Jeff Bezos Sells Additional $2 Billion of Amazon Stock

Jeff Bezos, the founder and executive chair of Amazon.com, has sold another $2 billion worth of the company’s stock. This brings his total sales for the year up to approximately $6 billion.

The latest sales were made through planned transactions for about 12 million shares on Tuesday and Wednesday. Bezos received an average price of $169.97 per share.

According to regulatory filings, Bezos currently possesses 952.3 million Amazon shares. Additionally, the company’s most recent proxy report revealed that he controls the votes for another 266 million shares, as of February 2023, without investment power. This makes him Amazon’s top shareholder, even without factoring in these additional shares.

Earlier this month, Amazon disclosed Bezos’ intention to sell up to 50 million Amazon shares under a Rule 10b5-1(c) plan. This plan automatically executes trades when preset conditions such as price, volume, and timing are met. Filings indicate that Bezos has so far sold around 36 million shares, leaving him with approximately 14 million shares left to sell.

It is worth noting that the sale prices of Bezos’ stock this year are consistent with his previous major sales in November 2021, which were also part of planned transactions. When adjusted for Amazon’s 20-for-1 stock split in June 2022, the per-share sale prices from 2021 differ by only $2 to $3 from those in 2024.

Bezos Sells Amazon Stock at a Reduced Valuation

In recent news, it has been revealed that Jeff Bezos, the renowned founder of Amazon, is currently selling his shares in the company at a much reduced valuation. Reportedly, the average forward price-to-earnings ratio for Amazon stock on a next-12-months basis has dropped from about 69 in November 2021 to 39 as of Friday. This significant decrease is mainly attributed to the fact that expectations for earnings have increased substantially.

Amazon, when contacted for a comment on Bezos’ sales and the current stock valuation, did not respond immediately. However, it is worth mentioning that Amazon’s stock has been experiencing a notable surge in recent months.

Bezos initiated a planned-trading plan on November 7, when the shares were trading at approximately $141, resulting in a staggering gain of 68% year to date. The year concluded with the stock reaching $152, reflecting an impressive 81% gain.

On February 2, Amazon reported robust fourth-quarter earnings, further contributing to the positive trajectory of the company. It was on February 7 that the planned trades of the aforementioned trading plan were executed, coinciding with the stock reaching a value of $170.

It is important to note that “Inside Scoop” is a regular feature of our publication, highlighting noteworthy stock transactions by corporate executives, board members, prominent figures, politicians, and large shareholders. These individuals are obligated to disclose their stock trades with the Securities and Exchange Commission or other regulatory bodies due to their insider status.