Some Motorola Solutions, Inc. (NYSE:MSI) shareholders may be a little concerned to see that the Senior Vice President of Strategy & Ventures, Rajan Naik, recently sold a substantial US$2.0m worth of stock at a price of US$374 per share. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.
Motorola Solutions Insider Transactions Over The Last Year
Notably, that recent sale by Rajan Naik is the biggest insider sale of Motorola Solutions shares that we've seen in the last year. That means that even when the share price was below the current price of US$384, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 37% of Rajan Naik's holding.
In the last year Motorola Solutions insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Motorola Solutions better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Motorola Solutions Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Motorola Solutions insiders own 0.4% of the company, currently worth about US$224m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Motorola Solutions Insiders?
Insiders sold Motorola Solutions shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Motorola Solutions is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Motorola Solutions has 3 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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