Normally, insider selling on a massive scale is cause for alarm with investors. For e-commerce Amazon (NASDAQ:AMZN) today, however, that was far from the case, as word emerged that executive chairman Jeff Bezos was planning a massive stock sale over the course of 2024. Yet, even as that news came out, Amazon shares were up nearly 8% in Friday afternoon’s trading.
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Bezos’ plan will allow him to sell as many as 50 million shares ahead of this time next year, reports note, though that plan will be subject to a few conditions. Assuming he can get a constant rate over the course of the year for said shares, the sale would net him around $8.6 billion. Bezos hasn’t actually sold any Amazon stock in the last three years now, with the last sale going back to 2021 and his last purchase—one whole share—kicked in on May 25, 2023. Meanwhile, several other Amazon insiders are also planning sales, including current CEO Andy Jassy.
This Is Why No One Minds
A massive sell-off from this many insiders would normally raise hackles all over the shop, so why are investors actually buying in harder? Well, the answer seems mostly connected to Amazon’s last earnings report, which delivered not only strong results but also strong guidance. Several analysts reiterated Buy ratings, with analysts at Roth MKM noting that consumer hesitancy and overall uncertainly likely won’t hurt Amazon much thanks to its sheer range of businesses. So basically, the idea that Amazon’s upper echelon is selling off ahead of a disaster seems pretty unlikely.
Is Amazon Stock a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 39 Buys assigned in the past three months, as indicated by the graphic below. After a 66.31% rally in its share price over the past year, the average AMZN price target of $204.29 per share implies 19% upside potential.
