Alta Capital Management LLC Decreases Stake in NAPCO Security Technologies, Inc. $NSSC

Alta Capital Management LLC lowered its stake in NAPCO Security Technologies, Inc. (NASDAQ:NSSC) by 7.5% in the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 224,118 shares of the industrial products company’s stock after selling 18,296 shares during the quarter. Alta Capital Management LLC’s holdings in NAPCO Security Technologies were worth $9,626,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Vest Financial LLC bought a new position in NAPCO Security Technologies during the 3rd quarter valued at approximately $1,612,000. Bessemer Group Inc. increased its stake in shares of NAPCO Security Technologies by 13.6% during the second quarter. Bessemer Group Inc. now owns 14,772 shares of the industrial products company’s stock valued at $439,000 after buying an additional 1,763 shares during the period. Wealth Enhancement Advisory Services LLC bought a new position in shares of NAPCO Security Technologies during the second quarter valued at approximately $345,000. Emerald Mutual Fund Advisers Trust lifted its stake in NAPCO Security Technologies by 3.0% in the second quarter. Emerald Mutual Fund Advisers Trust now owns 227,852 shares of the industrial products company’s stock worth $6,765,000 after acquiring an additional 6,678 shares during the period. Finally, Geode Capital Management LLC lifted its stake in NAPCO Security Technologies by 1.4% in the second quarter. Geode Capital Management LLC now owns 1,031,547 shares of the industrial products company’s stock worth $30,630,000 after acquiring an additional 14,501 shares during the period. Institutional investors own 85.07% of the company’s stock.

Key Headlines Impacting NAPCO Security Technologies

Here are the key news stories impacting NAPCO Security Technologies this week:

• Positive Sentiment: Q2 results beat consensus — NAPCO reported $0.38 EPS vs. $0.33 expected and revenue of $48.17M (up ~12% YoY), driving the initial rally. MarketBeat Q2 Report
• Positive Sentiment: Recurring service revenue strength — Management signaled an approximate $99M annualized recurring service revenue run‑rate with strong gross margin (~90% on RSR), which supports higher revenue visibility and multiple expansion. Seeking Alpha RSR Article
• Positive Sentiment: Dividend raised — Board declared a $0.15 quarterly dividend (7.1% increase), showing shareholder returns and confidence in cash flow; ex‑dividend March 12, payable April 3. Press Release (PDF)
• Positive Sentiment: Analyst reaffirmation — DA Davidson reaffirmed a “buy” and set a $50 price target (~14% upside from current levels), which can support continued investor interest. Benzinga on DA Davidson
• Neutral Sentiment: Investor materials and coverage — The company posted its earnings presentation and call transcript for Q2; these provide more detail on guidance, margins and recurring revenue composition for investors doing deeper due diligence. Earnings Presentation

Insider Buying and Selling

In related news, SVP Stephen M. Spinelli sold 19,000 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $40.25, for a total transaction of $764,750.00. Following the sale, the senior vice president directly owned 928 shares of the company’s stock, valued at approximately $37,352. This represents a 95.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 5.65% of the company’s stock.

NAPCO Security Technologies Stock Up 6.6%

NAPCO Security Technologies stock opened at $43.74 on Wednesday. NAPCO Security Technologies, Inc. has a twelve month low of $19.00 and a twelve month high of $48.12. The company has a market capitalization of $1.56 billion, a P/E ratio of 32.89 and a beta of 1.51. The stock’s 50 day moving average is $40.89 and its 200 day moving average is $39.43.

NAPCO Security Technologies (NASDAQ:NSSC) last announced its quarterly earnings data on Monday, February 2nd. The industrial products company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.05. NAPCO Security Technologies had a return on equity of 28.10% and a net margin of 24.70%.The business 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 earned $0.28 earnings per share. The firm’s quarterly revenue was up 12.4% compared to the same quarter last year. As a group, equities analysts expect that NAPCO Security Technologies, Inc. will post 1.24 EPS for the current year.

NAPCO Security Technologies Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 3rd. Investors of record on Thursday, March 12th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Thursday, March 12th. This is a positive change from NAPCO Security Technologies’s previous quarterly dividend of $0.14. NAPCO Security Technologies’s dividend payout ratio (DPR) is presently 45.53%.

Analysts Set New Price Targets

NSSC has been the topic of a number of research analyst reports. Mizuho set a $48.00 price objective on shares of NAPCO Security Technologies and gave the company an “outperform” rating in a research report on Friday, October 17th. Lake Street Capital reiterated a “buy” rating and set a $50.00 price target (up previously from $39.00) on shares of NAPCO Security Technologies in a research report on Friday, October 10th. Needham & Company LLC reissued 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. Zacks Research cut NAPCO Security Technologies from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 6th. Finally, TD Cowen upgraded NAPCO Security Technologies from a “hold” rating to a “buy” rating in a report on Tuesday, November 4th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price 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.