Motorola Solutions’s Underperform Rating Reaffirmed at Zacks (MSI)
Motorola Solutions (NYSE:MSI)‘s stock had its “underperform” rating reaffirmed by Zacks in a research note issued on Friday. They currently have a $54.00 target price on the stock. Zacks‘s price objective would suggest a potential downside of 9.04% from the stock’s previous close.
Zacks’ analyst wrote, “Motorola Solutions posted dismal second-quarter 2014 financial results with both the top and the bottom line missing the Zacks Consensus Estimate. Also, the company continues to face a downtrend in demand across different geographic regions. Moreover, lower contract wins and sluggish economic trends have forced the company to slash its outlook and divest its Enterprise Business segment. Further, declining profit has compelled Motorola Solutions to raise its cost-cutting target. Moreover, phasing out of the iDEN network will act as a headwind for the company going ahead. In our view, Motorola Solutions is currently overvalued as it is trading at the high end of the 52-week price range. We do not see any immediate growth catalyst for the company. We thus, maintain our long-term Underperform recommendation on Motorola Solutions.”
Shares of Motorola Solutions (NYSE:MSI) traded up 0.02% on Friday, hitting $59.38. The stock had a trading volume of 1,270,815 shares. Motorola Solutions has a 1-year low of $55.80 and a 1-year high of $68.33. The stock has a 50-day moving average of $63.30 and a 200-day moving average of $65.11. The company has a market cap of $14.897 billion and a P/E ratio of 9.67.
Motorola Solutions (NYSE:MSI) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.63 by $0.16. The company had revenue of $1.39 million for the quarter, compared to the consensus estimate of $1.96 million. During the same quarter in the previous year, the company posted $1.12 earnings per share. The company’s revenue for the quarter was down 6.9% on a year-over-year basis. Analysts expect that Motorola Solutions will post $2.66 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, October 15th. Investors of record on Monday, September 15th will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 2.29%. The ex-dividend date is Thursday, September 11th. This is an increase from Motorola Solutions’s previous quarterly dividend of $0.31.
MSI has been the subject of a number of other recent research reports. Analysts at MKM Partners reiterated a “neutral” rating on shares of Motorola Solutions in a research note on Wednesday, August 6th. They now have a $64.00 price target on the stock, down previously from $66.00. Separately, analysts at Credit Suisse cut their price target on shares of Motorola Solutions from $70.00 to $65.00 in a research note on Wednesday, August 6th. They now have an “outperform” rating on the stock. Finally, analysts at Tigress Financial downgraded shares of Motorola Solutions from a “buy” rating to a “neutral” rating in a research note on Friday, July 11th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average target price of $63.09.
Motorola Solutions, Inc (NYSE:MSI) provides communication infrastructure, devices, software and services.
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