Fundsmith 13F: Cuts NSSC Stake by $52M

Institutional investment firm Fundsmith significantly cut back its holdings in Napco Security Technologies, Inc. (NASDAQ: NSSC) during the latest reporting period. According to the investment manager's most recent Form 13F filing submitted to the Securities and Exchange Commission, the fund offloaded 1,396,261 shares of the security equipment manufacturer. This transaction represents a 78.4% reduction in the fund's overall position, leaving it with a remaining balance of 383,596 shares. The value of this remaining stake was recorded at $14,277,444 at the close of the quarter.

Sizing Up the Portfolio Adjustment

Before this major divestment, Fundsmith held a much larger stake of 1,779,857 shares in the Amityville, New York-based technology firm. The heavy selling activity brought the fund's total exposure down to a fraction of its former size, with the cost basis for the position noted at $35.90 per share. Investors should keep in mind that 13F filings are backward-looking documents. They show a snapshot of portfolio holdings as of the final day of the reporting quarter, meaning Fundsmith may have made further changes to its position in the time since the filing was prepared.

This move matches a broader trend of portfolio reduction for Fundsmith. During the same filing cycle, the firm completely exited its position in Graco Inc. by selling 579,016 shares, and it slashed its stake in Doximity by 58%. It also trimmed its position in Sabre Corporation by 58%, selling off 12.5 million shares. These actions suggest a systematic reallocation of capital away from mid-cap industrial and technology names.

How Napco Security Stock Has Moved

Shares of Napco Security closed at $37.22 on Saturday. The stock has experienced a volatile year, trading between a 52-week low of $33.91 and a 52-week high of $51.77. The current market price places the stock just above its 50-day moving average of $37.01, though it still lags behind its longer-term 200-day moving average of $39.89. The company has a total market capitalization of $1.28 billion and trades at a price-to-earnings ratio of 29.85, which drops to a forward P/E of 19.84 based on future earnings expectations.

Inside the Financials

Napco Security reported $202.32 million in annual revenue, achieving a year-over-year revenue growth rate of 10.0%. The company boasts strong profitability metrics, including a net profit margin of 21.27% and a return on equity of 23.93%. Napco Security also maintains a healthy balance sheet, showing a current ratio of 4.90 and a quick ratio of 4.09, which suggests it has plenty of short-term liquidity to cover its operational obligations. Shareholders are currently looking forward to the next quarterly earnings report, which is scheduled for November 2, 2026.

Dividend Program

The company distributes regular income to its shareholders through an annual dividend of $0.61 per share. At current stock prices, this translates to a dividend yield of 1.7%. The payout is supported by a conservative dividend payout ratio of 48.33%, indicating the company retains more than half of its earnings to reinvest in business growth and research and development.

Wall Street Analyst Coverage

Wall Street analysts maintain a highly positive outlook on the security software and hardware provider. On August 21, 2026, research firm Needham reiterated its Buy rating on Napco Security, keeping its individual price target steady at $49.00.

Among the six analysts who actively cover the company, the consensus is a Strong Buy. The average price target across all coverage sits at $50.67, with individual targets stretching from a low of $48.00 to a high of $55.00. This average target suggests analysts believe the stock has room to climb from its current trading level.

About Napco Security Technologies

Napco Security Technologies designs, manufactures, and sells electronic security systems. The company specializes in building-access control systems, commercial fire and intrusion alarms, video surveillance equipment, and specialized school security hardware. It sells these systems to independent distributors and professional security installers worldwide, serving commercial, residential, and institutional properties.

What's Ahead for NSSC

Market observers will be watching the company's upcoming November earnings release to see if Napco Security can sustain its double-digit revenue growth. Additionally, future institutional filings will reveal whether other major fund managers are stepping in to buy the shares that Fundsmith has chosen to release back into the market.