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Have Napco Security Technologies, Inc. (NASDAQ:NSSC) Insiders Been Selling Their Stock? – Simply Wall St


Some Napco Security Technologies, Inc. (NASDAQ:NSSC) shareholders may be a little concerned to see that the Senior VP of Operations & Finance, Kevin Buchel, recently sold a substantial US$1.2m worth of stock at a price of US$30.26 per share. That’s a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

View our latest analysis for Napco Security Technologies

Napco Security Technologies Insider Transactions Over The Last Year

The Founder, Richard Soloway, made the biggest insider sale in the last 12 months. That single transaction was for US$55m worth of shares at a price of US$24.70 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$31.00. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 36% of Richard Soloway’s stake.

In the last year Napco Security Technologies insiders didn’t buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:NSSC Insider Trading Volume February 19th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Napco Security Technologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Napco Security Technologies insiders own 22% of the company, worth about US$126m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Napco Security Technologies Insiders?

Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Napco Security Technologies that deserve your attention before buying any shares.

But note: Napco Security Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.



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