Form 4: Amazon Executive Douglas Herrington Sells 3,500 Shares Under 10b5-1 Trading Plan

Amazon's CEO of Worldwide Amazon Stores, Douglas Herrington, sold 3,500 shares of common stock at $184.8 per share on October 1, 2024, under a pre-arranged trading plan.

Summary

• Douglas Herrington, CEO of Worldwide Amazon Stores, sold 3,500 shares of Amazon common stock on October 1, 2024.
• The sale was executed at a price of $184.8 per share.
• This transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted on November 6, 2023.
• Following the transaction, Herrington directly owns 514,160 shares of Amazon stock.
• He also indirectly owns 6,580.083 shares through the Amazon.com 401(k) plan.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged trading plan, with no indication of positive or negative sentiment.

Risks

• Executive stock sales can sometimes be perceived negatively by the market, although this sale was pre-planned.

Industry Context

Executive stock sales are a common occurrence in publicly traded companies, often done under pre-arranged trading plans to avoid accusations of insider trading. This transaction is not unusual for a company of Amazon's size.

Comparison to Industry Standards

• Many executives at large tech companies like Apple, Microsoft, and Google use 10b5-1 trading plans to manage their stock holdings.
• These plans allow for scheduled sales to avoid any appearance of trading on non-public information.
• The volume of shares sold by Herrington is relatively small compared to the total outstanding shares of Amazon, which is typical for such transactions.

Stakeholder Impact

• The sale is unlikely to have a significant impact on shareholders, employees, customers, or suppliers due to its small size and pre-planned nature.

Key Dates

Keywords

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