Mercury Systems (NASDAQ:MRCY) Stock Rating Raised to Overweight at JPMorgan Chase & Co.

Key Points

• JPMorgan upgraded Mercury Systems to Overweight from Neutral and set a $102 price target, implying 22.04% upside from the prior close.
• Analyst views are mixed but lean positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $108, with 7 Buy, 3 Hold, and 2 Sell ratings.
• Mercury beat quarterly earnings and revenue estimates: EPS was $0.52 versus roughly $0.30 expected, while revenue rose 12.4% year over year to $253.2 million. The article also reports that the company raised its fiscal 2027 outlook.

Mercury Systems (NASDAQ:MRCY - Get Free Report) was upgraded by stock analysts at JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a report released on Wednesday, Marketbeat.com reports. The firm presently has a $102.00 target price on the technology company's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 22.04% from the stock's previous close.

MRCY has been the subject of a number of other research reports. Truist Financial increased their price objective on shares of Mercury Systems from $109.00 to $120.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. Deutsche Bank Aktiengesellschaft lowered Mercury Systems to a "hold" rating in a research report on Wednesday, August 12th. Piper Sandler decreased their price target on Mercury Systems from $131.00 to $107.00 and set an "overweight" rating on the stock in a research note on Friday, October 23rd. Guggenheim initiated coverage on Mercury Systems in a research report on Monday, September 14th. They set a "buy" rating and a $115.00 price target for the company. Finally, Robert W. Baird lifted their price objective on Mercury Systems from $120.00 to $130.00 and gave the company an "outperform" rating in a research note on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Mercury Systems has an average rating of "Moderate Buy" and a consensus price target of $108.00.

Mercury Systems Trading Up 5.0%

NASDAQ MRCY opened at $83.58 on Wednesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 1.85. The stock has a market capitalization of $5.09 billion, a P/E ratio of -167.16 and a beta of 0.98. The firm's 50-day moving average is $80.11 and its two-hundred day moving average is $90.99. Mercury Systems has a 12 month low of $64.37 and a 12 month high of $128.45.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings results on Tuesday, November 10th. The technology company reported $0.52 earnings per share for the quarter, beating analysts' consensus estimates of $0.30 by $0.22. The business 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 3.02% and a positive return on equity of 1.29%. The business's revenue for the quarter was up 12.4% on a year-over-year basis. During the same period last year, the business earned $0.26 earnings per share. On average, sell-side analysts anticipate that Mercury Systems will post 0.91 earnings per share for the current year.

Insider Activity at Mercury Systems

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

Institutional Trading of Mercury Systems

Large investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Mercury Systems in the second quarter valued at $1,146,342,000. Deutsche Bank AG purchased a new stake in Mercury Systems during the 2nd quarter worth about $17,454,000. Rice Hall James & Associates LLC acquired a new stake in Mercury Systems in the 2nd quarter valued at about $4,866,000. Manatuck Hill Partners LLC acquired a new stake in Mercury Systems in the 2nd quarter valued at about $2,251,000. Finally, American Capital Management Inc. acquired a new stake in Mercury Systems in the 2nd quarter valued at about $59,460,000. Hedge funds and other institutional investors own 95.99% of the company's stock.

Mercury Systems News Roundup

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Mercury reported earnings of $0.52 per share, above estimates of roughly $0.28–$0.30 and up from $0.26 a year earlier. Revenue rose 12.4% year over year to $253.2 million, topping the $245 million estimate. Mercury Systems Reports First Quarter Results
• Positive Sentiment: The company raised its fiscal 2027 outlook; a separate report highlighted stronger defense orders. Higher guidance and demand could help underpin expectations for future growth. Mercury Systems Q1 Swings To Profit; Raises FY27 Outlook Mercury Systems beats estimates as defense orders surge
• Negative Sentiment: Despite the earnings beat, headlines reported that MRCY shares fell and cited broader defense-sector concerns. This suggests sector sentiment may be offsetting some of the positive company-specific news. Defense Sector Concerns Weigh on Mercury Systems Shares Mercury Systems falls despite earnings beat

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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