Napco Security Technologies (NASDAQ:NSSC) Shares Gap Down on Disappointing Earnings

Napco Security Technologies, Inc. (NASDAQ:NSSC) gapped down before the market opened on Monday following a weaker than expected earnings announcement. The stock had previously closed at $38.59, but opened at $33.00. Napco Security Technologies shares last traded at $32.89, with a volume of 198,962 shares.

The industrial products company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.05). Napco Security Technologies had a return on equity of 30.51% and a net margin of 26.38%. The firm had revenue of $44.00 million for the quarter, compared to analyst estimates of $46.56 million. During the same period last year, the company earned $0.28 EPS. The company’s revenue was up 5.5% compared to the same quarter last year.

Napco Security Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 3rd. Investors of record on Thursday, December 12th will be paid a $0.125 dividend. The ex-dividend date is Thursday, December 12th. This represents a $0.50 annualized dividend and a yield of 1.39%. Napco Security Technologies’s dividend payout ratio (DPR) is currently 37.31%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on NSSC shares. Lake Street Capital reduced their price target on Napco Security Technologies from $60.00 to $41.00 and set a “buy” rating on the stock in a research report on Tuesday. Craig Hallum reduced their price objective on shares of Napco Security Technologies from $65.00 to $48.00 and set a “buy” rating on the stock in a research note on Tuesday. DA Davidson cut their price target on shares of Napco Security Technologies from $55.00 to $48.00 and set a “buy” rating for the company in a report on Tuesday. TD Cowen cut their target price on Napco Security Technologies from $60.00 to $46.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Needham & Company LLC increased their target price on shares of Napco Security Technologies from $52.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, August 27th. One research analyst has rated the stock with a sell rating, two have given a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $47.14.

Insider Activity

In other news, Director Paul Stephen Beeber sold 708 shares of the business’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $37.12, for a total value of $26,280.96. Following the transaction, the director now owns 2,681 shares in the company, valued at approximately $99,518.72. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 5.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Napco Security Technologies

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in Napco Security Technologies by 4.2% during the 1st quarter. Vanguard Group Inc. now owns 2,556,134 shares of the industrial products company’s stock valued at $102,654,000 after purchasing an additional 102,010 shares in the last quarter. Copeland Capital Management LLC increased its holdings in Napco Security Technologies by 108.6% during the 3rd quarter. Copeland Capital Management LLC now owns 1,038,128 shares of the industrial products company’s stock worth $42,003,000 after purchasing an additional 540,436 shares in the last quarter. Vaughan Nelson Investment Management L.P. bought a new position in Napco Security Technologies during the 2nd quarter valued at $31,504,000. Emerald Advisers LLC lifted its position in shares of Napco Security Technologies by 4.0% during the third quarter. Emerald Advisers LLC now owns 508,257 shares of the industrial products company’s stock valued at $20,564,000 after purchasing an additional 19,674 shares in the last quarter. Finally, Emerald Mutual Fund Advisers Trust grew its position in Napco Security Technologies by 3.5% in the 3rd quarter. Emerald Mutual Fund Advisers Trust now owns 414,013 shares of the industrial products company’s stock worth $16,751,000 after purchasing an additional 14,077 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company’s stock.

Napco Security Technologies Stock Performance

The company’s 50 day simple moving average is $39.86 and its 200 day simple moving average is $46.82. The stock has a market cap of $1.32 billion, a PE ratio of 26.80 and a beta of 1.64.

Napco Security Technologies Company Profile

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.