NAPCO Security Technologies (NASDAQ:NSSC) Reaches New 1-Year Low - Should You Sell?

Key Points

• NAPCO Security Technologies shares hit a new 52-week low, trading as low as $33.91 and below both their 50-day and 200-day moving averages.
• Despite the stock decline, the company reported strong quarterly results, with earnings of $0.50 per share and revenue of $55.81 million, both exceeding analyst expectations; revenue increased 10.1% year over year.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus rating and an average price target of $50.40. NAPCO also raised its quarterly dividend to $0.17, equivalent to a 1.9% yield.

NAPCO Security Technologies, Inc. (NASDAQ:NSSC - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The stock traded as low as $33.91 and last traded at $35.28, with a volume of 1115417 shares trading hands. The stock had previously closed at $35.73.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NSSC. Needham & Company LLC restated a "buy" rating and issued a $49.00 price target on shares of NAPCO Security Technologies in a report on Friday, August 21st. Wall Street Zen cut shares of NAPCO Security Technologies from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Benchmark restated a "buy" rating on shares of NAPCO Security Technologies in a research note on Tuesday. DA Davidson set a $52.00 price target on shares of NAPCO Security Technologies in a report on Tuesday. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of NAPCO Security Technologies in a research note on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, NAPCO Security Technologies has a consensus rating of "Moderate Buy" and a consensus price target of $50.40.

NAPCO Security Technologies Price Performance

The stock's fifty day simple moving average is $37.49 and its 200-day simple moving average is $39.85. The stock has a market cap of $1.26 billion, a P/E ratio of 29.16 and a beta of 1.45.

NAPCO Security Technologies (NASDAQ:NSSC - Get Free Report) last posted its earnings results on Monday, August 24th. The industrial products company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.39 by $0.11. The company had revenue of $55.81 million during the quarter, compared to analyst estimates of $52.51 million. NAPCO Security Technologies had a return on equity of 31.41% and a net margin of 21.27%.The business's revenue was up 10.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.33 earnings per share. Analysts forecast that NAPCO Security Technologies, Inc. will post 1.66 EPS for the current year.

NAPCO Security Technologies Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 11th will be given a $0.17 dividend. This is a boost from NAPCO Security Technologies's previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, September 11th. NAPCO Security Technologies's dividend payout ratio is 57.69%.

Hedge Funds Weigh In On NAPCO Security Technologies

Institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in NAPCO Security Technologies in the 2nd quarter valued at about $213,928,000. Vanguard Group Inc. raised its holdings in shares of NAPCO Security Technologies by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 2,882,063 shares of the industrial products company's stock valued at $120,182,000 after buying an additional 31,644 shares during the last quarter. Copeland Capital Management LLC boosted its position in shares of NAPCO Security Technologies by 41.4% during the first quarter. Copeland Capital Management LLC now owns 2,009,089 shares of the industrial products company's stock worth $79,138,000 after buying an additional 588,297 shares during the period. Jupiter Topco LLC bought a new position in NAPCO Security Technologies in the 2nd quarter worth approximately $63,855,000. Finally, Janus Henderson Group PLC increased its position in NAPCO Security Technologies by 3.0% in the 4th quarter. Janus Henderson Group PLC now owns 1,569,363 shares of the industrial products company's stock valued at $65,457,000 after acquiring an additional 45,093 shares during the period. Institutional investors own 85.07% of the company's stock.

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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