NAPCO Security Technologies, Inc. (NASDAQ:NSSC) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts remain moderately bullish: Six of eight analysts rate NAPCO Security Technologies a buy and two rate it a hold, with an average 12-month price target of $50.40 versus the stock’s $35.91 opening price.
• Quarterly results exceeded expectations: NAPCO reported $0.50 in earnings per share and $55.81 million in revenue, beating estimates of $0.39 EPS and $52.51 million revenue; revenue increased 10.1% year over year.
• The company raised its dividend, but insiders sold shares: The quarterly dividend increased to $0.17, or $0.68 annually, while insiders sold 523,962 shares worth approximately $18.3 million during the last quarter.

Shares of NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the eight analysts that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $50.40.

Several research analysts have issued reports on the stock. Needham & Company LLC reiterated a "buy" rating and set a $49.00 target price on shares of NAPCO Security Technologies in a report on Friday, August 21st. Weiss Ratings reissued a "hold (c)" rating on shares of NAPCO Security Technologies in a research note on Friday, August 7th. DA Davidson set a $52.00 target price on NAPCO Security Technologies in a research report on Tuesday, August 25th. Benchmark reiterated a "buy" rating on shares of NAPCO Security Technologies in a report on Tuesday, August 25th. Finally, Wall Street Zen lowered NAPCO Security Technologies from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th.

NAPCO Security Technologies Stock Down 3.2%

Shares of NASDAQ:NSSC opened at $35.91 on Thursday. The business's 50 day moving average is $37.26 and its 200 day moving average is $39.38. The stock has a market cap of $1.28 billion, a P/E ratio of 29.68 and a beta of 1.43. NAPCO Security Technologies has a 52-week low of $33.91 and a 52-week high of $51.77.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last issued its earnings results on Monday, August 24th. The industrial products company reported $0.50 earnings per share for the quarter, beating analysts' consensus estimates of $0.39 by $0.11. NAPCO Security Technologies had a return on equity of 31.41% and a net margin of 21.27%.The business had revenue of $55.81 million during the quarter, compared to analyst estimates of $52.51 million. During the same period in the previous year, the company posted $0.33 EPS. NAPCO Security Technologies's revenue was up 10.1% on a year-over-year basis. On average, sell-side analysts anticipate that NAPCO Security Technologies will post 1.66 EPS for the current fiscal year.

NAPCO Security Technologies Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 11th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.9%. This is a boost from NAPCO Security Technologies's previous quarterly dividend of $0.15. The ex-dividend date is Friday, September 11th. NAPCO Security Technologies's payout ratio is presently 49.59%.

Insider Activity

In other NAPCO Security Technologies news, Chairman Richard Soloway sold 379,529 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $34.50, for a total value of $13,093,750.50. Following the completion of the transaction, the chairman directly owned 621,958 shares in the company, valued at approximately $21,457,551. The trade was a 37.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Donna Soloway sold 28,000 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $35.98, for a total transaction of $1,007,440.00. Following the sale, the director directly owned 20,962 shares of the company's stock, valued at approximately $754,212.76. The trade was a 57.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 523,962 shares of company stock worth $18,257,168 in the last quarter. 5.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of NSSC. BlackRock Inc. acquired a new stake in NAPCO Security Technologies in the second quarter valued at approximately $213,928,000. Vanguard Group Inc. grew its holdings in NAPCO Security Technologies by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 2,882,063 shares of the industrial products company's stock worth $120,182,000 after purchasing an additional 31,644 shares during the last quarter. Copeland Capital Management LLC increased its position in shares of NAPCO Security Technologies by 41.4% during the first quarter. Copeland Capital Management LLC now owns 2,009,089 shares of the industrial products company's stock worth $79,138,000 after purchasing an additional 588,297 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of NAPCO Security Technologies during the second quarter worth $63,855,000. Finally, Janus Henderson Group PLC lifted its holdings in shares of NAPCO Security Technologies by 3.0% during the 4th quarter. Janus Henderson Group PLC now owns 1,569,363 shares of the industrial products company's stock valued at $65,457,000 after purchasing an additional 45,093 shares during the last quarter. Institutional investors own 85.07% of the company's stock.

About NAPCO Security Technologies

NAPCO Security Technologies, Inc NASDAQ: NSSC is a designer and manufacturer of electronic security solutions for commercial and residential applications. The company's product portfolio spans intrusion and fire alarm control panels, alarm communicators, access control locks and readers, as well as a broad range of peripheral modules and integrated security accessories. NAPCO's offerings are engineered to deliver scalable, networked security systems suitable for new installations and retrofit projects alike.

Key product lines include hybrid alarm control panels that support both wired and wireless peripherals, cellular and IP alarm communicators for reliable central station reporting, and the acclaimed “Alarm Lock” series of standalone and networked electronic door locks.

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