Mercury Systems Inc $MRCY Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America increased its Mercury Systems stake by 19.5% in the first quarter to 294,918 shares valued at approximately $21.5 million. Institutional investors collectively own 95.99% of the company.
• Mercury reported record quarterly revenue of about $289.8 million, up 6.1% year over year and above estimates, while EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier. Record bookings and backlog improved future-revenue visibility, but lower GAAP earnings, EBITDA and free cash flow raised margin concerns.
• The stock was trading around $105 after falling 7.4%, while analyst sentiment remained mixed: Mercury holds a consensus “Hold” rating with an average price target of $102.

Bank of America Corp DE raised its stake in shares of Mercury Systems Inc (NASDAQ:MRCY - Free Report) by 19.5% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 294,918 shares of the technology company's stock after acquiring an additional 48,181 shares during the period. Bank of America Corp DE owned approximately 0.49% of Mercury Systems worth $21,502,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in MRCY. Louisiana State Employees Retirement System purchased a new stake in shares of Mercury Systems in the 1st quarter worth about $1,706,000. One Capital Management LLC increased its stake in shares of Mercury Systems by 43.6% during the 4th quarter. One Capital Management LLC now owns 29,300 shares of the technology company's stock valued at $2,139,000 after acquiring an additional 8,893 shares during the last quarter. Bessemer Group Inc. raised its stake in Mercury Systems by 45.6% during the fourth quarter. Bessemer Group Inc. now owns 399,496 shares of the technology company's stock worth $29,168,000 after purchasing an additional 125,194 shares during the period. Swedbank AB boosted its holdings in Mercury Systems by 722.1% in the fourth quarter. Swedbank AB now owns 38,349 shares of the technology company's stock valued at $2,800,000 after acquiring an additional 33,684 shares during the last quarter. Finally, UBS Group AG grew its holdings in shares of Mercury Systems by 4.5% during the 4th quarter. UBS Group AG now owns 251,229 shares of the technology company's stock worth $18,342,000 after purchasing an additional 10,880 shares during the period. 95.99% of the stock is owned by hedge funds and other institutional investors.

Mercury Systems Trading Down 7.4%

Mercury Systems stock opened at $105.00 on Wednesday. Mercury Systems Inc has a one year low of $62.78 and a one year high of $128.45. The company has a market capitalization of $6.30 billion, a price-to-earnings ratio of -437.50 and a beta of 0.95. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.19 and a quick ratio of 2.15. The company's fifty day moving average price is $108.73 and its two-hundred day moving average price is $94.85.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings results on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The business had revenue of $289.78 million for the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The firm's quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.47 earnings per share. On average, analysts forecast that Mercury Systems Inc will post 0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Howard L. Lance sold 9,250 shares of Mercury Systems stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $99.76, for a total value of $922,780.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 1.40% of the stock is owned by corporate insiders.

Key Mercury Systems News

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

• Positive Sentiment: Mercury reported record fourth-quarter bookings of approximately $660 million, up 93.1% year over year, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, an increase of roughly 38%, providing stronger future-revenue visibility. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue reached a record approximately $290 million, up 6.1% year over year and above analysts’ expectations of about $266 million. Fiscal-year revenue also increased to $984 million from $912 million. Mercury Systems Q4 Revenue Reaches $290 Million as Bookings Hit Record $660 Million
• Neutral Sentiment: Adjusted fourth-quarter EPS was $0.37, described by one report as meeting consensus and by another as slightly below the $0.38 estimate. The result was below $0.47 a year earlier, making the earnings signal mixed. Mercury Systems Meets Q4 Earnings Estimates
• Negative Sentiment: GAAP earnings fell to approximately $0.01 per share from $0.27 a year earlier. Adjusted EBITDA declined to $49 million from $51 million, while free cash flow fell to $29 million from $34 million, raising concerns about margins and cash conversion. Mercury Systems Slides After Earnings Despite Record Bookings and Backlog
• Negative Sentiment: Investors may also be weighing a fiscal-year GAAP net loss of $29.7 million and lower operating and free cash flow compared with fiscal 2025. In addition, reported open-market insider activity over the past six months consisted of sales and no purchases, adding a potential sentiment headwind.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on MRCY shares. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a research note on Friday, May 1st. JPMorgan Chase & Co. boosted their price target on Mercury Systems from $99.00 to $101.00 and gave the company a "neutral" rating in a report on Monday, July 13th. Wall Street Zen lowered Mercury Systems from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. The Goldman Sachs Group raised their target price on Mercury Systems from $60.00 to $68.00 and gave the company a "sell" rating in a research report on Monday, May 11th. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Mercury Systems to a "hold" rating in a research note on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Mercury Systems currently has a consensus rating of "Hold" and an average price target of $102.00.

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.

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.

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