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NSSCNAPCO Security Technologies, InHold6.1·$35.37-0.81%
HoldModerate Confidence
Investment thesis

NAPCO Security Technologies has achieved a perfect earnings beat streak of 4 consecutive quarters with an average surprise of 22%, a wide economic moat, and free cash flow at 131% of net income, establishing it as a high-quality compounder in the security technology space with meaningful analyst upside remaining.

Thesis pillars

  • Wide Moat High Quality CompounderStable
  • Analyst Upside 34pctImproving
  • Perfect Earnings Beat StreakStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

NAPCO Security Technologies, In (NSSC) Stock Analysis

Falling Knife setup · Temporary headwind edge

HoldGrowthQualityModerate Confidence

Industrials · Security & Protection Services

Hold if already holding. Not a fresh buy at $35.37, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.3%/30d (confirmed downtrend).

Napco Security Technologies, Inc. engages in the development, manufacturing, and sale of electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. The company's access control... Read more

$35.37+22.5% A.UpsideScore 6.1/10#5 of 10 Security & Protection Services
QualityF-score9 / 9FCF yield3.78%
IncomeYield1.68%Payout55.34%sustainable
Stop $33.52Target $43.79(analyst − 13%)A.R:R 3.6:1
Analyst target$50.33+42.3%6 analysts
$43.79our TP
$35.37price
$50.33mean
$53

Hold if already holding. Not a fresh buy at $35.37, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.3%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Maintain position. Not compelling to add more. Score 6.1/10, moderate confidence.

Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-26

Recent Developments — NAPCO Security Technologies, In

Material events (past 30 days)

  • 8K Jul 8, 2026 MEDIUM Item 5.02: . Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers** On July 8, 2026, the Board of Directors (the "Board") of NAPCO Security Technologies, Inc.

Generated 2026-07-26T08:02:04Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Aug 24, 202629d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
High-quality business
Positive insider activity
Risks
Negative momentum
Below 200-MA, MA slope -1.3%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)34.7
P/E (Fwd)22.1
Mkt Cap$1.3B
EV/EBITDA21.6
Profit Mgn18.7%
ROE21.7%
Rev Growth7.6%
Beta1.43
Dividend1.68%
Rating analysts12

Quality Signals

Piotroski F9/9MoatWideCompounder

Options Flow

P/C1.00neutral
IV62%elevated

Material Events(8-K, last 90d)

  • 2026-07-08Item 5.02MEDIUM
    . Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers** On July 8, 2026, the Board of Directors (the "Board") of NAPCO Security Technologies, Inc.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.8
Ma Position
1.0
Macd
2.2
Rsi
3.0
Obv
10.0
Capitulation risk (RSI 24, below 200MA)Volume accumulation (rising OBV)Below 200-MA, MA slope -1.3%/30d — confirmed downtrend
GatesMomentum 3.4<4.5Death cross (50MA < 200MA)Executive change: officer departure/appointmentA.R:R 3.6 ≥ 1.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 29d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
24 · Oversold
20D MA 50D MA 200D MADEATH CROSSSupport $34.20Resistance $39.24

Price Targets

$34
$44
A.Upside+22.5%
A.R:R3.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! momentum at 3.4 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-24 (29d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NSSC stock a buy right now?

Hold if already holding. Not a fresh buy at $35.37, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-MA, MA slope -1.3%/30d (confirmed downtrend). Chart setup: Death cross, below all MAs, RSI 24, MACD bearish. Maintain position. Not compelling to add more. Target $43.79 (+23.8%), stop $33.52 (−5.5%), A.R:R 3.6:1. Score 6.1/10, moderate confidence.

What is the NSSC stock price target?

Take-profit target: $43.79 (+22.5% upside). Target $43.79 (+23.8%), stop $33.52 (−5.5%), A.R:R 3.6:1. Stop-loss: $33.52.

What are the risks of investing in NSSC?

Negative momentum; Below 200-MA, MA slope -1.3%/30d (confirmed downtrend).

Is NSSC overvalued or undervalued?

NAPCO Security Technologies, In trades at a P/E of 34.7 (forward 22.1). TrendMatrix value score: 5.3/10. Verdict: Hold.

What do analysts say about NSSC?

12 analysts cover NSSC with a consensus score of 4.1/5. Average price target: $50.

What does NAPCO Security Technologies, In do?Napco Security Technologies, Inc. engages in the development, manufacturing, and sale of electronic security systems...

Napco Security Technologies, Inc. engages in the development, manufacturing, and sale of electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. The company's 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. Its alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. The company also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. It markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

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