NAPCO Security Technologies (NASDAQ:NSSC) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• NAPCO Security Technologies reported quarterly EPS of $0.34, falling $0.04 short of analysts’ consensus estimate of $0.38. The company posted a 21.27% net margin and 31.41% return on equity.
• The company increased its quarterly dividend to $0.17 per share from $0.15, equivalent to an annualized dividend of $0.68 and a 1.7% yield.
• Analysts maintain a generally favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $51.33, although company insiders sold more than 523,000 shares worth approximately $18.3 million over the past three months.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) released its earnings results on Monday. The industrial products company reported $0.34 earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($0.04), Zacks reports. NAPCO Security Technologies had a net margin of 21.27% and a return on equity of 31.41%.

NAPCO Security Technologies Stock Performance

NSSC opened at $39.35 on Monday. The stock's 50 day moving average price is $36.51 and its 200-day moving average price is $39.11. The stock has a market capitalization of $1.41 billion, a PE ratio of 32.52 and a beta of 1.49. NAPCO Security Technologies has a 52-week low of $33.91 and a 52-week high of $51.77.

NAPCO Security Technologies Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, September 11th were issued 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 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, September 11th. NAPCO Security Technologies's dividend payout ratio (DPR) is currently 56.20%.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Benchmark reaffirmed a "buy" rating on shares of NAPCO Security Technologies in a research note on Tuesday, August 25th. Weiss Ratings upgraded shares of NAPCO Security Technologies from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. DA Davidson set a $52.00 price objective on shares of NAPCO Security Technologies in a research report on Tuesday, August 25th. Finally, 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. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $51.33.

Insider Activity at NAPCO Security Technologies

In other NAPCO Security Technologies news, Chairman Richard Soloway sold 379,529 shares of the 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 directly owned 621,958 shares in the company, valued at approximately $21,457,551. This trade represents a 37.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Donna Soloway sold 20,962 shares of the firm's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $34.62, for a total transaction of $725,704.44. Following the sale, the director owned 20,962 shares in the company, valued at $725,704.44. The trade was a 50.00% 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 three months. 2.96% of the stock is owned by insiders.

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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