NAPCO Security Technologies (NASDAQ:NSSC) Stock Price Breaks Below 200-Day Moving Average Following Weak Earnings

NAPCO Security Technologies, Inc. (NASDAQ:NSSC)’s stock price passed below its two hundred day moving average during trading on Monday following a weaker than expected earnings announcement. The stock has a two hundred day moving average of $39.07 and traded as low as $31.00. NAPCO Security Technologies shares last traded at $32.10, with a volume of 2,444,961 shares.

The industrial products company reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.04). NAPCO Security Technologies had a return on equity of 31.41% and a net margin of 21.27%. The firm’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 EPS.

NAPCO Security Technologies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Monday, December 14th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Monday, December 14th. This represents a $0.68 annualized dividend and a dividend yield of 2.1%. NAPCO Security Technologies’s payout ratio is currently 56.20%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on NSSC. DA Davidson set a $52.00 price target on shares of NAPCO Security Technologies in a report on Tuesday, August 25th. Benchmark reiterated a “buy” rating on shares of NAPCO Security Technologies in a research note on Tuesday, August 25th. Needham & Company LLC reissued a “buy” rating and set a $49.00 target price on shares of NAPCO Security Technologies in a research report on Friday, August 21st. Finally, Weiss Ratings raised NAPCO Security Technologies from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, NAPCO Security Technologies currently has a consensus rating of “Moderate Buy” and an average price target of $51.33.

Insider Activity

In other news, Director Donna Soloway sold 20,962 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $34.62, for a total transaction 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Richard Soloway sold 379,529 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the chairman owned 621,958 shares of the company’s stock, valued at $21,457,551. The trade was a 37.90% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 523,962 shares of company stock worth $18,257,168. Insiders own 2.96% of the company’s stock.

Institutional Trading of NAPCO Security Technologies

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in NAPCO Security Technologies during the second quarter valued at approximately $213,928,000. Copeland Capital Management LLC raised its position in 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 acquiring an additional 588,297 shares during the period. Jupiter Topco LLC purchased a new position in shares of NAPCO Security Technologies during the 2nd quarter worth $63,855,000. Wellington Management Group LLP boosted its stake in shares of NAPCO Security Technologies by 18.6% during the 2nd quarter. Wellington Management Group LLP now owns 1,102,280 shares of the industrial products company’s stock worth $41,865,000 after acquiring an additional 172,681 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of NAPCO Security Technologies by 4.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 702,852 shares of the industrial products company’s stock worth $27,683,000 after acquiring an additional 31,609 shares during the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

NAPCO Security Technologies Stock Performance

The business’s 50-day moving average price is $36.39 and its 200-day moving average price is $39.07. The stock has a market cap of $1.15 billion, a P/E ratio of 26.53 and a beta of 1.51.

NAPCO Security Technologies Company Profile

NAPCO Security Technologies, Inc develops, manufactures and sells electronic security products and solutions for commercial, institutional, industrial and residential applications. Its offerings include intrusion alarm systems, access control systems, fire alarm products, locking systems and related communications technologies.

The company markets products under brands that include NAPCO, StarLink, Alarm Lock, Continental Instruments and Firewolf. Its solutions are designed to support security dealers, alarm monitoring providers, systems integrators and other professional-channel customers, including applications in schools, healthcare facilities, businesses and government buildings.

Founded in 1969, NAPCO is headquartered in Amityville, New York.