Motorola Solutions Inc. has garnered attention from institutional investors in recent months, with Principal Financial Group Inc. boosting its stake in the communications equipment giant by 5.3% in the third quarter of 2023. According to the company's Form 13F filing with the SEC, Principal Financial Group now owns 368,660 shares of Motorola Solutions, valued at $168.6 million, after acquiring an additional 18,443 shares during the quarter. This increase further solidifies their position, now representing 0.22% of the company’s total stock.
A number of other institutional investors also adjusted their holdings. For instance, Valeo Financial Advisors LLC increased its Motorola Solutions shares by 2.3% during Q2, acquiring 21 additional shares to bring its total to 944 shares, valued at around $397,000. Similarly, Advisors Capital Management LLC raised its position by 1.0%, now owning 2,452 shares valued at approximately $1.03 million. Kingsview Wealth Management LLC also slightly increased its holdings by 0.3%, now controlling 9,115 shares worth $3.83 million. Other noteworthy increases came from Rexford Capital Inc. and IFC Advisors LLC, both of whom raised their stakes by 0.6% in the third quarter.
As of now, a substantial 84.17% of Motorola Solutions stock is owned by hedge funds and institutional investors, reflecting a strong institutional confidence in the company’s market potential.
Financial Performance and Dividend Update
In its latest earnings report, released on October 31st, Motorola Solutions reported impressive results for Q3, surpassing analysts’ expectations. The company earned $4.06 per share (EPS), beating the consensus estimate of $3.85 by $0.21. Revenue for the quarter totaled $3.01 billion, slightly ahead of expectations of $2.99 billion. The year-over-year growth was notable, with revenue up 7.8% compared to the same quarter last year.
The company’s net margin stood at 18.71%, and its return on equity was an impressive 118.48%. Despite a dip from its 12-month high, Motorola Solutions’ stock price remains resilient, with a market cap of $67.05 billion. As of the last market open, the stock was priced at $402.58, with a 50-day moving average of $381.46 and a 200-day moving average of $421.21.
In addition to its strong earnings performance, Motorola Solutions recently increased its quarterly dividend to $1.21 per share, an annualized dividend of $4.84. This is a significant jump from the previous quarterly payout of $0.01. The higher dividend reflects the company’s continued growth and robust cash flow, offering a dividend yield of 1.2%.
Analyst Opinions and Stock Target Adjustments
Recent reports from various research firms reveal a mixed outlook on Motorola Solutions. On January 27th, Weiss Ratings upgraded the company from a "hold" to a "buy," citing its strong earnings performance and market position. However, Barclays lowered its price target for Motorola Solutions from $509 to $495, while maintaining an "overweight" rating. In contrast, Piper Sandler raised the company's stock rating from "neutral" to "overweight," but slightly reduced its price target from $465 to $443.
Northcoast Research also raised its rating on Motorola Solutions from "neutral" to "buy," with a price target of $450. Despite some differences in target prices, analysts remain largely positive on the company’s outlook, with eight analysts rating it as a “buy” and two as a “hold.”
About Motorola Solutions
Motorola Solutions is a leader in mission-critical communications, providing both hardware and software solutions for public safety, government, and enterprise sectors. The company is renowned for its secure and reliable communications equipment, including handheld and vehicle-mounted radios used by police, firefighters, and emergency medical services.
One of its core product lines is its Land Mobile Radio (LMR) systems, which are integral for first responders who rely on real-time, high-performance communication in emergencies. Additionally, Motorola Solutions offers push-to-talk broadband solutions, LTE-based services, and advanced command-and-control center software for incident management and records. The company also offers sophisticated video security systems equipped with analytics capabilities to enhance situational awareness and operational efficiency.
As the demand for seamless, resilient connectivity in high-pressure environments continues to grow, Motorola Solutions remains at the forefront, supplying indispensable communication systems for industries that require reliable, real-time data and voice communication solutions.