Amazon (AMZN) Stock: Institutional Investors Increase Holdings After Strong Q1 Earnings Beat

TLDR

Table of Contents

Amazon stock received a Momentum Style Score of B from Zacks, with shares up 6.4% over four weeks and 11.2% over the past year
Investment Management Corp of Ontario increased its AMZN holdings by 6.8% in Q4, making it their third-largest position worth $201 million
Amazon beat Q1 earnings expectations with $1.59 per share versus $1.38 consensus, while revenue of $155.67 billion topped estimates
Multiple institutional investors boosted their Amazon stakes during Q4, with 72.2% of shares now held by institutions
Wall Street analysts maintain mostly bullish outlook with 44 buy ratings versus 4 holds, though some have trimmed price targets

Amazon stock is catching the attention of momentum investors and institutional money managers. The e-commerce giant earned a Momentum Style Score of B from Zacks Research.

The stock has shown mixed short-term performance. Shares dropped 2.2% over the past week but gained 6.4% over four weeks.

Over the longer term, Amazon has delivered solid returns. The stock climbed 11.2% over the past year.

Trading volume remains healthy with an average of 45.88 million shares changing hands over the last 20 days. This suggests continued investor interest in the name.

Amazon’s earnings picture looks encouraging for momentum-focused investors. Six analysts raised their earnings estimates for fiscal 2025 in the past 60 days.

The Zacks Consensus Estimate increased by $0.07 to $6.31 per share. The company has a track record of beating expectations with an average earnings surprise of 20.7%.

Institutional Money Pours In

Investment Management Corp of Ontario made a big bet on Amazon during the fourth quarter. The firm increased its position by 6.8%, adding 58,413 shares.

The investment manager now owns 916,487 Amazon shares worth $201.07 million. This makes Amazon their third-largest holding, representing 6.6% of their portfolio.

Other major institutions also boosted their Amazon stakes during Q4. Ionic Capital Management grew its position by 92% to 2,400 shares worth $527,000.

Jacobs Levy Equity Management increased its holdings by 22.4%. The firm now owns 2.27 million shares valued at $497.8 million.

Janus Henderson Group lifted its stake by 7.1% to 32.66 million shares worth $7.17 billion. Junto Capital Management boosted its holdings by 194.4% to 374,734 shares.

Overall, institutional investors and hedge funds now own 72.2% of Amazon’s outstanding shares. This level of institutional ownership often provides price stability.

Strong Earnings Beat Expectations

Amazon delivered solid first-quarter results that beat analyst expectations across key metrics. The company reported earnings of $1.59 per share, beating the consensus estimate of $1.38 by $0.21.

$AMZN earnings:
Revenue: $155.6 billion, est: $155.1 billion✅
EPS: $1.59, est: $1.36 ✅
Down 4% 🩸 pic.twitter.com/9ilUFzqsoJ
— John Trades MBA (@JPATrades) May 1, 2025

Revenue came in at $155.67 billion, topping the $154.96 billion estimate. This represented an 8.6% increase compared to the same period last year.

The company’s profitability metrics looked healthy. Amazon posted a net margin of 9.29% and return on equity of 24.25%.

These results compare favorably to the prior year when Amazon earned $0.98 per share. The earnings growth shows the company’s improving operational efficiency.

Amazon’s stock currently trades at $200.99 with a market cap of $2.13 trillion. The shares have a 12-month trading range between $151.61 and $242.52.

Insider activity has been mixed recently. CEO Andrew Jassy sold 19,872 shares on May 21st at an average price of $201.30 for total proceeds of $4 million.

Another executive, Douglas Herrington, sold 2,500 shares on May 1st at $190.67 per share. Corporate insiders still own 9.7% of the company’s stock.

Wall Street analysts remain largely bullish on Amazon despite some recent price target cuts. Forty-four analysts rate the stock a buy while only four have hold ratings.

The consensus price target sits at $244.09, suggesting upside potential from current levels. However, several firms have trimmed their targets recently due to market conditions.

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