Motorola Solutions (MSI) Stock Is Down Today After Failing To Find a Buyer

NEW YORK (TheStreet) -- Shares of Motorola Solutions were falling 5.9% to $62.71 on heavy volume Thursday following reports that the communication equipment company failed to find a buyer after searching for months. Motorola Solutions failed to find a buyer after looking to private equity firms and larger industrial companies, according to Bloomberg. The communication equipment maker was reportedly too large for a single buyout fund according to the news site. The company reportedly also approached potential buyers including Honeywell and Tyco International , but wasn't able to attract enough interest. Some potential buyers were concerned that Motorola Solutions' technology could become obsolete too quickly, according to Bloomberg. About 2.7 million shares of Motorola Solutions were traded by 2:44 p.m. Thursday, above the company's average trading volume of about 1.8 million shares a day. TheStreet Ratings team rates MOTOROLA SOLUTIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate MOTOROLA SOLUTIONS INC (MSI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: MSI's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for MOTOROLA SOLUTIONS INC is rather high; currently it is at 52.22%. Regardless of MSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MSI's net profit margin of 11.02% is significantly lower than the industry average. In its most recent trading session, MSI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 41.2% when compared to the same quarter one year ago, falling from $342.00 million to $201.00 million. Net operating cash flow has significantly decreased to -$666.00 million or 189.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: MSI Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015

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