Motorola Solutions Stock: Who Owns The Business?

To understand the true control of Motorola Solutions, Inc. (NYSE:MSI), it's crucial to examine the ownership structure. Institutions hold the majority of shares, roughly 87%, making them the most influential group in the company's direction. This means they stand to gain the most from a stock price increase and lose the most if it declines.

Since institutions wield significant capital, their market moves are closely watched by retail and individual investors. A substantial institutional investment often signals strong confidence in the company's future.

Institutional Ownership: A Closer Look

Motorola Solutions does attract institutional investors, suggesting credibility among professional investors. However, relying solely on this fact is unwise. Institutions, like any investor, can make mistakes. If two large institutions simultaneously attempt to sell a stock, a sharp price drop is not uncommon. Therefore, it's essential to examine Motorola Solutions' past earnings trajectory. Keep in mind that other factors are also at play.

Institutional Ownership Structure

Many institutions benchmark their performance against indices representing the local market. Consequently, they prioritize companies included in major indices.

The Vanguard Group, Inc. emerges as Motorola Solutions' largest shareholder, controlling 12% of outstanding shares. The second and third largest shareholders own approximately 8.1% and 6.5% of the stock, respectively. The top 20 shareholders collectively control 51% of ownership, indicating no single entity holds majority control.

Insider Ownership: A Sign of Alignment or Power?

While the definition of an insider can be subjective, board members are generally considered insiders. They oversee the business, but the CEO ultimately reports to the board, even if they are a member.

Positive insider ownership signals leadership aligning their interests with those of true owners. However, high insider ownership can also concentrate power within a small group, potentially leading to negative consequences.

Motorola Solutions Insider Ownership

Our recent data indicates that insiders own less than 1% of Motorola Solutions. Given the company's size, this is unsurprising. Despite their small holding, board members collectively own US$252 million worth of shares (at current prices). In such situations, observing insider buying or selling activity can be insightful.

Public Ownership: A Voice in the Company

The general public, including retail investors, owns a 12% stake in the company, making them a significant force that cannot be easily disregarded. While this ownership may not be enough to dictate policy decisions, it can still exert a collective influence on company policies.

Conclusion: A Multifaceted Ownership Landscape

Analyzing ownership groups offers valuable insights into a company's potential performance. However, it's crucial to remember that other factors, such as warning signs, should be considered. Examining analyst sentiments and forecasts can also provide additional perspective.

Ultimately, the future holds the most importance.

Disclaimer: This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sign in to access your portfolio