NAPCO Security Technologies (NASDAQ:NSSC) Reaches New 12-Month High After Earnings Beat

Key Points

• NAPCO stock hit a new 52-week high intraday at $48.50 after reporting an earnings beat (EPS $0.39 vs. $0.35 estimate) with revenue up 11.8% year-over-year and strong profitability metrics (ROE 27.45%, net margin 24.70%).
• The shares have a consensus Moderate Buy rating with an average target of $47.83; six analysts rate it Buy and two rate it Hold, including $50 and $49 targets from DA Davidson and Needham respectively.
• CEO Richard Soloway sold 150,000 shares for about $6.41M (reducing his stake by 10.67%), while institutional investors collectively own 85.07% of the company amid several recent new or increased positions.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report)'s share price reached a new 52-week high during trading on Monday following a stronger than expected earnings report. The stock traded as high as $48.50 and last traded at $43.0780, with a volume of 2070 shares traded. The stock had previously closed at $46.72.

The industrial products company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.04. NAPCO Security Technologies had a return on equity of 27.45% and a net margin of 24.70%.During the same quarter in the prior year, the business earned $0.28 EPS. The firm's revenue for the quarter was up 11.8% compared to the same quarter last year.

Analysts Set New Price Targets

A number of brokerages have weighed in on NSSC. DA Davidson reiterated a "buy" rating and issued a $50.00 price target on shares of NAPCO Security Technologies in a research report on Tuesday, February 3rd. Weiss Ratings reissued a "hold (c+)" rating on shares of NAPCO Security Technologies in a report on Monday, April 27th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $49.00 target price (up from $47.00) on shares of NAPCO Security Technologies in a report on Monday, February 2nd. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $47.83.

Insider Activity at NAPCO Security Technologies

In related news, CEO Richard Soloway sold 150,000 shares of the stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $42.74, for a total transaction of $6,411,000.00. Following the sale, the chief executive officer directly owned 1,256,010 shares in the company, valued at $53,681,867.40. This represents a 10.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 5.65% of the stock is owned by insiders.

Hedge Funds Weigh In On NAPCO Security Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in shares of NAPCO Security Technologies during the first quarter worth $347,000. Fifth Third Bancorp bought a new position in shares of NAPCO Security Technologies in the first quarter valued at about $626,000. Oregon Public Employees Retirement Fund acquired a new position in NAPCO Security Technologies during the 1st quarter worth about $323,000. Y Intercept Hong Kong Ltd lifted 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 in the last quarter. Finally, Deprince Race & Zollo Inc. grew its holdings in NAPCO Security Technologies by 64.9% during the 1st quarter. Deprince Race & Zollo Inc. now owns 118,763 shares of the industrial products company's stock worth $4,678,000 after acquiring an additional 46,739 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

NAPCO Security Technologies Trading Down 12.6%

The stock has a market cap of $1.46 billion, a P/E ratio of 30.49 and a beta of 1.55. The business's fifty day simple moving average is $43.25 and its 200 day simple moving average is $42.20.

NAPCO Security Technologies Company Profile

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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