NAPCO Security Technologies (NASDAQ:NSSC) Hits New 1-Year High After Earnings Beat

Key Points

• NAPCO Security Technologies beat quarterly expectations: EPS came in at $0.50 versus the $0.39 consensus, while revenue reached $55.81 million, up 10.1% year over year and above estimates of $52.53 million.
• The stock hit a new 52-week high and rose 9.5%: Shares reached $51.77 during trading after the earnings announcement, while the latest reported price was $40.50.
• Analyst sentiment remains positive overall: Six analysts rate NSSC a Buy and two rate it Hold, resulting in a “Moderate Buy” consensus and an average price target of $48.67; institutional investors own approximately 85.1% of the stock.

Shares of NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report) reached a new 52-week high during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $51.77 and last traded at $40.5040, with a volume of 604097 shares. The stock had previously closed at $38.09.

The industrial products company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.11. NAPCO Security Technologies had a return on equity of 28.93% and a net margin of 18.70%.The business had revenue of $55.81 million during the quarter, compared to analysts' expectations of $52.53 million. During the same quarter last year, the business posted $0.33 EPS. The business's quarterly revenue was up 10.1% compared to the same quarter last year.

Analysts Set New Price Targets

A number of equities research analysts have commented on NSSC shares. Needham & Company LLC reissued a "buy" rating and issued a $49.00 price objective on shares of NAPCO Security Technologies in a research report on Friday. TD Cowen reissued a "buy" rating and issued a $53.00 target price (up from $50.00) on shares of NAPCO Security Technologies in a report on Tuesday, May 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of NAPCO Security Technologies in a report on Friday, August 7th. DA Davidson reiterated a "buy" rating and issued a $52.00 price objective on shares of NAPCO Security Technologies in a report on Tuesday, May 5th. Finally, Wall Street Zen lowered NAPCO Security Technologies from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $48.67.

Institutional Trading of NAPCO Security Technologies

A number of large investors have recently made changes to their positions in the company. GSA Capital Partners LLP lifted its holdings in shares of NAPCO Security Technologies by 510.3% during the fourth quarter. GSA Capital Partners LLP now owns 33,768 shares of the industrial products company's stock worth $1,408,000 after purchasing an additional 28,235 shares during the period. Seizert Capital Partners LLC acquired a new position in NAPCO Security Technologies in the 4th quarter valued at $1,857,000. Principal Financial Group Inc. raised its position in NAPCO Security Technologies by 239.7% during the 1st quarter. Principal Financial Group Inc. now owns 225,314 shares of the industrial products company's stock worth $8,875,000 after buying an additional 158,984 shares during the last quarter. Y Intercept Hong Kong Ltd raised its position in NAPCO Security Technologies by 113.3% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 59,331 shares of the industrial products company's stock worth $2,337,000 after buying an additional 31,516 shares during the last quarter. Finally, Rice Hall James & Associates LLC acquired a new stake in shares of NAPCO Security Technologies in the 2nd quarter worth $5,833,000. 85.07% of the stock is owned by institutional investors and hedge funds.

NAPCO Security Technologies Trading Up 9.5%

The company has a market cap of $1.49 billion, a price-to-earnings ratio of 40.10 and a beta of 1.45. The company's 50 day moving average price is $37.55 and its 200 day moving average price is $40.05.

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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