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Is MSI Trading at a Discount to Analysts’ Median Target Estimate?

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MSI stock has fallen ~11% in 2018

Motorola Solutions (MSI) has returned 28% in the last 12 months, 4.9% in the last month, and -1.8% in the last five days. MSI stock rose 23% in 2016 and over 11% in 2017. Since the start of 2018, it’s risen almost 21%. MSI has outperformed the S&P 500 Index (SPY) and the PowerShares QQQ Trust, Series 1 ETF (QQQ), which have generated returns of 1.2% and 1.8%, respectively, so far in 2018.

Peers Cisco (CSCO), Ericsson (ERIC), Harris Corporation (HRS), and Nokia (NOK) have returned 31%, 23%, 45%, and 9%, respectively, in the last 12 months.

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Analysts’ recommendations and price targets

Of the 16 analysts tracking MSI, 11 have recommended “buys,” four have recommended “holds,” and one has recommended a “sell” on the stock. Analysts’ 12-month average price target for MSI is $115.23, and their median estimate is $120. MSI is trading at a discount of 10% to analysts’ median estimate.

Moving averages

On April 25, MSI closed the trading day at $109.42. Based on that price, the stock is trading at the following levels:

  • 8.2% below its 100-day moving average of $101.13
  • 2% above its 50-day moving average of $107.26
  • 1.7% above its 20-day moving average of $107.63

MSI is trading 37% above its 52-week low of $79.63 and 2% below its 52-week high of $111.91.

Relative strength index

MSI’s 14-day MACD (moving average convergence divergence) is 0.93. A stock’s MACD marks the difference between its short- and long-term moving averages. MSI’s positive MACD score indicates an upward trading trend.

MSI has a 14-day RSI (relative strength index) score of 60, which shows that the stock is trading close to overbought territory. An RSI score of above 70 indicates a stock has been overbought, while an RSI score of below 30 suggests that a stock has been oversold.

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