We wouldn’t blame Motorola Solutions, Inc. (NYSE:MSI) shareholders if they were a little worried about the fact that Mark Hacker, the Executive VP recently netted about US$2.3m selling shares at an average price of US$185. Probably the most concerning element of the whole transaction is that the dump amounted to 84% of their entire holding.
The Last 12 Months Of Insider Transactions At Motorola Solutions
The Chairman & CEO, Gregory Brown, made the biggest insider sale in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$148 each. That means that even when the share price was below the current price of US$186, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 5.3% of Gregory Brown’s stake.
In the last year Motorola Solutions insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Motorola Solutions Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Motorola Solutions insiders own 0.3% of the company, currently worth about US$105m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Motorola Solutions Tell Us?
Insiders haven’t bought Motorola Solutions stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in Motorola Solutions, you should check out this free report on analyst forecasts for the company.
Of course Motorola Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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