Amazon (NASDAQ: AMZN) is experiencing sustained insider trading activity as its stock valuation holds above the $200 mark. Once again, this trading activity involves founder and executive chairperson Jeff Bezos.
Details of the sale indicate that Bezos disposed of over 5.8 million shares valued at around $1.23 billion in a transaction spanning two days, from November 6 to November 7, 2024, according to regulatory filings with the Securities and Exchange Commission.
The shares were sold at $200.39 to $211.56 per share, leaving Bezos’s stake in the company at 920 million shares.
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A week earlier, regulatory filings on November 1 showed that Bezos also sold shares worth over $3 billion, adding to his other sales recorded in July.
These sales are guided by the Rule 10b5-1 trading plan, which allows insiders to set up a trading schedule in advance to avoid concerns about insider trading.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Notably, Bezos’s trades have attracted attention as they seem to align with a limit order to sell shares above $200. Meanwhile, the cash acquired from the sales has mainly been used to fund Bezos’s private initiatives, such as his space company Blue Origin.
AMZN stock builds on Trump’s win and impressive Q3 earnings
It’s worth noting that these sales come when the stock market is rallying in response to positive momentum surrounding Donald Trump’s election win.
Amazon’s stock has built on the momentum, adding to the impact of the company’s impressive third-quarter results. For the quarter ending September 2024, Amazon reported earnings per share of $1.43, beating expectations of $1.16, and revenue reached $157.29 billion.
At the close of the last trading session, AMZN was valued at $208.18, ending the day down 0.89%. On the weekly chart, the stock is up nearly 6%.
Following the recent trading patterns, a trading expert with the pseudonym Paper Gains pointed out in an X post on November 8 that AMZN has confirmed a long-awaited breakout from a four-year consolidation range, signaling the potential for upward movement in the coming year.
After a strong earnings report and the recent U.S. presidential election, the expert noted that Amazon’s stock broke above key resistance levels, setting new price targets for 2025 in the $300-$350 range.
Meanwhile, Amazon’s growth potential largely depends on its expansion into artificial intelligence (AI), where it is making additional inroads.
In addition to the tech giant’s investment in OpenAI, new reports indicate Amazon intends to make a multibillion-dollar investment in AI startup Anthropic.
It remains to be seen if these developments will inspire the stock’s growth and potentially influence insider trading activity for the e-commerce giant.
Featured image via Shutterstock
