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Associated Press
23-05-2025
- Business
- Associated Press
Napco (NSSC) Navigates Distributor Inventory Shifts Amidst Ongoing Investor Lawsuit– Hagens Berman
SAN FRANCISCO, May 23, 2025 (GLOBE NEWSWIRE) -- Security systems manufacturer Napco Security Technologies, Inc. (NASDAQ: NSSC), already facing a securities class action lawsuit stemming from earlier disclosures about its distribution network, reported mixed results for its third quarter of fiscal year 2025 on May 5. This new development underscores the challenges the company is currently navigating amidst ongoing legal scrutiny. Hagens Berman urges Napco investors who suffered substantial losses to submit your losses now. Napco's Decline in Sales While Napco reported quarterly results beating Wall Street's revenue expectations, it disclosed that its sales fell by 10.8% year on year to $43.96 million. According to President and Chief Financial Officer Kevin Buchel, the dip in equipment sales was primarily attributable to inventory adjustments made by some of Napco's key distributors. This explanation comes at a sensitive time for the company, which is currently grappling with a securities class action lawsuit filed earlier this year. Napco Security Technologies, Inc. (NSSC) Securities Class Action The lawsuit, styled Patel v. Napco Security Technologies, Inc., et al., No. 1:25-cv-02308 (E.D.N.Y.), seeks to represent investors who purchased Napco securities between February 5, 2024, and February 3, 2025. The legal action was initiated following a significant downturn in Napco's stock price after the company reported a sharp decline in its second-quarter fiscal 2025 earnings and margins on February 3rd. That disclosure, which also revealed issues within Napco's distribution network, triggered a precipitous 26% drop in the company's share value in a single trading day. The core of the investor lawsuit centers on the accuracy and propriety of Napco's statements concerning its sales and forecasting practices. The complaint alleges that Napco made false and misleading statements and failed to disclose crucial information regarding its ability to forecast demand for its hardware products and the potential impact of demand fluctuations on its ambitious margin projections for fiscal year 2026. Specifically, the lawsuit claims that despite assuring investors of robust growth in its hardware division and its ability to meet its fiscal 2026 targets through effective forecasting and execution, Napco allegedly failed to reveal that it lacked the capacity to accurately predict demand. This alleged oversight, according to the complaint, minimized the potential impact of demand volatility while the company continued to promote optimistic margin forecasts that hinged on consistently increasing sales volumes. The truth, as investors learned on February 3rd, was starkly different. Napco's second-quarter fiscal 2025 results revealed a substantial 25% drop in equipment sales compared to the prior year's second quarter, along with significant declines in gross margin and gross profit for equipment revenue. The company attributed this disappointing performance to 'reduced sales to two of our larger distributors,' with one distributor explicitly citing efforts to reduce its inventory levels. These disclosures sent Napco's shares into a tailspin, erasing $9.77 per share in value and prompting analysts to downgrade their ratings on the company. Hagens Berman's Investigation Securities litigation firm Hagens Berman is investigating potential securities fraud claims against Napco. Reed Kathrein, a partner at Hagens Berman, commented on the latest results, stating, 'The continued decline in year-over-year sales, even as the company cites distributor inventory adjustments, reinforces the concerns raised in the existing class action regarding Napco's ability to accurately forecast demand and manage its distribution network. These ongoing issues call in question the prior assurances the company allegedly made to investors.' If you invested in Napco and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Napco case and our investigation, read more» Whistleblowers: Persons with non-public information regarding Napco should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
Associated Press
23-05-2025
- Business
- Associated Press
Deadline Alert: Napco Security Technologies, Inc. (NSSC) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit
LOS ANGELES, May 23, 2025 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP reminds investors of the upcoming June 24, 2025 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Napco Security Technologies, Inc. ('Napco' or the 'Company') (NASDAQ: NSSC ) securities between February 5, 2024, to February 3, 2025, inclusive (the 'Class Period'). IF YOU SUFFERED A LOSS ON YOUR NAPCO INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS. What Happened? On February 3, 2025, Napco released its second quarter fiscal 2025 financial results, revealing a reduction in hardware sales due 'primarily … to reduced sales from 2 of the company's larger distributors.' The Company pulled back their long-term 45% EBITDA margin target, stating that it '[doesn't] know' if the target can be reached by the end of fiscal 2026. On this news, Napco's stock price fell $9.77, or 26.6%, to close at $26.93 per share on February 3, 2025, thereby injuring investors. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was simply not equipped to adequately forecast demand for its products or otherwise minimized the impact of potential demand fluctuations to continue to promote its lofty margin projections which relied upon continually increased sales volumes; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Napco securities during the Class Period, you may move the Court no later than June 24, 2025 to request appointment as lead plaintiff in this putative class action lawsuit. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles California 90067 Email: [email protected] Telephone: 310-201-9150, Toll-Free: 888-773-9224 Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. If you inquire by email, please include your mailing address, telephone number and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Contact Us: Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100 Los Angeles, CA 90067 Charles Linehan Email: [email protected] Telephone: 310-201-9150 Toll-Free: 888-773-9224 Visit our website at:
Yahoo
07-02-2025
- Business
- Yahoo
Napco Security price target lowered to $30 from $41 at Lake Street
Lake Street analyst Jaeson Schmidt lowered the firm's price target on Napco Security (NSSC) to $30 from $41 and keeps a Buy rating on the shares after the company reported revenue and EPS below estimates, with softer equipment revenue driving the top line miss. The firm says it understands the dynamics that led to the fiscal Q2 miss, but adds that it is worried that these headwinds are likely to persist throughout FY25, 'setting up this year to be a transition year from a growth perspective.' Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions. Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on NSSC: Napco Security downgraded to Hold from Buy at Craig-Hallum TD downgrades Napco Security on equipment negative surprise Napco Security downgraded to Hold from Buy at TD Cowen NAPCO Security's Q2 2025 Earnings: Mixed Results Napco Security Reports Mixed Q2 Fiscal 2025 Results Sign in to access your portfolio
