On May 22, 2023, Brian Olsavsky, Senior Vice President and CFO of Amazon.com Inc (AMZN, Financial), sold 16,800 shares of the company's stock. This move comes as part of a series of transactions by Olsavsky over the past year, during which he has sold a total of 65,520 shares and purchased none.
Who is Brian Olsavsky?
Brian Olsavsky has been with Amazon.com Inc since 2002 and has held various positions within the company. He was appointed as the Senior Vice President and CFO in June 2015. In his role, Olsavsky is responsible for overseeing the company's global financial activities, including controllership, tax, treasury, analysis, investor relations, internal audit, and financial operations.
Amazon.com Inc's Business Description
Amazon.com Inc is a multinational technology company based in Seattle, Washington. It focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. The company is known for its disruption of well-established industries through technological innovation and mass scale. Amazon is one of the world's largest online retailers and a prominent cloud services provider. The company was founded by Jeff Bezos in 1994 and has since grown to become a global powerhouse in the technology sector.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Amazon.com Inc, while there have been 42 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of the current market conditions to cash in on their holdings.
On the day of Brian Olsavsky's recent sale, Amazon.com Inc's shares were trading at $116.69 apiece, giving the stock a market cap of $1,179,940.674 million. The price-earnings ratio is 273.81, which is significantly higher than the industry median of 15.9 and the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and historical performance.
However, with a price of $116.69 and a GuruFocus Value of $199.01, Amazon.com Inc has a price-to-GF-Value ratio of 0.59. This indicates that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent sale of 16,800 shares by Amazon.com Inc's Senior Vice President and CFO, Brian Olsavsky, adds to the trend of insider selling over the past year. While the stock's price-earnings ratio suggests that it may be overvalued compared to its industry peers and historical performance, the price-to-GF-Value ratio indicates that the stock is significantly undervalued based on its intrinsic value. Investors should consider these factors and conduct further research before making any investment decisions regarding Amazon.com Inc.
