In the fourth quarter, the Teacher Retirement System of Texas reduced its holdings in Motorola Solutions, Inc. (NYSE: MSI) by 4.9%, according to the latest 13F filing with the SEC. After selling 7,462 shares during the period, the Texas-based fund now holds 145,386 shares of the communications equipment giant, which were valued at approximately $67.2 million. This reduction means the Teacher Retirement System now owns about 0.09% of Motorola Solutions' total shares.
Meanwhile, other institutional investors have been active in adjusting their stakes. State Street Corp, for instance, increased its holdings by 2.7% in the third quarter, acquiring an additional 198,183 shares. This brought its total to 7,454,643 shares, valued at $3.36 billion. Similarly, Geode Capital Management LLC raised its stake by 2.4%, adding 89,320 shares to reach a total of 3,736,045 shares worth $1.68 billion.
In contrast, Raymond James Financial Inc. entered a new position in Motorola Solutions in the fourth quarter, investing approximately $1.53 billion. Bank of New York Mellon Corp also grew its position by 8.5%, acquiring an additional 100,454 shares, bringing its total to 1,287,296 shares valued at $595 million. Finally, Swedbank AB increased its stake by 0.3%, adding 3,040 shares to reach 1,026,996 shares valued at $474.7 million. Together, institutional investors and hedge funds hold 84.17% of Motorola Solutions' stock.
Shares of Motorola Solutions saw a modest increase on Friday, with the stock rising $1.11 to $423.39. Trading volume was higher than usual, with 1,140,543 shares changing hands, compared to the average volume of 691,880. The company has a market capitalization of $70.68 billion, a P/E ratio of 45.92, and a P/E/G ratio of 3.82. The stock has traded between a 52-week low of $332.98 and a high of $507.82. Its current 50-day moving average stands at $446.45, and the 200-day moving average is $459.51.
On February 13, Motorola Solutions reported earnings of $3.75 per share for the quarter, falling short of the consensus estimate of $3.85 by 10 cents. The company had a net margin of 14.58% and a remarkable return on equity of 197.59%. Its quarterly revenue totaled $3.01 billion, slightly exceeding analysts' expectations of $3 billion. Looking ahead, analysts predict that Motorola Solutions will post earnings of $13.55 per share for the year.
The company also declared a quarterly dividend of $1.09 per share, which will be paid on April 15. Shareholders who are on record by March 14 will receive the dividend, which represents an annualized payout of $4.36 and a yield of 1.03%. The dividend payout ratio stands at 47.29%.
Several analysts recently updated their outlook on Motorola Solutions' stock. Morgan Stanley raised its target price from $495 to $505, maintaining an "equal weight" rating. On February 18, StockNews.com upgraded the stock from "hold" to "buy." Deutsche Bank increased its price target from $440 to $530, while Barclays reduced its target slightly from $529 to $527, keeping an "overweight" rating. Currently, one analyst rates the stock as a "hold," while eight analysts have issued "buy" ratings. The consensus rating is "Moderate Buy," with an average price target of $505.88.
Motorola Solutions provides critical public safety and enterprise security solutions worldwide, including in the United States, the United Kingdom, and Canada. It operates through two primary segments: Products and Systems Integration, and Software and Services. The company offers a broad range of products such as infrastructure, devices, accessories, and video security systems, alongside integration and system implementation services. These offerings cater to government, public safety, and commercial clients managing private communications networks and video security.