Mercury Systems Inc (NASDAQ:MRCY) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Mercury Systems “Moderate Buy”: Six analysts recommend buying, two strongly recommend buying, four advise holding, and two rate it a sell. The average 12-month price target is $107.18, versus a recent price of $77.54.
• Insiders have been selling shares: Executives sold 452,186 shares worth approximately $41.9 million over the past 90 days, including a $9.7 million sale by CEO William L. Ballhaus. Insiders own 0.99% of the company, while institutional investors own 95.99%.
• Quarterly revenue exceeded expectations, but profitability weakened: Mercury reported $289.78 million in revenue, up 6.1% year over year and above estimates, but EPS of $0.37 missed consensus by $0.01. The company posted a negative net margin and trades near the lower end of its $65.04–$128.45 one-year range.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) has received an average recommendation of "Moderate Buy" from the fourteen research firms that are presently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $107.18.

MRCY has been the topic of a number of research reports. Weiss Ratings downgraded shares of Mercury Systems from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, September 28th. Piper Sandler reduced their target price on shares of Mercury Systems from $131.00 to $107.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Zacks Research cut shares of Mercury Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Wall Street Zen downgraded Mercury Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Finally, Robert W. Baird increased their price target on Mercury Systems from $120.00 to $130.00 and gave the company an "outperform" rating in a report on Wednesday, August 19th.

Insider Transactions at Mercury Systems

In other news, EVP David E. Farnsworth sold 8,155 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $100.31, for a total value of $818,028.05. Following the completion of 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 the firm's stock in a transaction dated 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 sale, the chief executive officer owned 342,436 shares in the company, valued at approximately $29,833,024.32. The trade was a 24.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 452,186 shares of company stock worth $41,933,170. 0.99% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Mercury Systems

A number of institutional investors and hedge funds have recently bought and sold shares of MRCY. BlackRock Inc. acquired a new stake in shares of Mercury Systems during the second quarter worth approximately $1,146,342,000. Bamco Inc. NY bought a new stake in shares of Mercury Systems in the second quarter worth $74,244,000. American Capital Management Inc. acquired a new stake in Mercury Systems in the second quarter valued at $59,460,000. William Blair Investment Management LLC acquired a new stake in Mercury Systems in the second quarter valued at $46,453,000. Finally, Bank of New York Mellon Corp acquired a new stake in Mercury Systems in the second quarter valued at $38,438,000. Hedge funds and other institutional investors own 95.99% of the company's stock.

Mercury Systems Stock Performance

NASDAQ MRCY opened at $77.54 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 1.85. Mercury Systems has a 1-year low of $65.04 and a 1-year high of $128.45. The firm has a market capitalization of $4.72 billion, a P/E ratio of -155.08 and a beta of 0.97. The business's 50-day simple moving average is $81.97 and its 200-day simple moving average is $91.83.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its earnings results on Tuesday, August 18th. The technology company reported $0.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%. The business had revenue of $289.78 million for the quarter, compared to analyst estimates of $266.09 million. During the same period last year, the company posted $0.47 EPS. The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. Equities analysts predict that Mercury Systems will post 0.91 EPS for the current year.

Mercury Systems Company Profile

Mercury Systems, Inc is an aerospace and defense technology company that develops and manufactures mission-critical computing and electronic systems. Its products are designed for use in aircraft, unmanned systems, naval vessels, ground vehicles, radar platforms and other defense applications.

The company provides embedded computing solutions, including high-performance processors, ruggedized computers, secure servers, data-storage systems and software. Its portfolio also includes radio-frequency and microwave components, electronic warfare systems, signal processing technologies and systems used for radar, communications, avionics and intelligence, surveillance and reconnaissance missions.

Founded in 1981 and headquartered in Andover, Massachusetts, Mercury Systems primarily serves the U.S.

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