Insider Selling

Motorola CEO files a Form 144 and sells shares the same day

Dating back to 1930, Motorola Solutions Inc (MSI: US) has worked in the communications and technology industry with a rich history of many first time projects.

Other US companies, that like Motorola dabble in telecommunications, have had a lukewarm year so far. Motorola stock so far has declined by almost 19.89%. With a current M Cap of $35.8 billion, a top-insider at Motorola filed form 144s, for shares worth nearly $5 million. 

Form 144 and sales out the same day

Chairman and CEO at Motorola, Gregory Q. Brown, filed two forms, each for 12,500 shares on June 07, 2022. Both forms were filed for two separate trusts: ‘Troy H. Brown 2020 NonExempt Gift Trust’ and ‘Megan A. Czerwinski 2020 Non-Exempt Gift Trust’.

On the same day, 2iQ analysts data found that Brown already sold the MSI shares. As of yet, he has sold 25,000 shares, which was the total number of shares listed in his two forms. Since the trades, MSI’s stock price has taken another dive. The stock, which closed on $221.97 on the day of Brown’s sales, closed at $214.25 two days later.

Brown has served as CEO for nearly 14 years and also has experience on the boards of multiple other companies, including Xerox and Cisco Systems.

Motorola progresses operations

The company has been recently making a number of acquisitions lately

On May 12, the company announced that it acquired an Italian video security solutions company, Videotec. While details of the deal were revealed, Greg Brown noted, “With Videotec’s specialized suite of cameras, we’re extending the breadth of our portfolio to help secure and support the demanding environments of these complex, essential industries.”

The same day, Motorola made public its earnings for the first quarter of 2022: the communications company saw a 7% rise year on year in quarterly revenue

Prior to the Videotec deal, Motorola had also made several other acquisitions in the first quarter alone. These included a purchase of Calipsa Inc, an advanced video analytics platform based in the United Kingdom. This company focuses on cloud based technology which adds AI to IP-based cameras albeit without the need for more hardware. Another company in the ‘acquired’ list was TETRA Ireland Communications Ltd, which focuses on Land Mobile Radio (LMR) communications. 

Considering the progress the company is making in operations and deals, it could be said the Motorola solutions stock is undervalued at present. But nothing can be said regarding its CEO and Chairman’s sales, considering there can be multiple reasons why Insiders would sell stock. 

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