Motorola Solutions Cuts Stake, Posts Strong Quarterly Earnings, and Announces Dividend Changes
Catalyst Capital Advisors LLC reduced its position in Motorola Solutions, Inc. (NYSE: MSI) by 50.3% during the second quarter, as reported in its latest filing with the Securities and Exchange Commission (SEC). Following the sale of 5,529 shares, Catalyst now holds 5,453 shares of the communications technology firm, valued at approximately $2.29 million.
In addition to Catalyst’s move, several other institutional investors also made adjustments to their stakes in Motorola Solutions. Signature Resources Capital Management LLC initiated a new position, acquiring shares worth $25,000. Similarly, Saudi Central Bank purchased shares valued at $29,000 during Q1, while Fort Vancouver Investment Management LLC and Alpine Bank Wealth Management followed suit with investments of $37,000 and $40,000, respectively. Notably, Meeder Asset Management raised its holdings by 47.1%, now owning 103 shares worth $45,000.
As of the latest reports, institutional investors and hedge funds own a significant 84.17% of Motorola Solutions’ stock.
Stock Performance & Market Indicators
Motorola Solutions opened at $444.24 on Friday, maintaining a market cap of $74.01 billion. The company's price-to-earnings (P/E) ratio stands at 35.77, and its price-to-earnings-growth (PEG) ratio is 3.57. Over the past 52 weeks, the stock has fluctuated between a low of $388.90 and a high of $507.82. The company’s 50-day moving average is $463.44, with a 200-day moving average of $436.50.
The company also maintains solid liquidity, with a quick ratio of 1.54 and a current ratio of 1.73, indicating a healthy ability to cover short-term liabilities. Motorola’s debt-to-equity ratio is reported at 3.86.
Quarterly Earnings Beat Expectations
Motorola Solutions recently posted impressive Q2 results. The company reported earnings of $3.57 per share, surpassing analysts’ estimates of $3.36 by $0.21. The revenue for the quarter was $2.77 billion, slightly exceeding the projected $2.74 billion. The company demonstrated robust profitability, with a return on equity (ROE) of 134.30% and a net margin of 19.08%. This performance reflects a 5.2% revenue increase compared to the same period last year, when it posted $3.24 in earnings per share.
For Q3 2025, Motorola Solutions expects earnings between $3.82 and $3.87 per share. For the full year, it has forecast a range of $14.88 to $14.98 per share, with analysts predicting an average of $13.55 for FY 2025.
Dividend Announcement and Insider Transactions
Motorola also declared a quarterly dividend of $0.0109 per share, paid on October 15th to investors of record as of September 15th. This translates to an annualized dividend of $0.04, yielding a minimal 0.0%. The company’s payout ratio stands at 35.10%.
In the realm of insider transactions, COO John P. Molloy sold 37,514 shares at an average price of $462.38, totaling $17.35 million. After the sale, Molloy’s remaining stake in Motorola Solutions is valued at $27.43 million. Senior VP James A. Niewiara also sold 1,700 shares at an average price of $485.43, worth $825,231. This brings the total number of shares sold by insiders over the past three months to 248,493, valued at $116.85 million.
Analysts' Outlook on Motorola Solutions
Motorola Solutions has garnered positive attention from analysts, with eight rating the stock as a "Buy" and three giving it a "Hold" recommendation. Recently, Barclays revised its price target from $511 to $509, maintaining an “overweight” rating. Piper Sandler initiated coverage with a "neutral" rating and a price target of $495. Meanwhile, Evercore ISI raised its target from $500 to $525, calling the stock an “outperform.”
Despite strong analyst sentiment, MarketBeat analysts have identified five other stocks that are currently rated more favorably for long-term growth potential.
Motorola Solutions continues to lead in public safety and enterprise security, providing critical infrastructure, devices, and software solutions to government, public safety, and commercial sectors across the United States, UK, Canada, and internationally. It operates in two key segments: Products and Systems Integration, and Software and Services, ensuring robust, private communications networks and video security solutions for its clients.
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