Form 4: Amazon CEO Douglas Herrington Sells Shares Under 10b5-1 Trading Plan

Amazon's CEO of Worldwide Stores, Douglas Herrington, sold 3,500 shares of company stock on June 3, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Douglas Herrington, CEO of Worldwide Amazon Stores, sold 3,500 shares of Amazon stock on June 3, 2024.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on November 6, 2023.
• 2,000 shares were sold at a weighted average price of $176.9625, with prices ranging from $176.35 to $177.32.
• An additional 1,500 shares were sold at a weighted average price of $177.7327, with prices ranging from $177.38 to $178.30.
• Following these transactions, Herrington directly owns 523,253 shares of Amazon stock and indirectly owns 6,573.22 shares through an Amazon.com 401(k) plan account.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing of stock sales by an executive, which is neither positive nor negative for the company's outlook. It is a neutral event.

Industry Context

The filing is a routine disclosure of stock sales by a company executive under a pre-arranged trading plan, which is a common practice to avoid accusations of insider trading. This type of filing is typical for publicly traded companies and their executives.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a standard practice among executives at publicly traded companies, including Amazon's competitors such as Apple (AAPL), Microsoft (MSFT), and Google (GOOGL).
• These plans allow executives to sell shares at predetermined times and prices, mitigating the risk of insider trading allegations.
• The volume of shares sold by Herrington is relatively small compared to the total outstanding shares of Amazon, which is typical for these types of transactions.

Stakeholder Impact

• The stock sales by the CEO are unlikely to have a significant impact on shareholders, employees, customers, or suppliers due to the relatively small volume of shares sold and the pre-planned nature of the transactions.

Key Dates

Keywords

insider trading, stock sale, Form 4, 10b5-1 plan, executive stock, Amazon, AMZN, Douglas Herrington