NAPCO Security Technologies (NASDAQ:NSSC) Given Buy Rating at DA Davidson

DA Davidson reiterated their buy rating on shares of NAPCO Security Technologies (NASDAQ:NSSC) in a research report sent to investors on Tuesday,Benzinga reports. They currently have a $50.00 price target on the industrial products company’s stock.

Other research analysts have also issued research reports about the company. Needham & Company LLC reiterated a “buy” rating and issued a $49.00 price target (up previously from $47.00) on shares of NAPCO Security Technologies in a report on Monday. Lake Street Capital reiterated a “buy” rating and issued a $50.00 target price (up from $39.00) on shares of NAPCO Security Technologies in a report on Friday, October 10th. TD Cowen raised shares of NAPCO Security Technologies from a “hold” rating to a “buy” rating in a research report on Tuesday, November 4th. Mizuho set a $48.00 price objective on shares of NAPCO Security Technologies and gave the stock an “outperform” rating in a report on Friday, October 17th. Finally, Zacks Research lowered 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 assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $47.83.

NAPCO Security Technologies Trading Up 6.6%

NSSC opened at $43.74 on Tuesday. The company has a fifty day moving average price of $40.89 and a two-hundred day moving average price of $39.43. NAPCO Security Technologies has a 1-year low of $19.00 and a 1-year high of $48.12. The company has a market cap of $1.56 billion, a P/E ratio of 32.89 and a beta of 1.51.

NAPCO Security Technologies (NASDAQ:NSSC) last released its quarterly earnings data on Monday, February 2nd. The industrial products company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.05. NAPCO Security Technologies had a net margin of 24.70% and a return on equity of 28.10%. The company had revenue of $48.17 million for the quarter, compared to analysts’ expectations of $47.82 million. During the same quarter in the prior year, the firm earned $0.28 EPS. The business’s revenue was up 12.4% on a year-over-year basis. On average, research analysts forecast that NAPCO Security Technologies will post 1.24 EPS for the current fiscal year.

NAPCO Security Technologies Increases Dividend

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

Insider Activity at NAPCO Security Technologies

In related news, SVP Stephen M. Spinelli sold 19,000 shares of the firm’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $40.25, for a total transaction of $764,750.00. Following the transaction, the senior vice president directly owned 928 shares of the company’s stock, valued at $37,352. This trade represents a 95.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 5.65% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NAPCO Security Technologies

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Seizert Capital Partners LLC purchased a new position in shares of NAPCO Security Technologies in the 4th quarter worth approximately $1,857,000. Strs Ohio lifted its holdings in NAPCO Security Technologies by 92.6% during the fourth quarter. Strs Ohio now owns 18,300 shares of the industrial products company’s stock worth $763,000 after acquiring an additional 8,800 shares during the period. Vest Financial LLC boosted its position in NAPCO Security Technologies by 11.4% in the fourth quarter. Vest Financial LLC now owns 41,805 shares of the industrial products company’s stock worth $1,743,000 after purchasing an additional 4,268 shares during the last quarter. Vanguard Group Inc. boosted its position in NAPCO Security Technologies by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 2,882,063 shares of the industrial products company’s stock worth $120,182,000 after purchasing an additional 31,644 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in NAPCO Security Technologies by 27.1% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,908 shares of the industrial products company’s stock valued at $330,000 after purchasing an additional 1,686 shares during the period. Hedge funds and other institutional investors own 85.07% of the company’s stock.

NAPCO Security Technologies News Summary

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

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.