Don't Ignore The Insider Selling In Motorola Solutions
Motorola Solutions, Inc. MSI | 472.45 472.45 | +0.57% 0.00% Pre |
We wouldn't blame Motorola Solutions, Inc. (NYSE:MSI) shareholders if they were a little worried about the fact that Judy Lewent, the Independent Director recently netted about US$3.3m selling shares at an average price of US$496. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Motorola Solutions
Notably, that recent sale by Judy Lewent is the biggest insider sale of Motorola Solutions shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$489. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year Motorola Solutions insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Motorola Solutions insiders own about US$282m worth of shares (which is 0.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Motorola Solutions Insider Transactions Indicate?
An insider sold Motorola Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.
But note: Motorola Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.