NAPCO Security Technologies, Inc. (NASDAQ:NSSC) Shareholders to Collect $0.17 Quarterly Dividend

Key Points

• NAPCO Security Technologies declared a $0.17 quarterly dividend, equal to $0.68 annually and a 2.1% yield. The dividend is payable January 4 to shareholders of record December 14.
• The company’s dividend appears supported by earnings, with a current payout ratio of 57.6% and an expected future payout ratio of 36.4% based on projected earnings.
• NSSC shares fell 18.4% to $32.11 after the company reported quarterly EPS of $0.34, below the $0.38 analyst consensus, although revenue increased 1.6% year over year.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) declared a quarterly dividend on Monday, November 2nd. Shareholders of record on Monday, December 14th will be given a dividend of $0.17 per share by the industrial products company on Monday, January 4th. This represents a $0.68 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Monday, December 14th.

NAPCO Security Technologies has a payout ratio of 57.6% meaning its dividend is sufficiently covered by earnings. Analysts expect NAPCO Security Technologies to earn $1.87 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 36.4%.

NAPCO Security Technologies Stock Down 18.4%

NASDAQ NSSC traded down $7.24 during trading on Monday, hitting $32.11. 2,444,801 shares of the stock traded hands, compared to its average volume of 473,964. The company has a market capitalization of $1.15 billion, a P/E ratio of 26.54 and a beta of 1.49. The firm has a 50-day simple moving average of $36.51 and a 200-day simple moving average of $39.11. NAPCO Security Technologies has a 12-month low of $31.00 and a 12-month high of $51.77.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last posted its earnings results on Monday, November 2nd. The industrial products company reported $0.34 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.04). NAPCO Security Technologies had a net margin of 21.27% and a return on equity of 31.41%. During the same period in the prior year, the company earned $0.34 EPS. The company's quarterly revenue was up 1.6% on a year-over-year basis. As a group, research analysts predict that NAPCO Security Technologies will post 1.68 EPS for the current fiscal year.

Insider Activity

In other NAPCO Security Technologies news, Director Donna Soloway sold 28,000 shares of the firm's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $35.98, for a total value of $1,007,440.00. Following the completion of the sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Richard Soloway sold 379,529 shares of the business's stock in a transaction that occurred on 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 transaction, the chairman owned 621,958 shares of the company's stock, valued at $21,457,551. This trade represents a 37.90% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 523,962 shares of company stock worth $18,257,168 over the last quarter. 2.96% of the stock is currently owned by insiders.

Institutional Trading of NAPCO Security Technologies

Several institutional investors and hedge funds have recently modified their holdings of the stock. KBC Group NV purchased a new stake in NAPCO Security Technologies in the first quarter worth about $26,000. Sterling Capital Management LLC raised its holdings in shares of NAPCO Security Technologies by 844.7% in the 3rd quarter. Sterling Capital Management LLC now owns 1,162 shares of the industrial products company's stock valued at $41,000 after purchasing an additional 1,039 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of NAPCO Security Technologies in the 2nd quarter valued at about $46,000. Signaturefd LLC lifted its position in shares of NAPCO Security Technologies by 225.9% in the 3rd quarter. Signaturefd LLC now owns 1,310 shares of the industrial products company's stock worth $47,000 after purchasing an additional 908 shares during the period. Finally, GAMMA Investing LLC lifted its position in shares of NAPCO Security Technologies by 40.3% in the 3rd quarter. GAMMA Investing LLC now owns 1,345 shares of the industrial products company's stock worth $48,000 after purchasing an additional 386 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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