NAPCO Security Technologies (NASDAQ:NSSC) Issues Earnings Results, Beats Estimates By $0.05 EPS

NAPCO Security Technologies (NASDAQ:NSSC) posted its quarterly earnings results on Monday. The industrial products company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.33 by $0.05, Briefing.com reports. 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 during the quarter, compared to analysts’ expectations of $47.82 million. During the same quarter in the previous year, the business posted $0.28 EPS. The firm’s revenue was up 12.4% on a year-over-year basis.

Here are the key takeaways from NAPCO Security Technologies’ conference call:

• Record Q2 revenue of $48.2M (+12.2% YoY) with recurring monthly service revenue up 12.5% and a prospective annualized recurring run rate of ~ $99M (up ~$4M from last quarter).
• Strong profitability and cash generation — operating income +32% to $14.8M, net income +29% to $13.5M (28% margin), adjusted EBITDA margin ~31.9%, free cash flow robust, $115.4M in cash/marketable securities, no debt, and a board-approved quarterly dividend increase to $0.15/share.
• Equipment business showing durable growth — equipment revenue +12% to $24.3M and equipment gross margin expanded to ~28% driven by price increases, less discounting, mix, and better manufacturing absorption; management says pricing actions are largely baked in for the year.
• Visible growth levers — new Chief Revenue Officer hired to accelerate sales, the MVP cloud access-control platform is being rolled out (expected to contribute more meaningfully in late 2026/early fiscal 2027), and StarLink radio conversions plus school-security projects remain material long-term opportunities.

NAPCO Security Technologies Trading Up 6.6%

NSSC stock opened at $43.74 on Wednesday. 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 P/E ratio of 32.89 and a beta of 1.51. NAPCO Security Technologies has a twelve month low of $19.00 and a twelve month high of $48.12.

NAPCO Security Technologies Increases Dividend

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

Insiders Place Their Bets

In other NAPCO Security Technologies news, SVP Stephen M. Spinelli sold 19,000 shares of the firm’s stock in a transaction on 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 approximately $37,352. This trade represents a 95.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 5.65% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NAPCO Security Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in NSSC. Arrowstreet Capital Limited Partnership boosted its stake in shares of NAPCO Security Technologies by 668.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 861,141 shares of the industrial products company’s stock valued at $36,986,000 after buying an additional 749,065 shares in the last quarter. Millennium Management LLC boosted its holdings in NAPCO Security Technologies by 62.4% during the first quarter. Millennium Management LLC now owns 769,789 shares of the industrial products company’s stock worth $17,721,000 after buying an additional 295,755 shares in the last quarter. Goldman Sachs Group Inc. grew its position in NAPCO Security Technologies by 75.8% during the first quarter. Goldman Sachs Group Inc. now owns 589,290 shares of the industrial products company’s stock worth $13,565,000 after buying an additional 254,007 shares during the period. First Trust Advisors LP acquired a new stake in shares of NAPCO Security Technologies in the 3rd quarter worth approximately $24,305,000. Finally, Qube Research & Technologies Ltd grew its holdings in NAPCO Security Technologies by 32.3% in the second quarter. Qube Research & Technologies Ltd now owns 462,750 shares of the industrial products company’s stock valued at $13,739,000 after purchasing an additional 112,895 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on NSSC. TD Cowen raised NAPCO Security Technologies from a “hold” rating to a “buy” rating in a report on Tuesday, November 4th. DA Davidson restated a “buy” rating and set a $50.00 target price on shares of NAPCO Security Technologies in a research note on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $49.00 price target (up from $47.00) on shares of NAPCO Security Technologies in a research note on Monday. Weiss Ratings reissued a “hold (c+)” rating on shares of NAPCO Security Technologies in a report on Wednesday, January 28th. Finally, Lake Street Capital restated a “buy” rating and set a $50.00 price objective (up previously from $39.00) on shares of NAPCO Security Technologies in a research report on Friday, October 10th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $47.83.

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.