of 42.74, an InvestingPro Tip suggests that it's trading at a low P/E ratio relative to near-term earnings growth. This is supported by the PEG ratio of 0.3, indicating that the stock might be undervalued when considering its growth prospects.
Another InvestingPro Tip highlights that 31 analysts have revised their earnings upwards for the upcoming period, signaling positive expectations for Amazon's future performance. This optimism is further reinforced by the company's strong profitability, with an operating income margin of 9.77% and a return on assets of 9.31% over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Amazon, providing a deeper understanding of the company's financial health and market position.
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