NAPCO Security Technologies (NASDAQ:NSSC) Shares Gap Up After Strong Earnings

NAPCO Security Technologies, Inc. (NASDAQ:NSSC) gapped up before the market opened on Monday following a better than expected earnings announcement. 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 trading hands.

The industrial products company reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.33 by $0.05. The firm had revenue of $48.17 million during the quarter, compared to the consensus estimate of $47.82 million. NAPCO Security Technologies had a net margin of 23.76% and a return on equity of 26.09%. The company’s revenue was up 12.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.28 EPS.

NAPCO Security Technologies Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 3rd. Shareholders of record on Thursday, March 12th will be given a dividend of $0.15 per share. This is a boost from NAPCO Security Technologies’s previous quarterly dividend of $0.14. This represents a $0.60 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Thursday, March 12th. NAPCO Security Technologies’s dividend payout ratio (DPR) is 45.53%.

Trending Headlines about NAPCO Security Technologies

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

• Positive Sentiment: Q2 beat on both EPS and revenue: NAPCO reported $0.38 EPS vs. $0.33 consensus and $48.17M in revenue (up ~12% YoY), with gross margin expansion and a 23.8% net margin — the fundamentals drove investor optimism. NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q2 Results
• Positive Sentiment: Recurring service revenue strength: RSR rose ~12.5% YoY to $23.8M, with a ~90% gross margin and an implied annualized RSR run‑rate of roughly $99M — improving revenue visibility and margin mix. NAPCO Security Technologies, Inc. Reports Fiscal 2026 Q2 Results
• Positive Sentiment: Dividend raised: Board declared a $0.15 quarterly dividend (7.1% increase vs prior $0.14), signaling cash‑flow confidence and returning capital to shareholders; ex‑dividend March 12, payable April 3. Press Release / Dividend Detail
• Positive Sentiment: Market reaction and coverage: Multiple outlets noted the strong quarter and share move, which reinforces positive investor sentiment and momentum. Napco Security Technologies shares jump nearly 6% after strong Q2 beat
• Neutral Sentiment: Earnings call transcript available for details: The Q2 call transcript provides management commentary on demand, backlog, margins and RSR cadence — useful for investors who want color on sustainability of growth. Napco Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Snapshot / previews: Coverage from WTOP and Yahoo Finance summarizes results and pre‑earnings expectations — useful for quick checks but largely repeat the company release. Napco: Fiscal Q2 Earnings Snapshot

Analysts Set New Price Targets

A number of equities analysts have recently commented on NSSC shares. Mizuho set a $48.00 price target on NAPCO Security Technologies and gave the stock an “outperform” rating in a report on Friday, October 17th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of NAPCO Security Technologies in a report on Wednesday, January 28th. Lake Street Capital reissued a “buy” rating and issued a $50.00 price target (up from $39.00) on shares of NAPCO Security Technologies in a report on Friday, October 10th. TD Cowen upgraded shares of NAPCO Security Technologies from a “hold” rating to a “buy” rating in a research report on Tuesday, November 4th. Finally, Zacks Research cut shares of NAPCO Security Technologies from a “strong-buy” rating to a “hold” rating in a research note on Thursday, November 6th. Six analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $47.83.

Insider Transactions at NAPCO Security Technologies

In other NAPCO Security Technologies news, SVP Stephen M. Spinelli sold 19,000 shares of the business’s stock in a transaction that occurred on 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 transaction, the senior vice president owned 928 shares of the company’s stock, valued at $37,352. The trade was a 95.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 5.65% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cornerstone Planning Group LLC purchased a new stake in NAPCO Security Technologies during the third quarter valued at about $25,000. IFP Advisors Inc increased its position in shares of NAPCO Security Technologies by 193.3% during the 3rd quarter. IFP Advisors Inc now owns 572 shares of the industrial products company’s stock valued at $25,000 after purchasing an additional 377 shares during the last quarter. Maseco LLP purchased a new position in shares of NAPCO Security Technologies during the 4th quarter valued at about $25,000. Exchange Traded Concepts LLC purchased a new position in shares of NAPCO Security Technologies during the 3rd quarter valued at about $26,000. Finally, State of Wyoming bought a new stake in NAPCO Security Technologies in the 3rd quarter worth approximately $41,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

NAPCO Security Technologies Price Performance

The company has a 50 day simple moving average of $40.83 and a 200-day simple moving average of $39.33. The firm has a market cap of $1.46 billion, a PE ratio of 33.35 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.