Legato Capital Management LLC Acquires 17,311 Shares of Mercury Systems Inc $MRCY

Key Points

• Legato Capital Management increased its stake in Mercury Systems by 71.9% in the fourth quarter, buying 17,311 additional shares and bringing its total holding to 41,396 shares worth about $3.0 million.
• Insider selling has been significant, with directors Howard L. Lance and Jana Partners Management among those selling shares; insiders sold 469,514 shares worth about $43 million over the last 90 days.
• Mercury Systems posted strong quarterly results, reporting adjusted EPS of $0.27 versus $0.06 expected and revenue of $235.76 million, up 11.5% year over year, even as analysts remain mixed with an average rating of “Moderate Buy.”

Legato Capital Management LLC lifted its holdings in Mercury Systems Inc (NASDAQ:MRCY - Free Report) by 71.9% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 41,396 shares of the technology company's stock after purchasing an additional 17,311 shares during the quarter. Legato Capital Management LLC owned 0.07% of Mercury Systems worth $3,022,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Leonteq Securities AG bought a new stake in shares of Mercury Systems in the fourth quarter worth $35,000. AlphaQuest LLC lifted its position in shares of Mercury Systems by 41.9% in the third quarter. AlphaQuest LLC now owns 569 shares of the technology company's stock worth $44,000 after purchasing an additional 168 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock worth $32,000 after purchasing an additional 208 shares in the last quarter. Federated Hermes Inc. bought a new stake in shares of Mercury Systems in the second quarter worth $43,000. Finally, Signaturefd LLC lifted its position in shares of Mercury Systems by 15.4% in the fourth quarter. Signaturefd LLC now owns 804 shares of the technology company's stock worth $59,000 after purchasing an additional 107 shares in the last quarter. Institutional investors own 95.99% of the company's stock.

Insider Buying and Selling at Mercury Systems

In other Mercury Systems news, Director Howard L. Lance sold 4,832 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $88.98, for a total value of $429,951.36. Following the transaction, the director directly owned 27,272 shares in the company, valued at $2,426,662.56. The trade was a 15.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jana Partners Management, Lp sold 182,510 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $94.05, for a total transaction of $17,165,065.50. Following the completion of the transaction, the director owned 4,384,165 shares in the company, valued at approximately $412,330,718.25. This represents a 4.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 469,514 shares of company stock valued at $42,960,291 in the last 90 days. Company insiders own 1.40% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on MRCY. Weiss Ratings reissued a "sell (d-)" rating on shares of Mercury Systems in a research report on Tuesday, April 21st. Royal Bank Of Canada reissued an "outperform" rating and issued a $105.00 price objective on shares of Mercury Systems in a research report on Wednesday, February 4th. Canaccord Genuity Group boosted their price objective on shares of Mercury Systems from $102.00 to $106.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Truist Financial raised shares of Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. Finally, The Goldman Sachs Group boosted their target price on shares of Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a report on Monday, May 11th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $89.89.

Mercury Systems Price Performance

Shares of MRCY opened at $98.55 on Friday. The company has a market cap of $5.92 billion, a price-to-earnings ratio of -410.63 and a beta of 0.83. Mercury Systems Inc has a 1-year low of $45.88 and a 1-year high of $103.84. The company's fifty day simple moving average is $82.43 and its 200 day simple moving average is $81.85. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.21. The business had revenue of $235.76 million for the quarter, compared to the consensus estimate of $208.56 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The firm's revenue for the quarter was up 11.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.06 earnings per share. On average, research analysts forecast that Mercury Systems Inc will post 0.18 earnings per share for the current fiscal year.

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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