Zacks Research Boosts Earnings Estimates for Mercury Systems

Key Points

• Zacks Research raised Mercury Systems’ Q1 2028 earnings estimate to $0.24 per share from $0.23, while maintaining a “Hold” rating; full-year earnings consensus is $0.89 per share.
• Analyst sentiment remains mixed but leans neutral, with a consensus “Hold” rating and an average price target of $110.10. RBC and Canaccord raised their targets to $120 and $128, respectively.
• Mercury Systems recently missed quarterly EPS estimates by one cent but exceeded revenue expectations, reporting $289.78 million in revenue, up 6.1% year over year. Insiders sold $41.4 million of stock over the past quarter, while institutional investors own 95.99% of shares.

Mercury Systems Inc (NASDAQ:MRCY - Free Report) - Investment analysts at Zacks Research lifted their Q1 2028 earnings per share estimates for shares of Mercury Systems in a research report issued on Monday, September 7th. Zacks Research analyst Team now expects that the technology company will earn $0.24 per share for the quarter, up from their previous estimate of $0.23. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Mercury Systems' current full-year earnings is $0.89 per share.

Other equities analysts also recently issued research reports about the stock. Royal Bank Of Canada boosted their price target on shares of Mercury Systems from $105.00 to $120.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 19th. Canaccord Genuity Group lifted their target price on Mercury Systems from $106.00 to $128.00 and gave the company a "buy" rating in a report on Thursday, August 20th. JPMorgan Chase & Co. boosted their target price on Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Wall Street Zen downgraded Mercury Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $115.00 price target on shares of Mercury Systems in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Mercury Systems presently has a consensus rating of "Hold" and an average target price of $110.10.

Mercury Systems Price Performance

Mercury Systems stock opened at $83.46 on Wednesday. The company has a quick ratio of 1.85, a current ratio of 2.96 and a debt-to-equity ratio of 0.29. Mercury Systems has a 52-week low of $65.04 and a 52-week high of $128.45. The firm has a market cap of $5.02 billion, a PE ratio of -166.92 and a beta of 0.98. The company's 50 day moving average is $101.24 and its two-hundred day moving average is $95.06.

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

Institutional Investors Weigh In On Mercury Systems

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Maryland State Retirement & Pension System lifted its position in Mercury Systems by 1.8% in the fourth quarter. Maryland State Retirement & Pension System now owns 7,714 shares of the technology company's stock valued at $563,000 after acquiring an additional 134 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Mercury Systems by 8.5% in the 2nd quarter. GAMMA Investing LLC now owns 1,984 shares of the technology company's stock valued at $243,000 after purchasing an additional 155 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Mercury Systems by 1.6% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 12,058 shares of the technology company's stock valued at $880,000 after purchasing an additional 187 shares during the period. Focus Partners Wealth boosted its position in shares of Mercury Systems by 3.0% in the 3rd quarter. Focus Partners Wealth now owns 6,929 shares of the technology company's stock valued at $536,000 after purchasing an additional 199 shares during the period. Finally, Osaic Holdings Inc. grew its stake in Mercury Systems by 53.2% during the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock worth $32,000 after buying an additional 208 shares during the last quarter. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Mercury Systems

In other news, EVP David E. Farnsworth sold 8,155 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction 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. The trade was a 6.14% decrease in their position. The sale 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 company's stock in a transaction 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 completion of the transaction, the chief executive officer owned 342,436 shares of the company's stock, valued at approximately $29,833,024.32. The trade was a 24.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 446,186 shares of company stock worth $41,432,610 over the last quarter. 1.40% of the stock is currently owned by insiders.

Mercury Systems Company Profile

Mercury Systems, Inc NASDAQ: MRCY is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company's products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury's offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

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