American Capital Management Inc. Makes New $59.46 Million Investment in Mercury Systems Inc $MRCY

American Capital Management Inc. bought a new stake in Mercury Systems Inc (NASDAQ:MRCY - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 486,064 shares of the technology company's stock, valued at approximately $59,460,000. Mercury Systems makes up about 2.7% of American Capital Management Inc.'s investment portfolio, making the stock its 13th biggest holding. American Capital Management Inc. owned 0.81% of Mercury Systems at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Osaic Holdings Inc. boosted its stake in Mercury Systems by 53.2% during the second 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 period. Leonteq Securities AG bought a new stake in shares of Mercury Systems in the 4th quarter worth about $35,000. Hollencrest Capital Management purchased a new position in shares of Mercury Systems during the 4th quarter worth about $37,000. Federated Hermes Inc. purchased a new position in shares of Mercury Systems during the 2nd quarter worth about $43,000. Finally, Rockefeller Capital Management L.P. grew its holdings in Mercury Systems by 53.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company's stock valued at $48,000 after purchasing an additional 228 shares during the last quarter. Institutional investors own 95.99% of the company's stock.

Insiders Place Their Bets

In related news, CEO William L. Ballhaus sold 108,209 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $89.50, for a total transaction of $9,684,705.50. Following the completion of the transaction, the chief executive officer owned 299,836 shares of the company's stock, valued at $26,835,322. This trade represents a 26.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP David E. Farnsworth sold 8,155 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total value of $818,028.05. Following the completion of the transaction, the executive vice president directly owned 124,579 shares of the company's stock, valued at approximately $12,496,519.49. This trade represents a 6.14% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 286,020 shares of company stock valued at $27,381,750. 1.40% of the stock is owned by insiders.

Key Mercury Systems News

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

• Positive Sentiment: Mercury Systems reported quarterly revenue of $289.8 million, above the $266.1 million analyst consensus and up 6.1% year over year. The company’s aerospace and defense exposure, including secure computing and electronic-warfare systems, supports its longer-term growth outlook.
• Positive Sentiment: Piper Sandler recently reaffirmed an “overweight” rating and raised its price target to $131 from $126, indicating substantial upside potential from recent trading levels.
• Neutral Sentiment: Reported short interest was zero shares as of August 25, with a 0.0-day days-to-cover ratio. However, the filing also showed an invalid “NaN” percentage change, making the data an unreliable indicator of investor positioning.
• Neutral Sentiment: A law firm is soliciting Mercury Systems shareholders regarding alleged potential fiduciary-duty breaches. The announcement is not a confirmed regulatory finding or litigation outcome, but it introduces some headline risk. Shareholder solicitation
• Negative Sentiment: CEO William L. Ballhaus sold 173,209 shares in two transactions for approximately $15.7 million, reducing his direct holdings by roughly 20% and 27% in the respective filings. The scale and timing of the sales may be interpreted as a bearish signal, although insider transactions can also reflect diversification or personal financial planning. CEO SEC filings
• Negative Sentiment: EVPs Stuart Kupinsky and Steven Ratner also reported stock sales. Ratner has made several consecutive sales during the past week, adding to concerns about broad-based insider selling; Kupinsky’s transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value. Executive SEC filings
• Negative Sentiment: Quarterly earnings per share of $0.37 narrowly missed the $0.38 consensus and declined from $0.47 a year earlier. Mercury also posted a negative net margin, while analyst coverage remains mixed: the consensus rating is “Hold,” with an average target of $110.10.

Mercury Systems Trading Up 2.3%

MRCY opened at $89.76 on Thursday. The firm has a market cap of $5.40 billion, a price-to-earnings ratio of -179.52 and a beta of 0.95. 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 Inc has a 12 month low of $65.04 and a 12 month high of $128.45. The stock has a fifty day moving average price of $106.00 and a 200-day moving average price of $94.94.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). The business had revenue of $289.78 million for the quarter, compared to analysts' expectations 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 for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.47 EPS. As a group, equities research analysts anticipate that Mercury Systems Inc will post 0.76 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Zacks Research downgraded Mercury Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Piper Sandler restated an "overweight" rating and set a $131.00 price objective (up from $126.00) on shares of Mercury Systems in a report on Wednesday, August 19th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $115.00 price objective on shares of Mercury Systems in a research report on Friday, July 10th. The Goldman Sachs Group increased their target price on Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a research note on Monday, May 11th. Finally, Truist Financial lifted their target price on Mercury Systems from $109.00 to $120.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $110.10.

Mercury Systems 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.

Want to see what other hedge funds are holding MRCY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mercury Systems Inc (NASDAQ:MRCY - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source