Napco Security Systems (NASDAQ:NSSC)

Napco Security Technologies Inc. (NSSC) is a company that produces high-end security systems.

They make intrusion alarms, fire alarms, video surveillance, access control and door-locking systems.

Napco primarily serves commercial customers and government agencies.

But its biggest and most important customers are schools.

The company makes two products that offer superior lock-down protection for schools: Alarm Lock and LocDown.

Alarm Lock is a keyless lock that grants access to a building or room with a pin and/or card.

Napco’s LocDown system locks multiple doors inside a building with one push of a button or swipe of a card.

And through its app, customers can send immediate emergency notifications and communicate with first responders.

So with these two systems, a school can totally control access to buildings and quickly call for help, if needed.

A whopping 100,000 grade schools and 10,000 colleges/universities are using Napco’s LocDown system.

And some of the country’s biggest companies and institutions use these products, too.

I’m talking about Intel, Miami International Airport, the FBI training facility, Walter Reed Hospital, and ESPN.

The list of new customers grows every day. And Napco’s business is booming.

Annual revenue has jumped each of the last six years.

And last quarter, sales increased 13% year-over-year to a record $25.1 million.

In fact, Napco has grown revenue for 19 consecutive quarters!

Better still…

Much of their revenue is recurring, they’ve got a steady stream of cash coming in to grow the business.

And their net income went up 71%!

Napco’s annual earnings per share is expected to grow 41% this year, and an additional 39% next year.

So the company’s strong business shows no signs of slowing down.

And boasting this kind of explosive growth, it’s no surprise that front traders are loading up on this stock.

32 institutions created new positions this past quarter, compared to only 4 sellers.

Lord, Abbett & Company took a new position, purchasing over 192,000 shares.

Allianz Asset Management also took a new position, buying 164,440 shares.

Arrowstreet Capital Limited Partnership added to their current position by purchasing 87,540 shares

And famous front trader Goldman Sachs just bought 64,000 shares.

I love this kind of stock. A small number of people are watching it, and almost everyone likes it. It's the kind of stock that will pop with just a bit more interest. Home security is definitely a baby-boomer play as well. Nearly half of the shares are held by insiders. It's not glamorous or dominant, but I love an underdog , especially a profitable one.