On September 6, 2023, Adam Selipsky, CEO of Amazon Web Services, sold 1,000 shares of Amazon.com Inc (AMZN, Financial). This move is part of a broader trend of insider selling at the company, which we will explore in more detail below.
Who is Adam Selipsky?
Adam Selipsky is the CEO of Amazon Web Services (AWS), the cloud computing platform of Amazon.com Inc. He has been with the company since 2005 and has played a crucial role in the growth and success of AWS. Prior to his role at AWS, Selipsky held various leadership positions at Amazon, including Vice President of Marketing, Sales, and Support.
About Amazon.com Inc
Amazon.com Inc is a multinational technology company based in Seattle, Washington. It is one of the world's largest online retailers and a prominent player in other industries such as cloud computing, digital streaming, and artificial intelligence. Amazon.com Inc is known for its disruption of well-established industries through technological innovation and mass scale.
Insider Selling and Stock Price
Over the past year, the insider has sold a total of 133,940 shares and purchased 0 shares. This recent sale of 1,000 shares is part of a larger trend of insider selling at Amazon.com Inc. In total, there have been 52 insider sells and 1 insider buy over the past year.
The relationship between insider selling and stock price can be complex. While it's common to see insider selling as a negative signal, it's important to note that insiders may sell shares for a variety of reasons that are not necessarily related to their outlook on the company's future performance. For example, insiders might sell shares to diversify their investment portfolio or to meet personal financial needs.
Valuation
On the day of the insider's recent sale, shares of Amazon.com Inc were trading for $136.89, giving the company a market cap of $1,423.694 billion.
The price-earnings ratio of Amazon.com Inc is 108.65, which is higher than the industry median of 16.75 but lower than the company's historical median price-earnings ratio.
With a price of $136.89 and a GuruFocus Value of $184.64, Amazon.com Inc has a price-to-GF-Value ratio of 0.74. This suggests that the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sale of shares may raise some eyebrows, it's important to consider the broader context. The stock's current valuation suggests that it may still be a good investment opportunity.
