NAPCO Security Technologies, Inc. (NASDAQ:NSSC) Stock Has Average Price Target of $51.33

Key Points

• Analyst sentiment is moderately positive: Six brokerages give NAPCO Security Technologies a consensus “Moderate Buy” rating, with an average 12-month price target of $51.33 versus the reported share price of $39.98.
• Quarterly results exceeded expectations: The company reported $0.50 in earnings per share and $55.81 million in revenue, beating estimates while revenue increased 10.1% year over year.
• Dividend increased, but insider selling is notable: NAPCO raised its quarterly dividend to $0.17 per share, while insiders sold 523,962 shares worth approximately $18.3 million over the prior 90 days.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) has earned a consensus rating of "Moderate Buy" from the six brokerages that are covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $51.33.

Several equities analysts have recently commented on the company. Benchmark reaffirmed a "buy" rating on shares of NAPCO Security Technologies in a report on Tuesday, August 25th. Needham & Company LLC reissued a "buy" rating and issued a $49.00 price target on shares of NAPCO Security Technologies in a report on Friday, August 21st. Wall Street Zen lowered NAPCO Security Technologies from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. DA Davidson set a $52.00 price objective on NAPCO Security Technologies in a research report on Tuesday, August 25th. Finally, Weiss Ratings upgraded NAPCO Security Technologies from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th.

NAPCO Security Technologies Stock Performance

Shares of NASDAQ:NSSC opened at $39.98 on Friday. The company's fifty day moving average is $36.48 and its two-hundred day moving average is $39.13. NAPCO Security Technologies has a 1-year low of $33.91 and a 1-year high of $51.77. The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of 33.04 and a beta of 1.51.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last announced its quarterly earnings data 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 net margin of 21.27% and a return on equity of 31.41%. The business had revenue of $55.81 million during the quarter, compared to the consensus estimate of $52.51 million. During the same quarter in the prior year, the firm earned $0.33 EPS. The company's revenue for the quarter was up 10.1% compared to the same quarter last year. Sell-side analysts expect that NAPCO Security Technologies will post 1.68 EPS for the current fiscal year.

NAPCO Security Technologies Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, September 11th were given a dividend of $0.17 per share. This is an increase from NAPCO Security Technologies's previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Friday, September 11th. NAPCO Security Technologies's payout ratio is currently 56.20%.

Insider Activity

In related news, Chairman Richard Soloway sold 379,529 shares of NAPCO Security Technologies 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 sale, the chairman directly owned 621,958 shares in the company, valued at $21,457,551. This trade represents a 37.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Donna Soloway sold 28,000 shares of the business's 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 transaction, the director directly owned 20,962 shares of the company's stock, valued at $754,212.76. The trade was a 57.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 523,962 shares of company stock valued at $18,257,168 in the last 90 days. Insiders own 5.65% of the company's stock.

Institutional Trading of NAPCO Security Technologies

Several hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in NAPCO Security Technologies in the 2nd quarter worth about $213,928,000. Copeland Capital Management LLC lifted its stake in NAPCO Security Technologies by 3.2% during the third quarter. Copeland Capital Management LLC now owns 2,081,286 shares of the industrial products company's stock valued at $74,135,000 after buying an additional 64,413 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of NAPCO Security Technologies in the second quarter worth about $63,855,000. Wellington Management Group LLP boosted its holdings in shares of NAPCO Security Technologies by 18.6% in the second quarter. Wellington Management Group LLP now owns 1,102,280 shares of the industrial products company's stock worth $41,865,000 after buying an additional 172,681 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of NAPCO Security Technologies by 4.7% in the first quarter. Dimensional Fund Advisors LP now owns 702,852 shares of the industrial products company's stock worth $27,683,000 after buying an additional 31,609 shares during the period. Institutional investors own 85.07% of the company's stock.

NAPCO Security Technologies Company Profile

NAPCO Security Technologies, Inc develops, manufactures and sells electronic security products and solutions for commercial, institutional, industrial and residential applications. Its offerings include intrusion alarm systems, access control systems, fire alarm products, locking systems and related communications technologies.

The company markets products under brands that include NAPCO, StarLink, Alarm Lock, Continental Instruments and Firewolf. Its solutions are designed to support security dealers, alarm monitoring providers, systems integrators and other professional-channel customers, including applications in schools, healthcare facilities, businesses and government buildings.

Founded in 1969, NAPCO is headquartered in Amityville, New York.

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