NAPCO Security Technologies (NASDAQ:NSSC) Price Target Cut to $45.00 by Analysts at TD Cowen

NAPCO Security Technologies (NASDAQ:NSSC) had its target price lowered by TD Cowen from $55.00 to $45.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a “buy” rating on the industrial products company’s stock. TD Cowen‘s price target suggests a potential upside of 40.85% from the company’s current price.

NSSC has been the topic of a number of other reports. DA Davidson set a $52.00 target price on shares of NAPCO Security Technologies in a report on Tuesday, August 25th. Weiss Ratings raised shares of NAPCO Security Technologies from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Needham & Company LLC cut their price target on shares of NAPCO Security Technologies from $49.00 to $43.00 and set a “buy” rating for the company in a research note on Monday. Finally, Benchmark reissued a “buy” rating on shares of NAPCO Security Technologies in a research report on Tuesday, August 25th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $46.67.

NAPCO Security Technologies Price Performance

NSSC stock traded down $0.15 during midday trading on Tuesday, hitting $31.95. The company’s stock had a trading volume of 120,610 shares, compared to its average volume of 472,131. NAPCO Security Technologies has a twelve month low of $31.00 and a twelve month high of $51.77. The company’s fifty day moving average price is $36.39 and its 200 day moving average price is $39.07. The stock has a market capitalization of $1.14 billion, a P/E ratio of 26.30 and a beta of 1.49.

NAPCO Security Technologies (NASDAQ:NSSC) last posted its quarterly earnings data on Monday, November 2nd. The industrial products company reported $0.34 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.04). NAPCO Security Technologies had a return on equity of 31.41% and a net margin of 21.27%. The business had revenue of $49.98 million for the quarter, compared to analyst estimates of $52.05 million. During the same quarter in the prior year, the company earned $0.34 earnings per share. The company’s quarterly revenue was up 1.6% on a year-over-year basis. Equities analysts expect that NAPCO Security Technologies will post 1.68 EPS for the current fiscal year.

Insider Transactions at NAPCO Security Technologies

In related news, Chairman Richard Soloway sold 379,529 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $34.50, for a total transaction of $13,093,750.50. Following the sale, the chairman owned 621,958 shares of the company’s stock, valued at $21,457,551. This trade represents a 37.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Donna Soloway sold 28,000 shares of the business’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $35.98, for a total value of $1,007,440.00. Following the sale, the director owned 20,962 shares in the company, valued at $754,212.76. This represents a 57.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 523,962 shares of company stock valued at $18,257,168 in the last three months. Company insiders own 5.65% of the company’s stock.

Hedge Funds Weigh In On NAPCO Security Technologies

Several large investors have recently bought and sold shares of NSSC. Alps Advisors Inc. boosted its stake in shares of NAPCO Security Technologies by 37.3% during the third quarter. Alps Advisors Inc. now owns 16,182 shares of the industrial products company’s stock valued at $576,000 after purchasing an additional 4,393 shares in the last quarter. CenterBook Partners LP grew its holdings in shares of NAPCO Security Technologies by 1,025.8% during the third quarter. CenterBook Partners LP now owns 197,371 shares of the industrial products company’s stock worth $7,030,000 after purchasing an additional 179,839 shares during the last quarter. Bridge City Capital LLC increased its stake in shares of NAPCO Security Technologies by 18.9% in the third quarter. Bridge City Capital LLC now owns 99,999 shares of the industrial products company’s stock valued at $3,562,000 after buying an additional 15,868 shares during the period. Signaturefd LLC increased its stake in shares of NAPCO Security Technologies by 225.9% in the third quarter. Signaturefd LLC now owns 1,310 shares of the industrial products company’s stock valued at $47,000 after buying an additional 908 shares during the period. Finally, Sterling Capital Management LLC increased its stake in shares of NAPCO Security Technologies by 844.7% in the third quarter. Sterling Capital Management LLC now owns 1,162 shares of the industrial products company’s stock valued at $41,000 after buying an additional 1,039 shares during the period. 85.07% of the stock is currently owned by institutional investors.

Trending Headlines about NAPCO Security Technologies

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

• Positive Sentiment: Recurring revenue continued to grow. Service revenue increased 11.5%, reached an approximately $106 million run rate, and carried margins above 90%. Management said this mix shift supported overall gross-margin performance despite weaker equipment sales. Napco Recurring Revenue Growth Offsets Softer Equipment Sales in Fiscal Q1
• Positive Sentiment: Needham maintained a Buy rating while lowering its price target from $49 to $43. The revised target still implies substantial upside from the current share price, signaling that the analyst views the recurring-revenue model and long-term growth prospects favorably.
• Positive Sentiment: NAPCO declared a $0.17 quarterly dividend, equivalent to $0.68 annually and a yield of roughly 2.1%. The payout provides some shareholder support, although the ex-dividend date is December 14.
• Neutral Sentiment: Revenue reached a record-like $50.0 million, up 1.6% year over year, while management is targeting full-year equipment gross margins of 26%–27%. However, the outlook depends on a recovery in equipment demand and improved distributor ordering. NAPCO Security Technologies Reports Fiscal Q1 2027 Results
• Negative Sentiment: NAPCO missed first-quarter expectations. Adjusted EPS was $0.34 versus the $0.38 consensus, and revenue was $49.98 million versus approximately $52.05 million expected. EPS was flat year over year, increasing concern about near-term growth. NAPCO Q1 Earnings Flash
• Negative Sentiment: Equipment sales declined 7.3% as distributor ordering softened. Excluding a litigation-related credit, operating income fell about 4%, highlighting that recurring-revenue gains have not yet fully offset pressure in the hardware business. Napco Security Equipment Sales Fall 7.3 Percent

NAPCO Security Technologies Company Profile

NAPCO Security Technologies, Inc develops, manufactures and sells electronic security products and solutions for commercial, institutional, industrial and residential applications. Its offerings include intrusion alarm systems, access control systems, fire alarm products, locking systems and related communications technologies.

The company markets products under brands that include NAPCO, StarLink, Alarm Lock, Continental Instruments and Firewolf. Its solutions are designed to support security dealers, alarm monitoring providers, systems integrators and other professional-channel customers, including applications in schools, healthcare facilities, businesses and government buildings.

Founded in 1969, NAPCO is headquartered in Amityville, New York.