American Century Companies Inc. has reduced its stake in Motorola Solutions, Inc. (NYSE: MSI) by 18.6% during the third quarter of 2024. According to its latest filing with the Securities and Exchange Commission (SEC), the investment firm sold 59,276 shares, leaving it with a total of 259,555 shares valued at approximately $118.69 million. This divestiture indicates a strategic adjustment in American Century’s portfolio, as it held about 0.16% of Motorola Solutions prior to the sale.
Several other institutional investors have also made moves regarding their holdings in Motorola Solutions. For instance, Orion Capital Management LLC acquired a new stake worth around $25,000, while United Community Bank increased its holdings by 81.3%, owning now 58 shares valued at $27,000. Additionally, Halbert Hargrove Global Advisors LLC, Field & Main Bank, and Salomon & Ludwin LLC all established new positions, with valuations between $33,000 and $38,000.
Currently, institutional investors collectively own 84.17% of Motorola Solutions’ stock.
Insider Sales and Financial Performance
In other developments, insider trading activity has been notable. On February 26, 2024, Director Kenneth D. Denman sold 434 shares of Motorola Solutions at an average price of $470.12, totaling approximately $204,032.08. Following this transaction, Denman retained 7,153 shares valued at around $3.36 million, marking a 5.72% decrease in his ownership.
Similarly, CEO Cynthia Yazdi sold 7,000 shares for a total of $3.30 million. Post-sale, her remaining ownership stands at 9,529 shares, valued at approximately $4.49 million, reflecting a substantial 42.35% reduction. Over the past three months, insiders have sold a total of 100,634 shares, amounting to $47.19 million.
Motorola Solutions opened at $486.31 on February 27, 2024. The company has recorded a debt-to-equity ratio of 3.47 and a current ratio of 1.04. It has experienced a 52-week low of $359.36 and a high of $492.22, with a market capitalization of $80.56 billion and a PE ratio of 38.11. The stock’s 50-day moving average price is $413.39.
Motorola Solutions reported its quarterly earnings on February 11, 2024, announcing earnings per share of $4.59, exceeding analysts’ expectations of $4.35. The company also generated revenue of $3.38 billion, surpassing the consensus estimate of $3.34 billion. This represents a year-over-year revenue increase of 12.3%, and the company achieved a net margin of 18.44% with a return on equity of 110.75%.
Dividend Announcement and Analyst Ratings
Additionally, Motorola Solutions has declared a quarterly dividend of $1.21, set to be paid on April 15, 2024. Shareholders of record on March 20, 2024 will receive this dividend, translating to an annual yield of 1.0% based on a total annualized payout of $4.84. The company’s dividend payout ratio currently stands at 37.93%.
Recent analyst ratings further reflect confidence in Motorola Solutions’ performance. Piper Sandler has reaffirmed an “overweight” rating with a price target of $499.00, while Morgan Stanley maintains an “overweight” rating, adjusting its price target to $470.00. JPMorgan Chase & Co. has increased its price objective from $515.00 to $520.00. Among analysts, one has rated the stock as a strong buy, eight have assigned buy ratings, and two have issued hold ratings, resulting in a consensus rating of “Moderate Buy” with an average target price of $497.14 according to MarketBeat.
Motorola Solutions, Inc. specializes in mission-critical communications and analytics solutions for both public safety and commercial sectors. The company designs and manufactures communications equipment that facilitates reliable operations in high-pressure environments, serving first responders, government agencies, and enterprises with a focus on secure connectivity and situational awareness.
