NAPCO Security Technologies (NASDAQ:NSSC) Hits New 1-Year Low After Insider Selling

Shares of NAPCO Security Technologies, Inc. (NASDAQ:NSSC) hit a new 52-week low during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $33.91 and last traded at $35.28, with a volume of 1115417 shares changing hands. The stock had previously closed at $35.73.

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

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. DA Davidson set a $52.00 target price on shares of NAPCO Security Technologies in a research note on Tuesday. TD Cowen restated a “buy” rating and issued a $53.00 price target (up from $50.00) on shares of NAPCO Security Technologies in a research report on Tuesday, May 5th. Wall Street Zen cut NAPCO Security Technologies from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Weiss Ratings reiterated a “hold (c)” rating on shares of NAPCO Security Technologies in a research report on Friday, August 7th. Finally, Benchmark reissued a “buy” rating on shares of NAPCO Security Technologies in a research note on Tuesday. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $50.40.

Key Headlines Impacting NAPCO Security Technologies

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 business’s 50 day simple moving average is $37.44 and its 200 day simple moving average is $39.81. The company has a market capitalization of $1.26 billion, a PE ratio of 29.21 and a beta of 1.45.

NAPCO Security Technologies (NASDAQ:NSSC) last posted its earnings results on Monday, August 24th. The industrial products company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.11. NAPCO Security Technologies had a net margin of 21.27% and a return on equity of 31.41%. The company had revenue of $55.81 million for the quarter, compared to analyst estimates of $52.51 million. During the same period in the previous year, the business posted $0.33 EPS. NAPCO Security Technologies’s revenue was up 10.1% on a year-over-year basis. As a group, 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 declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 11th will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, September 11th. This is a boost from NAPCO Security Technologies’s previous quarterly dividend of $0.15. NAPCO Security Technologies’s dividend payout ratio is presently 49.59%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its position in NAPCO Security Technologies by 193.3% in the third quarter. IFP Advisors Inc now owns 572 shares of the industrial products company’s stock worth $25,000 after acquiring an additional 377 shares during the period. KBC Group NV purchased a new stake in NAPCO Security Technologies in the first quarter valued at $26,000. Advisory Services Network LLC acquired a new position in shares of NAPCO Security Technologies in the 3rd quarter valued at $41,000. Blue Trust Inc. acquired a new position in shares of NAPCO Security Technologies in the 1st quarter valued at $44,000. Finally, Acadian Asset Management LLC purchased a new position in shares of NAPCO Security Technologies during the 1st quarter worth $91,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

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.