Napco Security Technologies (NASDAQ:NSSC) Shares Gap Up Following Better-Than-Expected Earnings

Napco Security Technologies, Inc. (NASDAQ:NSSC) shares gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $23.78, but opened at $26.56. Napco Security Technologies shares last traded at $25.35, with a volume of 279,027 shares trading hands.

The industrial products company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. The firm had revenue of $43.96 million during the quarter, compared to analysts’ expectations of $45.11 million. Napco Security Technologies had a net margin of 25.94% and a return on equity of 27.65%. The firm’s quarterly revenue was down 10.8% on a year-over-year basis. During the same quarter last year, the company posted $0.37 EPS.

Napco Security Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 3rd. Investors of record on Thursday, June 12th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 2.27%. The ex-dividend date is Thursday, June 12th. This is an increase from Napco Security Technologies’s previous quarterly dividend of $0.13. Napco Security Technologies’s payout ratio is currently 38.46%.

Wall Street Analyst Weigh In

Several research firms have weighed in on NSSC. TD Cowen downgraded Napco Security Technologies from a “buy” rating to a “hold” rating and dropped their target price for the company from $46.00 to $27.00 in a research report on Tuesday, February 4th. Craig Hallum downgraded shares of Napco Security Technologies from a “buy” rating to a “hold” rating and set a $28.00 target price on the stock. in a research note on Tuesday, February 4th. Cowen lowered shares of Napco Security Technologies from a “buy” rating to a “hold” rating in a report on Tuesday, February 4th. Lake Street Capital set a $26.00 price objective on Napco Security Technologies in a research report on Monday. Finally, Needham & Company LLC decreased their target price on Napco Security Technologies from $37.00 to $32.00 and set a “buy” rating for the company in a report on Tuesday. Six investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $34.33.

Institutional Trading of Napco Security Technologies

A number of hedge funds and other institutional investors have recently bought and sold shares of NSSC. GAMMA Investing LLC increased its holdings in shares of Napco Security Technologies by 227.2% in the 1st quarter. GAMMA Investing LLC now owns 1,106 shares of the industrial products company’s stock valued at $25,000 after acquiring an additional 768 shares during the last quarter. New Age Alpha Advisors LLC purchased a new position in Napco Security Technologies in the fourth quarter valued at approximately $32,000. Caption Management LLC acquired a new stake in Napco Security Technologies during the fourth quarter worth approximately $33,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Napco Security Technologies during the 4th quarter worth approximately $53,000. Finally, Mpwm Advisory Solutions LLC acquired a new position in shares of Napco Security Technologies in the 4th quarter valued at $54,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Napco Security Technologies Stock Performance

The stock’s 50-day moving average is $23.08 and its 200 day moving average is $30.72. The stock has a market capitalization of $899.83 million, a PE ratio of 19.02 and a beta of 1.41.

About Napco Security Technologies

Napco Security Technologies, Inc develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks.