BlackRock Inc. Acquires New Shares in Mercury Systems Inc $MRCY

Key Points

• BlackRock acquired 9.37 million Mercury Systems shares in the second quarter, worth approximately $1.15 billion and representing a 15.61% stake. Institutional investors collectively own 95.99% of MRCY.
• Mercury Systems reported strong operating momentum, including record quarterly bookings of about $660 million, a $1.9 billion backlog and 6.1% year-over-year revenue growth to $289.8 million.
• Despite stronger revenue and bookings, adjusted EPS of $0.37 missed estimates and fell from $0.47 a year earlier. Analysts’ average rating remains “Hold,” with an average price target of $110.10, while recent insider sales were attributed to tax withholding on vested equity awards.

BlackRock Inc. acquired a new position in shares of Mercury Systems Inc (NASDAQ:MRCY - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 9,370,902 shares of the technology company's stock, valued at approximately $1,146,342,000. BlackRock Inc. owned approximately 15.61% of Mercury Systems at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also added to or reduced their stakes in MRCY. Osaic Holdings Inc. boosted its position 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 period. Leonteq Securities AG bought a new position in shares of Mercury Systems during the fourth quarter valued at $35,000. Hollencrest Capital Management bought a new position in shares of Mercury Systems during the fourth quarter valued at $37,000. Federated Hermes Inc. acquired a new position in shares of Mercury Systems during the second quarter worth $43,000. Finally, Rockefeller Capital Management L.P. lifted its holdings in shares of Mercury Systems by 53.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company's stock worth $48,000 after purchasing an additional 228 shares during the period. Institutional investors own 95.99% of the company's stock.

Trending Headlines about Mercury Systems

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

• Positive Sentiment: Mercury Systems reported record fourth-quarter bookings of approximately $660 million, up 93.1% year over year, with a 2.28 book-to-bill ratio. Backlog surpassed $1.9 billion, a 38.4% increase, providing stronger revenue visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Revenue increased 6.1% year over year to approximately $290 million, exceeding the roughly $266 million analyst estimate. RBC raised its target to $120, Piper Sandler lifted its target to $131 while maintaining an Overweight rating, and Baird also forecast substantial upside. Robert W. Baird Forecasts Strong Price Appreciation
• Neutral Sentiment: CEO William Ballhaus and several executives sold shares in transactions from August 17–20. The sales totaled several million dollars, but SEC filings said they were intended to cover tax withholding on vested equity awards. That reduces their value as a bearish signal, although no insider purchases were reported. Mercury Systems SEC Insider Trading Filing
• Negative Sentiment: Adjusted EPS was $0.37, narrowly missing the $0.38 consensus and falling from $0.47 a year earlier. GAAP EPS was $0.01, while adjusted EBITDA declined to $49 million from $51 million and free cash flow fell to $29 million from $34 million. The earnings shortfall appears to have outweighed the strong bookings and revenue figures. Mercury Systems Drops as EPS Miss Overshadows Record Bookings
• Negative Sentiment: Investors are also evaluating Mercury’s exposure to semiconductor-price volatility. Because many contracts are fixed-price, higher component costs could pressure margins before the company can adjust pricing or supply arrangements. Mercury Systems Fixed-Price Contract Risk

Analyst Ratings Changes

MRCY has been the subject of a number of recent research reports. Jefferies Financial Group restated a "hold" rating and issued a $115.00 price objective on shares of Mercury Systems in a report on Friday, July 10th. JPMorgan Chase & Co. lifted their target price on Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Canaccord Genuity Group upped their price target on Mercury Systems from $106.00 to $128.00 and gave the company a "buy" rating in a research report on Thursday. Robert W. Baird raised their price objective on Mercury Systems from $120.00 to $130.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $131.00 price objective (up from $126.00) on shares of Mercury Systems in a research note on Wednesday. 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 stock. According to MarketBeat, Mercury Systems has an average rating of "Hold" and an average price target of $110.10.

Mercury Systems Stock Performance

NASDAQ MRCY opened at $91.36 on Friday. The company has a market cap of $5.49 billion, a P/E ratio of -182.72 and a beta of 0.95. The company has a fifty day simple moving average of $107.54 and a 200 day simple moving average of $94.85. The company has a current ratio of 2.96, a quick ratio of 2.15 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.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The business had revenue of $289.78 million during the quarter, compared to the consensus estimate of $266.09 million. Mercury Systems had a negative net margin of 3.02% and a positive return on equity of 1.29%. The firm's quarterly revenue was up 6.1% on a year-over-year basis. During the same period last year, the business posted $0.47 earnings per share. Sell-side analysts predict that Mercury Systems Inc will post 0.77 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP David E. Farnsworth sold 6,612 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $97.67, for a total value of $645,794.04. Following the completion of the sale, the executive vice president directly owned 117,967 shares of the company's stock, valued at $11,521,836.89. This represents a 5.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William L. Ballhaus sold 22,010 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $97.67, for a total value of $2,149,716.70. Following the completion of the transaction, the chief executive officer owned 228,197 shares in the company, valued at $22,288,000.99. This represents a 8.80% decrease in their position. 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 120,705 shares of company stock worth $12,485,420. Company insiders own 1.40% of the company's stock.

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.

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