NAPCO Security Technologies, Inc. (NASDAQ:NSSC) Stock Has Consensus Target Price of $50.40 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Six of eight analysts rate NAPCO Security Technologies a “buy,” while two recommend holding the stock. The consensus 12-month price target is $50.40, above its reported $36.17 share price.
• Recent results exceeded expectations: NAPCO reported quarterly EPS of $0.50 versus the $0.39 consensus estimate, while revenue rose 10.1% year over year to $55.81 million. The company also raised its quarterly dividend to $0.17 per share, representing a 1.9% yield.
• Insiders have been selling shares: Company directors and executives sold 523,962 shares worth approximately $18.3 million over the past 90 days, although institutional investors still own about 85.1% of the stock.

Shares of NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eight analysts that are currently covering the firm, 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 12-month price target among analysts that have issued a report on the stock in the last year is $50.40.

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

NAPCO Security Technologies Price Performance

Shares of NASDAQ:NSSC opened at $36.17 on Monday. NAPCO Security Technologies has a 52-week low of $33.91 and a 52-week high of $51.77. The stock's fifty day simple moving average is $37.00 and its 200-day simple moving average is $38.39. The company has a market capitalization of $1.29 billion, a P/E ratio of 29.89 and a beta of 1.51.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last posted its quarterly earnings data on Monday, August 24th. The industrial products company reported $0.50 EPS 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 for the quarter, compared to analyst estimates of $52.51 million. During the same quarter last year, the company earned $0.33 earnings per share. The business's revenue for the quarter was up 10.1% compared to the same quarter last year. On average, sell-side analysts anticipate that NAPCO Security Technologies will post 1.66 earnings per share for the current year.

NAPCO Security Technologies Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Friday, September 11th were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.9%. This is a positive change from NAPCO Security Technologies's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Friday, September 11th. NAPCO Security Technologies's dividend payout ratio (DPR) is currently 56.20%.

Insider Buying and Selling

In other NAPCO Security Technologies news, Director Donna Soloway sold 28,000 shares of the stock in a transaction that occurred on 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 owned 20,962 shares of the company's stock, valued at $754,212.76. This trade represents a 57.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman Richard Soloway sold 379,529 shares of NAPCO Security Technologies stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $34.50, for a total transaction of $13,093,750.50. Following the completion of the transaction, the chairman owned 621,958 shares in the company, valued at approximately $21,457,551. This trade represents a 37.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 523,962 shares of company stock worth $18,257,168. 5.65% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NSSC. KBC Group NV acquired a new position in shares of NAPCO Security Technologies during the 1st quarter valued at $26,000. Blue Trust Inc. purchased a new position in NAPCO Security Technologies in the first quarter valued at about $44,000. Integrated Wealth Concepts LLC purchased a new stake in shares of NAPCO Security Technologies in the second quarter worth about $46,000. Global Retirement Partners LLC purchased a new stake in shares of NAPCO Security Technologies in the second quarter worth about $125,000. Finally, Maryland State Retirement & Pension System acquired a new stake in shares of NAPCO Security Technologies in the first quarter valued at about $208,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

About NAPCO Security Technologies

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

The company markets products under brands that include NAPCO, Gemini, StarLink, Alarm Lock, Marks and Continental Instruments. Its portfolio also includes wireless and cellular alarm communicators, cloud-based security and access management solutions, video and surveillance-related products, and school security technologies.

Founded in 1969 and headquartered in Amityville, New York, NAPCO serves customers through security dealers, distributors and other channels in the United States and international markets.

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