This Analyst Recently Issued Research Note On Napco Security Technologies Inc. (NSSC)

As of Friday close, Napco Security Technologies Inc.’s (NASDAQ:NSSC) stock was up $0.21, moving up 0.55 percent to $38.41. The average number of shares traded per day over the past five days has been 451,340 shares. 4 times new highs have been achieved over the past 5 days, with a $0.14 gain in that time frame. In the last twenty days, the average volume was 267,830, while in the previous 50 days, it was 328,688.

Since last month, NSSC stock rose 3.64%. Shares of the company fell to $35.26 on 08/04/23, the lowest level in the past month. A 52-week high of $41.25 was reached on 06/13/23 after having rallying from a 52-week low of $24.24. Since the beginning of this year, NSSC’s stock price has risen by 39.77% or $10.93, and marked a new high 13 times. However, the stock has declined by -6.88% since its 52-week high.

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NSSC stock investors should be aware that Napco Security Technologies Inc. (NSSC) stock had its last reported insider trading activity 185 days ago on Feb 15. SOLOWAY RICHARD, the President, CEO and Secretary of the company, disposed of 287,500 shares for $31.50 on Feb 15. It resulted in a $9,056,250 divestment by the insider. BUCHEL KEVIN S sold 12,500 shares at an average price of $31.50 on Feb 15. The insider now owns 99,829 shares following the transaction. On Feb 13, President, CEO and Secretary SOLOWAY RICHARD sold 2,012,500 shares at $31.50 apiece. The transaction was valued at $63,393,750.

Valuation Metrics

Right now, Napco Security Technologies Inc. (NSSC) has a P/E ratio of about 42.77. The stock’s beta is 1.09. Besides these, the trailing price-to-sales (P/S) ratio of 8.06, the price-to-book (PB) ratio of 10.05, and the price-to-cash flow ratio of 143.13 may also be considered.

The latest dividend of $0.08 per share was paid out, which is 28.0% more than last year’s $0.0625.

Financial Health

In the three months ended March 30, Napco Security Technologies Inc.’s quick ratio stood at 4.70, while its current ratio was 7.30, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 47.20% percent. In the year ended March 30, operating margins totaled 21.80%. Based on annual data, NSSC earned $59.16 million in gross profit and brought in $143.59 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 17.50%. Return on equity (ROE) for the past 12 months was 26.30%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. NSSC’s revenue rose 17.51% to $42.31 million during the quarter, while net income inched up to $43.53 million. While analysts expected Napco Security Technologies Inc. to report $0.19 quarterly earnings, the actual figure was $0.29 per share, beating the consensus estimate by 52.60%. During the quarter, the company generated $12.4 million in EBITDA. The liabilities of Napco Security Technologies Inc. were 24.59 million at the end of its most recent quarter ended March 30, and its total debt was $5.88 million. The value of shareholders’ equity is $36.77 million.

Technical Picture

This quick technical analysis looks at Napco Security Technologies Inc.’s (NSSC) price momentum. With a historical volatility rate of 19.88%, the RSI 9-day stood at 66.19% on 18 August.

With respect to its five-day moving average, the current Napco Security Technologies Inc. price is up by +0.37% percent or $0.14. At present, NSSC shares trade +5.32% above its 20-day simple moving average and +0.18% percent above its 100-day simple moving average. However, the stock is currently trading approximately +0.79% above its SMA50 and +35.15% above its SMA200.

Stochastic coefficient K was 84.45% and Stochastic coefficient D was 87.31%, while ATR was 1.27. Given the Stochastic reading of 84.00% for the 14-day period, the RSI (14) reading has been calculated as 62.06%. As of today, the MACD Oscillator reading stands at 0.61, while the 14-day reading stands at 1.05.

Analyst Ratings

Craig Hallum launched its rating on Napco Security Technologies Inc. (NASDAQ: NSSC) to a Buy in a note to investors on August 07, 2023. Napco Security Technologies Inc. (NSSC) has been rated Buy by analysts. According to 0 brokerage firms, NSSC is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Napco Security Technologies Inc. stock as buy, with 6 recommending it as overweight.

With a median target price of $40.00, the current consensus forecast for the stock is $38.00 – $50.00. Based on these forecasts, analysts predict Napco Security Technologies Inc. (NSSC) will achieve an average price target of $42.00.

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