NAPCO Security Technologies, Inc. (NASDAQ:NSSC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• NAPCO received a consensus recommendation of Moderate Buy from eight analysts (six buy, two hold) with an average 12‑month price target of $47.83.
• The company beat quarterly expectations—EPS $0.38 vs. $0.33 and revenue $48.17M (up 12.4% year‑over‑year)—and reported a 24.7% net margin and 27.45% return on equity.
• CEO Richard Soloway sold 129,682 shares for about $5.83M, reducing his stake by 10.12%; NAPCO also raised its quarterly dividend to $0.15 (annualized $0.60, 1.4% yield) and institutional investors own roughly 85% of the stock.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eight ratings firms that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $47.8333.

A number of analysts recently issued reports on the stock. DA Davidson restated a "buy" rating and set a $50.00 price objective on shares of NAPCO Security Technologies in a report on Tuesday, February 3rd. Needham & Company LLC restated a "buy" rating and set a $49.00 price objective (up from $47.00) on shares of NAPCO Security Technologies in a report on Monday, February 2nd. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of NAPCO Security Technologies in a report on Wednesday, January 28th.

NAPCO Security Technologies Stock Performance

NASDAQ NSSC opened at $42.75 on Monday. NAPCO Security Technologies has a 52-week low of $20.71 and a 52-week high of $48.12. The company has a 50-day simple moving average of $42.73 and a 200 day simple moving average of $41.97. The company has a market capitalization of $1.52 billion, a PE ratio of 32.14 and a beta of 1.48.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last posted its quarterly earnings data on Monday, February 2nd. The industrial products company reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.05. NAPCO Security Technologies had a net margin of 24.70% and a return on equity of 27.45%. The business had revenue of $48.17 million during the quarter, compared to the consensus estimate of $47.82 million. During the same quarter last year, the company posted $0.28 earnings per share. The firm's quarterly revenue was up 12.4% compared to the same quarter last year. As a group, analysts forecast that NAPCO Security Technologies will post 1.24 EPS for the current fiscal year.

NAPCO Security Technologies Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 3rd. Investors of record on Thursday, March 12th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.4%. This is a boost from NAPCO Security Technologies's previous quarterly dividend of $0.14. The ex-dividend date was Thursday, March 12th. NAPCO Security Technologies's dividend payout ratio is 45.11%.

Insider Transactions at NAPCO Security Technologies

In related news, CEO Richard Soloway sold 129,682 shares of the firm's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $44.99, for a total transaction of $5,834,393.18. Following the completion of the sale, the chief executive officer owned 1,152,276 shares in the company, valued at approximately $51,840,897.24. This trade represents a 10.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 5.65% of the company's stock.

Hedge Funds Weigh In On NAPCO Security Technologies

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of 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 in the last quarter. Fundsmith LLP increased its stake in shares of NAPCO Security Technologies by 86.4% in the third quarter. Fundsmith LLP now owns 1,779,857 shares of the industrial products company's stock worth $76,445,000 after purchasing an additional 824,945 shares in the last quarter. Janus Henderson Group PLC increased its stake in shares of NAPCO Security Technologies by 3.0% in the fourth quarter. Janus Henderson Group PLC now owns 1,569,363 shares of the industrial products company's stock worth $65,457,000 after purchasing an additional 45,093 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of NAPCO Security Technologies by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,028,863 shares of the industrial products company's stock worth $42,910,000 after purchasing an additional 4,324 shares in the last quarter. Finally, State Street Corp increased its stake in shares of NAPCO Security Technologies by 14.4% in the fourth quarter. State Street Corp now owns 896,315 shares of the industrial products company's stock worth $37,484,000 after purchasing an additional 112,495 shares in the last quarter. Hedge funds and other 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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