The fact that multiple Motorola Solutions, Inc. (NYSE:MSI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Motorola Solutions

The Last 12 Months Of Insider Transactions At Motorola Solutions

Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Strategy & Ventures, Rajan Naik, for US$2.0m worth of shares, at about US$374 per share. That means that an insider was selling shares at slightly below the current price (US$449). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 37% of Rajan Naik's holding.

Insiders in Motorola Solutions didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Motorola Solutions Have Sold Stock Recently

The last quarter saw substantial insider selling of Motorola Solutions shares. In total, insiders dumped US$292k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Motorola Solutions insiders own 0.3% of the company, currently worth about US$257m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.