NAPCO Security Technologies (NASDAQ:NSSC) Sets New 52-Week Low Following Insider Selling

NAPCO Security Technologies, Inc. (NASDAQ:NSSC) hit a new 52-week low during trading on Friday following insider selling activity. The company traded as low as $33.91 and last traded at $35.28, with a volume of 1115417 shares traded. The stock had previously closed at $35.73.

Specifically, Director Donna Anne Soloway sold 20,962 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $34.62, for a total value of $725,704.44. Following the completion of the transaction, the director directly owned 20,962 shares of the company’s stock, valued at $725,704.44. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Donna Anne Soloway sold 28,000 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $35.98, for a total value of $1,007,440.00. Following the sale, the director directly owned 20,962 shares of the company’s stock, valued at $754,212.76. The trade was a 57.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other NAPCO Security Technologies news, Chairman Richard Soloway sold 379,529 shares of the business’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $34.50, for a total value of $13,093,750.50. Following the transaction, the chairman owned 621,958 shares of the company’s stock, valued at approximately $21,457,551. The trade was a 37.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analyst Ratings Changes

A number of brokerages have issued reports on NSSC. DA Davidson set a $52.00 price objective on NAPCO Security Technologies in a research note on Tuesday. Weiss Ratings reiterated a “hold (c)” rating on shares of NAPCO Security Technologies in a research note on Friday, August 7th. Needham & Company LLC reissued a “buy” rating and issued a $49.00 price target on shares of NAPCO Security Technologies in a report on Friday, August 21st. Benchmark restated a “buy” rating on shares of NAPCO Security Technologies in a research report on Tuesday. Finally, TD Cowen restated a “buy” rating and set a $53.00 price objective (up from $50.00) on shares of NAPCO Security Technologies in a report on Tuesday, May 5th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $50.40.

Key NAPCO Security Technologies News

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

• Negative Sentiment: Chairman Richard Soloway sold a combined 475,000 shares on August 26 and 27 for approximately $16.5 million. The transactions reduced his direct ownership by roughly 46%, leaving him with 621,958 shares. The size of the sales may concern investors because they came from a senior executive, although the filings do not state the reason for the transactions. SEC filing for Richard Soloway stock sales
• Negative Sentiment: Director Donna Anne Soloway sold 48,962 shares across the same two sessions for approximately $1.7 million, cutting her holdings to 20,962 shares. The combined insider sales totaled 523,962 shares and more than $18.2 million in proceeds. SEC filing for Donna Anne Soloway stock sales
• Negative Sentiment: NSSC shares hit a new 52-week low, reinforcing concerns about momentum. The stock is trading below both its 50-day and 200-day moving averages, indicating continued technical weakness. NAPCO Security Technologies hits new 52-week low

NAPCO Security Technologies Price Performance

The firm has a fifty day simple moving average of $37.44 and a two-hundred day simple moving average of $39.81. The firm has a market capitalization of $1.26 billion, a P/E ratio of 29.21 and a beta of 1.45.

NAPCO Security Technologies (NASDAQ:NSSC) last released its earnings results on Monday, August 24th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.11. The business had revenue of $55.81 million during the quarter, compared to the consensus estimate 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 for the quarter was up 10.1% on a year-over-year basis. During the same period last year, the business posted $0.33 earnings per share. On average, research analysts anticipate that NAPCO Security Technologies, Inc. will post 1.66 EPS for the current year.

NAPCO Security Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 11th will be issued a $0.17 dividend. This is an increase from NAPCO Security Technologies’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Friday, September 11th. This represents a $0.68 annualized dividend and a yield of 1.9%. NAPCO Security Technologies’s payout ratio is 49.59%.

Institutional Investors Weigh In On NAPCO Security Technologies

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in NAPCO Security Technologies during the second quarter valued at about $213,928,000. Vanguard Group Inc. increased its stake in shares of 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 in the last quarter. Copeland Capital Management LLC increased its stake in shares of NAPCO Security Technologies by 41.4% in 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 purchasing an additional 588,297 shares in the last quarter. Jupiter Topco LLC bought a new stake in shares of NAPCO Security Technologies in the second quarter valued at approximately $63,855,000. Finally, Janus Henderson Group PLC raised its position in shares of NAPCO Security Technologies by 3.0% in the fourth quarter. Janus Henderson Group PLC now owns 1,569,363 shares of the industrial products company’s stock valued at $65,457,000 after purchasing an additional 45,093 shares during the period. 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.