Mercury Systems (NASDAQ:MRCY) Price Target Raised to $129.00

Key Points

• Canaccord Genuity raised its price target on Mercury Systems to $129 from $128 and maintained a Buy rating, implying 46.04% upside from the prior close.
• Mercury reported quarterly EPS of $0.52, beating the $0.30 consensus estimate, while revenue of $253.15 million exceeded expectations and grew 12.4% year over year.
• Analyst views are mixed: the stock carries a MarketBeat consensus rating of “Moderate Buy” and an average price target of $108.10, below Canaccord’s new target.

Mercury Systems (NASDAQ:MRCY - Get Free Report) had its price objective hoisted by research analysts at Canaccord Genuity Group from $128.00 to $129.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the technology company's stock. Canaccord Genuity Group's price target suggests a potential upside of 46.04% from the company's previous close.

Several other research analysts have also recently weighed in on MRCY. JPMorgan Chase & Co. upgraded Mercury Systems from a "neutral" rating to an "overweight" rating and lowered their target price for the stock from $110.00 to $102.00 in a report on Wednesday. Wall Street Zen cut Mercury Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Robert W. Baird lifted their price objective on Mercury Systems from $120.00 to $130.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 19th. Guggenheim assumed coverage on Mercury Systems in a research report on Monday, September 14th. They set a "buy" rating and a $115.00 price objective on the stock. Finally, Oppenheimer assumed coverage on Mercury Systems in a research note on Thursday, October 22nd. They set an "outperform" rating and a $90.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $108.10.

Mercury Systems Stock Performance

MRCY opened at $88.33 on Thursday. The firm has a market capitalization of $5.38 billion, a PE ratio of -1,104.12 and a beta of 0.98. Mercury Systems has a twelve month low of $64.37 and a twelve month high of $128.45. The firm's 50-day moving average price is $80.22 and its 200 day moving average price is $90.94. The company has a current ratio of 2.96, a quick ratio of 1.85 and a debt-to-equity ratio of 0.29.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings data on Tuesday, November 10th. The technology company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.22. The company had revenue of $253.15 million during the quarter, compared to analysts' expectations of $245.00 million. Mercury Systems had a negative net margin of 0.40% and a positive return on equity of 2.55%. Mercury Systems's revenue was up 12.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.26 EPS. As a group, sell-side analysts expect that Mercury Systems will post 0.91 EPS for the current fiscal year.

Insider Buying and Selling

In other Mercury Systems news, EVP David E. Farnsworth sold 8,155 shares of Mercury Systems stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $100.31, for a total value of $818,028.05. Following the sale, the executive vice president owned 124,579 shares in the company, valued at $12,496,519.49. The trade was a 6.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William L. Ballhaus sold 111,076 shares of Mercury Systems stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $87.12, for a total value of $9,676,941.12. Following the completion of the sale, the chief executive officer owned 342,436 shares in the company, valued at $29,833,024.32. This represents a 24.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 452,186 shares of company stock worth $41,933,170 over the last quarter. 0.99% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Mercury Systems

A number of institutional investors have recently made changes to their positions in MRCY. BlackRock Inc. purchased a new position in shares of Mercury Systems during the 2nd quarter worth approximately $1,146,342,000. Wellington Management Group LLP raised its position in Mercury Systems by 2.6% in the second quarter. Wellington Management Group LLP now owns 775,502 shares of the technology company's stock valued at $94,867,000 after purchasing an additional 19,977 shares during the period. Bamco Inc. NY purchased a new stake in Mercury Systems in the second quarter valued at approximately $74,244,000. Segall Bryant & Hamill LLC lifted its stake in Mercury Systems by 46.9% during the first quarter. Segall Bryant & Hamill LLC now owns 934,824 shares of the technology company's stock worth $68,158,000 after purchasing an additional 298,298 shares in the last quarter. Finally, American Capital Management Inc. acquired a new position in Mercury Systems during the second quarter worth $59,460,000. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Mercury Systems

These are some of the MRCY headlines that stood out recently:

• Positive Sentiment: Orders and demand were strong: new bookings reached $370 million and backlog hit a record $2.1 billion, providing visibility into future work. RBC attributed the earnings beat and improved outlook in part to stronger gross margins. RBC on Mercury’s Q1 results
• Neutral Sentiment: Mercury’s fiscal 2027 revenue guidance is $1.1 billion, broadly in line with analyst expectations. The results coverage describes an improved outlook, but the revenue forecast itself does not substantially exceed consensus. Q1 results and FY27 outlook
• Negative Sentiment: Broader defense-sector concerns had weighed on the shares, and coverage noted the stock had fallen despite the earnings beat. Sector sentiment could temper the impact of Mercury’s company-specific results. Defense sector concerns weigh on Mercury Systems

About Mercury Systems

Mercury Systems, Inc. develops and supplies secure processing systems and subsystems for the aerospace and defense industries. Its products include embedded computing, signal processing, radio-frequency and microwave components, and other technologies used to process and manage critical data. The company's technologies support applications such as radar, electronic warfare, communications, avionics, and command-and-control systems. Mercury works with defense contractors and government customers, providing components and systems designed for use in demanding environments.

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