Yesterday Motorola Solutions, Inc. announced that it will increase its stock repurchase program from $2 billion worth of stock to $3 billion. This initiative began in July, 2011 and since then $1.1 billion of stock had been repurchased by December 31, 2011. There remains $1.9 billion of stock repurchase from the 2012 repurchase budget.
The stock will be repurchased from cash and cash from existing operations. This is sign of financial health that the company is able to invest its money in its own stock. It also shows confidence that the stock price will rise. The company’s operating margin was 12.25% and its profit margin was 14.12% which are good figures. In addition, Motorola declared a 22 cent dividend on January 27.
Motorola’s stock has been rising over the past two years, but since October 2011 the stock seems to have leveled off. The market may have been neutral on Motorola but the stock shows no sign of a downturn. In fact, as of yesterday’s stock repurchase announcement, the stock research firm, Argus, has raised its rating on Motorola’s stock from hold to buy.
Some of the key managers and directors at Motorola Solutions are: Vincent J. Intrieri, Judy C. Lewent, David W. Dorman, Eduardo Conrado and Kenneth C. Dahlberg.
Disclaimer: The information in this article is insufficient for decision making. All investment decisions should only be made after a thorough analysis of the stock.