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Is MSI Trading at a Discount to Price Target Estimates in January?

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MSI’s stock returns

US-based (SPY) Motorola Solutions (MSI) stock has generated returns of 19.0% in the trailing-12-month period, 9.2% in the trailing-one-month period, and 1.2% in the trailing-five-day period.

MSI’s stock price rose 23.0% in 2016, and it rose 11.5% in 2017. Its stock has risen 10.0% since the start of 2018. Among its peers, Cisco Systems (CSCO), Nokia (NOK), and Harris Corporation (HRS) generated returns of 31.0%, -0.3%, and 40.0%, respectively, in 2017.

On January 28, 2018, MSI closed trading at $99.00, which is 29.0% above its 52-week low of $76.92 and at its 52-week high of $99.00.

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Analysts’ recommendations

Of the 14 analysts tracking Motorola Solutions (MSI), ten gave the stock a “buy” recommendation, three analysts recommended a “hold,” and one analyst recommended a “sell” on the stock.

The analysts’ price target for MSI stock is $97.38 with a median target estimate of $102.00. MSI is trading at a discount of 3.0% to the median analyst estimate.

Moving averages

Motorola Solutions closed the trading day on January 28, 2018, at $99.00. Based on that price, the stock is trading as follows:

  • 9.2% above its 100-day moving average of $90.63
  • 6.3% above its 50-day moving average of $93.14
  • 5.0% above its 20-day moving average of $94.32

RSI and MACD

MSI’s 14-day MACD (moving average convergence divergence) is ~1.2. A stock’s MACD is the difference between its short-term and long-term moving averages. Because MSI’s MACD is positive, it indicates an upward trading pattern.

MSI also has a 14-day RSI (relative strength index) score of 76, which shows that the stock is trading well into oversold territory. If an RSI is above 70, it indicates that a stock has been overbought. An RSI figure below 30 suggests that a stock has been oversold.

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