In a series of recent transactions, Paul Pepper, a director of Napco Security Technologies, Inc. (NASDAQ: ), traded shares of the company, according to a Form 4 filing with the Securities and Exchange Commission. On September 12, Pepper engaged in buying and selling activities that resulted in a net sale.
Pepper acquired 3,000 shares of Napco common stock at $26.94 per share, for a total of $80,820. At the same time, he disposed of 2,151 shares as part of an option exercise at $37.58 per share, for a total of $80,834. In addition, he sold 708 shares on the open market at prices between $37.10 and $37.14, with a weighted average selling price of $37.12, for a total of $26,280.
The director’s transactions reflect a combination of exercised options and stock sales, which reduced his direct ownership in the company. Following these transactions, Beeber’s direct holdings in Napco Security Technologies amounted to 2,681 shares. The filing did not indicate any indirect ownership.
Insider trading is often watched by investors for insights into executive confidence and company performance. Beeber transactions, which include stock acquisitions and disposals, may be of particular interest to those tracking insider activity as a potential indicator of a company’s future prospects.
Headquartered in Amityville, New York, Napco Security Technologies specializes in security products, including electronic locks, alarm systems, and building management products.
In other recent news, Nabco Security & Technology has been the subject of several developments. B. Riley revised its price target on Nabco Security to $32 from $45 while maintaining a neutral rating. The revision came in the wake of a report by Fauzi Panda, which raised concerns about potential accounting fraud and misrepresented inventory data at Nabco. The company responded by refuting the allegations and providing details about the hiring of its chief accounting officer from Baker Tilly.
Additionally, Nabco Security disclosed that it has approximately 580,000 shares remaining under its existing repurchase authorization, indicating potential share repurchases based on market conditions. On the financial side, Nabco reported a strong fourth fiscal quarter for 2024, marking its 15th consecutive quarter of record sales, with revenue of $50.3 million. This growth was largely driven by a significant increase in recurring revenue subscription service, which grew 27% in the fourth quarter, to an annualized run rate of $84 million.
However, despite these positive results, the company saw its radio business decline by 5% QoQ and 10% YoY. These are among the recent developments witnessed by Nabco Security Technologies.
InvestingPro Insights
Amidst the insider trading activity of Paul Pepper, the CEO of Napco Security Technologies, Inc. (NASDAQ:NSSC), it is worth looking at the company’s financial health and market performance for a broader perspective. One of InvestingPro’s key takeaways is that Napco is holding more cash than debt on its balance sheet, which could indicate a stable financial position that could reassure investors about the company’s ability to manage its finances and invest in future growth. Additionally, the company is trading at a low price-to-earnings ratio relative to its near-term earnings growth, suggesting an undervalued stock that could attract value investors.
According to real-time metrics provided by InvestingPro, Napco’s market cap is around $1.46 billion, with a price-to-earnings ratio of 29.03, which slightly adjusts to 28.38 when looking at the past twelve months as of Q4 2024. This valuation is supported by a price-to-earnings ratio of just 0.34 for the same period, suggesting that the company’s earnings growth may not be fully reflected in its current stock price. Furthermore, the strong revenue growth of 11.07% over the past twelve months and the impressive gross profit margin of 54.78% underscore the company’s ability to generate profits efficiently.
In terms of stock performance, Nabco has achieved a significant return over the past week, with a total price return of 9.64%. However, it is worth noting that the stock has been volatile, with its price falling by 31.71% over the past month and 25.41% over the past three months. Despite these short-term fluctuations, the company has achieved a high return of 65.58% over the past year, which could be of interest to long-term investors.
For those looking for more detailed analysis and additional InvestingPro tips, there are 14 more tips available for Napco Security Technologies on their InvestingPro platform, which can provide further insights into the company’s performance and outlook.
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