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

Napco Security Technologies, Inc. (NASDAQ:NSSC) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $26.93, but opened at $26.00. Napco Security Technologies shares last traded at $26.12, with a volume of 213,035 shares.

The industrial products company reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.06). The firm had revenue of $42.90 million during the quarter, compared to the consensus estimate of $49.93 million. Napco Security Technologies had a net margin of 26.43% and a return on equity of 29.56%. Napco Security Technologies’s revenue was down 9.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.34 EPS.

Napco Security Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 3rd. Investors of record on Wednesday, March 12th will be paid a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.89%. The ex-dividend date of this dividend is Wednesday, March 12th. Napco Security Technologies’s dividend payout ratio (DPR) is 36.76%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. DA Davidson reduced their price objective on shares of Napco Security Technologies from $55.00 to $48.00 and set a “buy” rating on the stock in a research note on Tuesday, November 5th. Needham & Company LLC reduced their price target on Napco Security Technologies from $52.00 to $40.00 and set a “buy” rating on the stock in a research report on Tuesday. TD Cowen downgraded Napco Security Technologies from a “buy” rating to a “hold” rating and dropped their price objective for the company from $46.00 to $27.00 in a report on Tuesday. Lake Street Capital cut their target price on Napco Security Technologies from $60.00 to $41.00 and set a “buy” rating on the stock in a research note on Tuesday, November 5th. Finally, Craig Hallum lowered Napco Security Technologies from a “buy” rating to a “hold” rating and set a $28.00 target price for the company. in a research report on Tuesday. Five research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Napco Security Technologies presently has a consensus rating of “Hold” and a consensus price target of $39.14.

Institutional Trading of Napco Security Technologies

Several large investors have recently made changes to their positions in NSSC. Farther Finance Advisors LLC lifted its holdings in shares of Napco Security Technologies by 72,300.0% in the third quarter. Farther Finance Advisors LLC now owns 724 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 723 shares during the last quarter. KBC Group NV increased its position in Napco Security Technologies by 61.4% during the 3rd quarter. KBC Group NV now owns 1,115 shares of the industrial products company’s stock worth $45,000 after purchasing an additional 424 shares in the last quarter. First Horizon Advisors Inc. lifted its stake in Napco Security Technologies by 109.7% in the 3rd quarter. First Horizon Advisors Inc. now owns 1,107 shares of the industrial products company’s stock valued at $45,000 after purchasing an additional 579 shares during the last quarter. Huntington National Bank boosted its position in Napco Security Technologies by 54.7% in the third quarter. Huntington National Bank now owns 1,777 shares of the industrial products company’s stock valued at $72,000 after buying an additional 628 shares in the last quarter. Finally, Arcadia Investment Management Corp MI bought a new stake in shares of Napco Security Technologies during the fourth quarter worth $86,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

Napco Security Technologies Price Performance

The company has a market capitalization of $969.09 million, a price-to-earnings ratio of 19.43 and a beta of 1.64. The firm’s fifty day moving average price is $36.19 and its 200-day moving average price is $40.99.

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.