NAPCO Security Technologies (NASDAQ:NSSC) Shares Gap Up on Better-Than-Expected Earnings

NAPCO Security Technologies, Inc. (NASDAQ:NSSC) gapped up before the market opened on Monday following a stronger than expected earnings report. The stock had previously closed at $36.89, but opened at $39.20. NAPCO Security Technologies shares last traded at $39.00, with a volume of 143,824 shares changing hands.

The industrial products company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.05. The business had revenue of $48.17 million for the quarter, compared to analyst estimates of $47.82 million. NAPCO Security Technologies had a net margin of 24.70% and a return on equity of 28.10%. The company’s revenue for the quarter was up 12.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.28 earnings per share.

NAPCO Security Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 3rd. Shareholders of record on Thursday, March 12th will be paid a dividend of $0.15 per share. This is an increase from NAPCO Security Technologies’s previous quarterly dividend of $0.14. The ex-dividend date is Thursday, March 12th. This represents a $0.60 annualized dividend and a yield of 1.4%. NAPCO Security Technologies’s dividend payout ratio (DPR) is presently 45.53%.

Trending Headlines about NAPCO Security Technologies

Here are the key news stories impacting NAPCO Security Technologies this week:

• Positive Sentiment: Q2 results beat consensus — NAPCO reported $0.38 EPS vs. $0.33 expected and revenue of $48.17M (up ~12% YoY), driving the initial rally. MarketBeat Q2 Report
• Positive Sentiment: Recurring service revenue strength — Management signaled an approximate $99M annualized recurring service revenue run‑rate with strong gross margin (~90% on RSR), which supports higher revenue visibility and multiple expansion. Seeking Alpha RSR Article
• Positive Sentiment: Dividend raised — Board declared a $0.15 quarterly dividend (7.1% increase), showing shareholder returns and confidence in cash flow; ex‑dividend March 12, payable April 3. Press Release (PDF)
• Positive Sentiment: Analyst reaffirmation — DA Davidson reaffirmed a “buy” and set a $50 price target (~14% upside from current levels), which can support continued investor interest. Benzinga on DA Davidson
• Neutral Sentiment: Investor materials and coverage — The company posted its earnings presentation and call transcript for Q2; these provide more detail on guidance, margins and recurring revenue composition for investors doing deeper due diligence. Earnings Presentation

Analyst Upgrades and Downgrades

NSSC has been the topic of a number of research analyst reports. Lake Street Capital reaffirmed a “buy” rating and issued a $50.00 price target (up from $39.00) on shares of NAPCO Security Technologies in a research note on Friday, October 10th. TD Cowen upgraded NAPCO Security Technologies from a “hold” rating to a “buy” rating in a report on Tuesday, November 4th. DA Davidson reaffirmed a “buy” rating and set a $50.00 target price on shares of NAPCO Security Technologies in a report on Tuesday. Zacks Research cut shares of NAPCO Security Technologies from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 6th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of NAPCO Security Technologies in a research note on Wednesday, January 28th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $47.83.

Insider Buying and Selling at NAPCO Security Technologies

In related news, SVP Stephen M. Spinelli sold 19,000 shares of the company’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $40.25, for a total value of $764,750.00. Following the completion of the sale, the senior vice president owned 928 shares of the company’s stock, valued at approximately $37,352. This represents a 95.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 5.65% of the company’s stock.

Hedge Funds Weigh In On NAPCO Security Technologies

A number of institutional investors have recently bought and sold shares of the company. Vest Financial LLC purchased a new stake in shares of NAPCO Security Technologies in the 3rd quarter valued at approximately $1,612,000. Bessemer Group Inc. boosted its position in shares of NAPCO Security Technologies by 13.6% during the 2nd quarter. Bessemer Group Inc. now owns 14,772 shares of the industrial products company’s stock worth $439,000 after purchasing an additional 1,763 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new stake in NAPCO Security Technologies in the 2nd quarter valued at approximately $345,000. Emerald Mutual Fund Advisers Trust raised its position in NAPCO Security Technologies by 3.0% in the second quarter. Emerald Mutual Fund Advisers Trust now owns 227,852 shares of the industrial products company’s stock valued at $6,765,000 after purchasing an additional 6,678 shares during the period. Finally, Geode Capital Management LLC raised its position in NAPCO Security Technologies by 1.4% in the second quarter. Geode Capital Management LLC now owns 1,031,547 shares of the industrial products company’s stock valued at $30,630,000 after purchasing an additional 14,501 shares during the period. 85.07% of the stock is owned by hedge funds and other institutional investors.

NAPCO Security Technologies Price Performance

The business has a 50 day simple moving average of $40.89 and a 200 day simple moving average of $39.43. The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of 32.89 and a beta of 1.51.

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.