Bamco Inc. NY Buys New Position in Mercury Systems Inc $MRCY

Key Points

• Bamco Inc. NY acquired 606,919 shares of Mercury Systems worth approximately $74.2 million, representing about 1.01% of the company. Institutional investors collectively own 95.99% of MRCY.
• Mercury Systems reported quarterly revenue of $289.8 million, up 6.1% year over year and above analyst estimates, but EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier.
• Insider selling remains a concern: executives sold 286,020 shares worth roughly $27.4 million over the last quarter, including a sizable sale by CEO William Ballhaus. Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $110.10.

Bamco Inc. NY acquired a new stake in Mercury Systems Inc (NASDAQ:MRCY - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 606,919 shares of the technology company's stock, valued at approximately $74,244,000. Bamco Inc. NY owned about 1.01% of Mercury Systems as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in MRCY. Osaic Holdings Inc. grew its position in Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock valued at $32,000 after purchasing an additional 208 shares in the last quarter. Leonteq Securities AG bought a new position in shares of Mercury Systems in the 4th quarter valued at about $35,000. Hollencrest Capital Management bought a new position in shares of Mercury Systems in the 4th quarter valued at about $37,000. Federated Hermes Inc. acquired a new stake in shares of Mercury Systems in the second quarter valued at about $43,000. Finally, Rockefeller Capital Management L.P. increased its position in shares of Mercury Systems by 53.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company's stock valued at $48,000 after acquiring an additional 228 shares during the last quarter. Institutional investors own 95.99% of the company's stock.

Insider Transactions at Mercury Systems

In other Mercury Systems news, CEO William L. Ballhaus sold 108,209 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $89.50, for a total value of $9,684,705.50. Following the transaction, the chief executive officer directly owned 299,836 shares of the company's stock, valued at $26,835,322. This represents a 26.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP David E. Farnsworth sold 8,155 shares of the 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 transaction, 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 position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 286,020 shares of company stock worth $27,381,750. Company insiders own 1.40% of the company's stock.

Mercury Systems Stock Up 2.3%

MRCY opened at $89.76 on Thursday. The stock's fifty day simple moving average is $106.00 and its 200 day simple moving average is $94.94. Mercury Systems Inc has a 1-year low of $65.04 and a 1-year high of $128.45. The stock has a market cap of $5.40 billion, a PE 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 (NASDAQ:MRCY - Get Free Report) last released 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). Mercury Systems had a negative net margin of 3.02% and a positive return on equity of 1.29%. The company had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. During the same quarter in the prior year, the firm earned $0.47 earnings per share. Mercury Systems's revenue for the quarter was up 6.1% on a year-over-year basis. As a group, research analysts expect that Mercury Systems Inc will post 0.76 earnings per share for the current year.

Key Headlines Impacting Mercury Systems

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.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Royal Bank Of Canada raised their price target on Mercury Systems from $105.00 to $120.00 and gave the company an "outperform" rating in a research note on Wednesday, August 19th. Zacks Research cut Mercury Systems from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Piper Sandler reissued an "overweight" rating and issued a $131.00 price objective (up from $126.00) on shares of Mercury Systems in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft cut shares of Mercury Systems to a "hold" rating in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Mercury Systems currently has a consensus rating of "Hold" and an average price target of $110.10.

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.

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