Motorola Solutions (NYSE: MSI) general counsel sells 11.0% of reported stake

What happened

Motorola Solutions, Inc. (NYSE: MSI) general counsel James A. Niewiara sold 2,266 shares on Nov. 6 and Nov. 9, worth about $1.18 million.

He held 18,398 shares after the sales, according to the Form 4 signed Nov. 10, the day after the last sale. The sales equal 11.0% of the 20,664 shares he held before the trade, by OptimistFi's calculation.

The trade came in two pieces. On Nov. 6, Niewiara sold 180.12 shares at $515.16, leaving his son's holding at zero. The filing says the son moved into Niewiara's household after the previous report. Niewiara disclaims ownership of those shares.

On Nov. 9, Niewiara sold 2,086 shares from his direct holding at $522.35. The filing says that holding includes shares bought through the Motorola Solutions Employee Stock Purchase Plan and shares from reinvested dividends.

Key numbers

Metric	Latest	Change	Source
Shares sold	2,266 shares		SEC Form 4
Total sale value	about $1.18 million		SEC Form 4
Price range per share	$515.16 to $522.35		SEC Form 4
Shares held after the sale	18,398 shares		SEC Form 4
Share of pre-trade holding sold	11.0%		Calculated from SEC Form 4

Read more: Motorola Solutions (MSI) company research

Why it matters

OptimistFi has argued that Motorola Solutions turns a large, mission-critical installed base into sticky recurring software and services revenue and high cash margins. The sale leaves that case unchanged.

Most of Niewiara's reported position remains, so the sale trims the stake without ending it. He keeps exposure to the stock through the remaining shares.

Most of the sale came from the direct holding on Nov. 9. The smaller Nov. 6 piece came from shares in his son's name, which Niewiara disclaims. Together the two pieces show a trim of a mixed position, not a single sale from one account.

The 11.0% figure blends two kinds of holdings: shares in his son's name and a direct holding that includes plan shares and reinvested dividends. That mix limits what one sale can show about the company's operating outlook.

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What's next

Motorola Solutions' next quarterly report is the next test of the case. Steady recurring software and services revenue and cash margins would reinforce it. A slip in either would challenge it. An insider sale of this size does not alter that reading.

More from OptimistFi

• MSI stock: research and coverage of Motorola Solutions
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