NAPCO Security Technologies (NASDAQ:NSSC) Shares Down 7.5% - Should You Sell?

Key Points

• NAPCO Security Technologies shares fell 7.5% on Thursday, dropping as low as $34.20 before last trading around $35.23, well below the prior close of $38.08.
• Despite the pullback, analysts remain generally positive: six rate the stock a Buy, two a Hold, with a consensus Moderate Buy and an average price target of $48.67.
• The company recently beat earnings estimates with $0.39 EPS and 11.8% revenue growth year over year, and it also paid a quarterly dividend of $0.15, equal to a 1.6% annualized yield.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report)'s stock price fell 7.5% during mid-day trading on Thursday . The stock traded as low as $34.20 and last traded at $35.2260. 86,949 shares traded hands during trading, a decline of 83% from the average session volume of 525,184 shares. The stock had previously closed at $38.08.

Analysts Set New Price Targets

A number of brokerages have weighed in on NSSC. Weiss Ratings lowered NAPCO Security Technologies from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 11th. TD Cowen reiterated a "buy" rating and set a $53.00 price target (up from $50.00) on shares of NAPCO Security Technologies in a research report on Tuesday, May 5th. Wall Street Zen lowered NAPCO Security Technologies from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Finally, DA Davidson restated a "buy" rating and issued a $52.00 price objective on shares of NAPCO Security Technologies in a research report on Tuesday, May 5th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $48.67.

NAPCO Security Technologies Price Performance

The company has a market capitalization of $1.31 billion, a P/E ratio of 35.26 and a beta of 1.44. The company has a 50 day moving average of $37.91 and a 200-day moving average of $40.73.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last posted its earnings results on Monday, May 4th. The industrial products company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.35 by $0.04. NAPCO Security Technologies had a net margin of 18.70% and a return on equity of 28.93%. The firm had revenue of $49.17 million during the quarter, compared to analysts' expectations of $49.26 million. During the same period last year, the company posted $0.28 EPS. The company's quarterly revenue was up 11.8% compared to the same quarter last year. Research analysts predict that NAPCO Security Technologies, Inc. will post 1.48 EPS for the current fiscal year.

NAPCO Security Technologies Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 3rd. Stockholders of record on Friday, June 12th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Friday, June 12th. NAPCO Security Technologies's dividend payout ratio is currently 57.69%.

Hedge Funds Weigh In On NAPCO Security Technologies

Hedge funds have recently bought and sold shares of the business. GSA Capital Partners LLP grew its holdings in shares of NAPCO Security Technologies by 510.3% in the fourth quarter. GSA Capital Partners LLP now owns 33,768 shares of the industrial products company's stock worth $1,408,000 after acquiring an additional 28,235 shares during the period. Fundsmith LLP boosted its position in 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 during the last quarter. Crawford Investment Counsel Inc. purchased a new position in NAPCO Security Technologies in the third quarter worth about $4,456,000. Seizert Capital Partners LLC purchased a new stake in shares of NAPCO Security Technologies during the 4th quarter valued at about $1,857,000. Finally, Deprince Race & Zollo Inc. increased its position in shares of NAPCO Security Technologies by 24.8% during the 4th quarter. Deprince Race & Zollo Inc. now owns 72,024 shares of the industrial products company's stock valued at $3,003,000 after purchasing an additional 14,293 shares during 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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