Richard Soloway, who serves as chief executive officer, chairman of the board and secretary of NAPCO Security Technologies (NASDAQ: NSSC), sold 150,000 shares of the company's common stock on February 5, 2026. The block of shares generated about $6.4 million in proceeds, executed at a weighted average price of $42.74 per share, with individual trades ranging from $42.20 to $43.48.
After completing the sale, Soloway retains direct ownership of 1,256,010 shares of NAPCO Security Technologies. The company carries a market value of $1.56 billion and is trading at a price-to-earnings ratio of 32.7. Analysis from InvestingPro indicates that this multiple is high when measured against near-term earnings growth expectations, and its Fair Value assessment suggests the stock appears overvalued even though the company posts a strong financial health score.
Soloway also holds outstanding stock option grants. One set allows him to purchase 100,000 shares at an exercise price of $22.495; those options become exercisable cumulatively at a rate of 20% per year beginning October 19, 2021. Another grant covers 10,000 shares at an exercise price of $26.94, exercisable cumulatively at 20% per year starting August 25, 2022.
On balance-sheet metrics, NAPCO is characterized by more cash than debt, and its liquid assets exceed its short-term obligations, according to the information provided.
Earnings and analyst reaction
NAPCO Security reported fiscal second-quarter 2026 results that outpaced analyst expectations. The company posted earnings per share of $0.38 versus the consensus forecast of $0.32, representing an 18.75% surprise to the upside. Revenue for the quarter was $48.17 million, slightly above the anticipated $47.8 million.
Following the earnings release, Needham raised its price target on NAPCO Security to $49, citing the company’s strong fiscal second-quarter performance, which included a 12.2% year-over-year increase in revenue and a 36% increase in earnings per share. DA Davidson reiterated a Buy rating and assigned a price target of $50, pointing to solid results in equipment sales and recurring service revenue gross margins.
DA Davidson noted that overall revenue modestly exceeded its forecasts and that adjusted EBITDA was $1.3 million, or 9%, higher than expected. These analyst responses reflect an improved near-term outlook tied to the company’s recent operating performance.
Context and considerations
- Soloway’s sale of 150,000 shares generated approximately $6.4 million at a weighted average price of $42.74, with trades between $42.20 and $43.48.
- The firm’s market cap is $1.56 billion and its reported P/E ratio stands at 32.7, a level InvestingPro flags as high relative to near-term earnings growth.
- NAPCO’s most recent quarter beat both EPS and revenue expectations, prompting higher analyst price targets and a reaffirmed Buy rating from DA Davidson.
All figures and statements in this report are taken from the documented company disclosures and analyst comments provided alongside the transaction filing.