Mercury Systems Inc $MRCY Stake Increased by King Luther Capital Management Corp

Key Points

• King Luther Capital Management nearly doubled its position in Mercury Systems during the fourth quarter, boosting its stake by 94.4% to 202,643 shares valued at about $14.8 million.
• Several other institutional investors also increased holdings, and institutional ownership remains very high at 95.99% of the company’s stock.
• Mercury Systems reported better-than-expected quarterly results, with EPS of $0.27 versus $0.06 expected and revenue of $235.76 million, up 11.5% year over year.

King Luther Capital Management Corp increased its stake in Mercury Systems Inc (NASDAQ:MRCY - Free Report) by 94.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 202,643 shares of the technology company's stock after buying an additional 98,398 shares during the period. King Luther Capital Management Corp owned about 0.34% of Mercury Systems worth $14,795,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Penn Capital Management Company LLC increased its stake in shares of Mercury Systems by 4.2% in the fourth quarter. Penn Capital Management Company LLC now owns 191,883 shares of the technology company's stock worth $14,047,000 after buying an additional 7,729 shares during the last quarter. Swedbank AB increased its stake in shares of Mercury Systems by 722.1% in the fourth quarter. Swedbank AB now owns 38,349 shares of the technology company's stock worth $2,800,000 after buying an additional 33,684 shares during the last quarter. Legato Capital Management LLC increased its stake in Mercury Systems by 71.9% during the fourth quarter. Legato Capital Management LLC now owns 41,396 shares of the technology company's stock valued at $3,022,000 after purchasing an additional 17,311 shares during the last quarter. Global Retirement Partners LLC bought a new stake in Mercury Systems during the fourth quarter valued at $203,000. Finally, Leonteq Securities AG bought a new stake in Mercury Systems during the fourth quarter valued at $35,000. Institutional investors own 95.99% of the company's stock.

Insider Activity at Mercury Systems

In other news, Director Jana Partners Management, Lp sold 182,510 shares of the business'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 of the company's stock, valued at approximately $412,330,718.25. The trade was a 4.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP David E. Farnsworth sold 3,625 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $84.87, for a total transaction of $307,653.75. Following the transaction, the executive vice president directly owned 157,701 shares of the company's stock, valued at approximately $13,384,083.87. This trade represents a 2.25% 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 quarter, insiders have sold 473,932 shares of company stock valued at $43,453,119. Company insiders own 1.40% of the company's stock.

Analyst Ratings Changes

Several analysts have weighed in on MRCY shares. The Goldman Sachs Group boosted their target price on shares of Mercury Systems from $60.00 to $68.00 and gave the company a "sell" rating in a research note on Monday, May 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Mercury Systems in a research note on Tuesday, April 21st. Royal Bank Of Canada reiterated an "outperform" rating and set a $105.00 target price on shares of Mercury Systems in a research note on Wednesday, February 4th. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a research note on Friday, May 1st. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $95.00 target price on shares of Mercury Systems in a research note on Sunday, May 10th. Two research 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 company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.89.

Mercury Systems Stock Down 2.2%

MRCY stock opened at $97.11 on Thursday. Mercury Systems Inc has a 1-year low of $47.53 and a 1-year high of $103.84. The firm has a market cap of $5.83 billion, a price-to-earnings ratio of -404.63 and a beta of 0.83. 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 firm has a fifty day moving average price of $83.52 and a two-hundred day moving average price of $82.34.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.21. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The company had revenue of $235.76 million during the quarter, compared to the consensus estimate of $208.56 million. During the same quarter in the previous year, the company posted $0.06 earnings per share. The company's revenue for the quarter was up 11.5% compared to the same quarter last year. Research analysts predict that Mercury Systems Inc will post 0.18 EPS for the current year.

About Mercury Systems

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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