It looks like my purchase price was in the same area as yours.
That $5.50 price target will be raised as we approach the next earnings announcement and once the numbers are released. This is going to be a good quarter, there is no debt, all profit goes straight to cash balance. My guess is that new price target will be moved up to something around $7.50 or $8.
I don't think now is the right time to sell - the news coming out is all good, and the company has definitely turned the corner. This is the time you want to be long - biggest gains are ahead.
However, outside of your reasons for considering to sell NLS, I've also listened to experts say that if you're sitting on gains, because of the tax changes coming in 2013, sell and take capital gains now - you can always buy back the very next day if you like since the 30 day wash rule only applies to losses.