NAPCO Security Technologies Inc

In Stage 4 decline, NSSC remains in a clear downtrend with lower highs and lower lows. Price is below declining 9, 21 EMAs and a turning-down 50 SMA, where rallies into this confluence continue to be rejected. Absence of active patterns signifies no countertrend support, and bearish momentum is sustained on each bounce. Execution favors the short side on rejections at EMA/SMA resistance.

• ↑Net revenue rose 11.8% YoY to $49.2M; recurring service revenue grew 15% to $24.9M (51% of sales).
• ↑Gross margins improved to ~60%; adjusted EBITDA climbed over 20% to $15.8M.
• ↓High P/E of 36.9x vs. peers suggests overvaluation risk if growth decelerates.