Headquartered in Chicago, Illinois, US, Motorola Solutions, Inc. is a leading data communications and telecommunications equipment provider that serves more than 100,000 public safety and commercial clients in over 100 countries worldwide. The company is the legal successor of Motorola Inc., the old company founded way back in 1928 and credited with numerous milestones, such as inventing the first car radios, walkie-talkies, pagers, cell phones, as well as the first communication equipment on the Moon. Motorola Solutions was founded in 2011 following the spinning off of the company’s mobile division into Motorola Mobility, a segment that waned off in the market despite the company’s crucial role in pioneering the entire industry.
The Motorola product portfolio includes mission-critical communications equipment, command centre software, video security devices and infrastructure; as well as related managed and support services. The company offers its products and services through 2 business segments: Products and Systems Integration, as well as Services and Software. Motorola customers include government agencies, municipalities, emergency services, and commercial communication networks.
Motorola has been a model innovation company throughout its history, always in the frontline of introducing new and improved communication equipment that promotes community safety as well as helps commercial businesses become more productive and secure. Nonetheless, the company has also pursued growth by being an active player in the mergers and acquisitions market. One of its most significant buys is the 2015 acquisition of Airwave Solutions for $1.3 billion. Its biggest divestment to date is the sale of its Enterprise Division for $3.45 billion to Zebra Technologies in October 2014.
Motorola Solutions, Inc. is listed on the NYSE, where it trades under the ticker symbol MSI. The stock is categorised in the Technology sector, under the Communication Equipment industry.
Motorola Stock History
Motorola Solutions, Inc. has never implemented any stock split since the 2011 spin-off of Motorola Mobility. However, the MSI stock has been an impressive performer, unlocking its potential since it was separated from the loss-making division. The MSI stock traded at circa $40 after the company’s reorganisation in 2011. The stock then steadily edged higher, and by January 2018, it managed to break above the psychological $100-price mark. It then increased its upward momentum, and by February 2020, it settled above $180. The effects of the 2020 coronavirus pandemic then dampened the demand for its equipment, and the stock responded with a sharp dip to circa $130 by May 2020. The dip did not last long, as the stock quickly turned around and embarked on a sharp rally that saw it print its all-time high, at the time of writing, above $246 by September 2021.
Motorola has been a generous and consistent dividend payer, making the MSI stock very attractive to its investors. Since 2011, the company has consistently increased its dividend payouts from $0.18 to the current $2.76 per share. During the same period, the dividend yield has risen from 0.53% to the current 1.14%.
How to Trade Motorola Stock
Here are some of the factors to consider when trading MSI stock:
- Regulatory and Legislative issues
By counting government agencies as its most important customers, this might imply that Motorola is immune to regulatory risks, yet the company still requires legislative intervention in areas such as patent protection so as to defend its dominance in the market. The company also has to deal with diverse jurisdictional laws and regulations pertaining to privacy, data protection, and artificial intelligence. Any significant changes in these areas could have a heavy impact on the price of the MSI stock.
- New Product Rollout
Throughout its entire history, Motorola’s success and failure have been defined by the introduction of new products in the market. Its pioneering, diverse portfolio of communication equipment ensured its success in the aftermath of World War II. Still, the introduction of iPhones by Apple Inc. triggered the failure of its famous mobile phones division. As a perpetually innovative company, the rollout of new products in its different markets will always determine the success or failure of Motorola Solutions, Inc., and the performance of MSI stock.
Motorola faces stiff competition from rivals such as Arista Networks, F5 Networks, Viasat, and Extreme Networks. These companies compete for lucrative government contracts and the business of reputable commercial entities. This ensures that the industry is fiercely competitive for Motorola. Additionally, the stable returns in Motorola’s field also attract competition from well-financed and high-end tech players such as Apple, Redmi, and even Google.
- Periodic Earnings Reports
Motorola’s fiscal year runs from January 1st to December 31st, and the company releases periodic earnings reports to keep investors updated with its business health and performance. In particular, Motorola investors watch out for metrics such as debt levels and cash allocated for business-determining dynamics such as Research & Development. Positive and strong numbers can inspire higher stock prices, whereas negative and weak figures can trigger lower prices.
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