The Manufacturers Life Insurance Company Acquires New Stake in Mercury Systems Inc $MRCY

Key Points

• The Manufacturers Life Insurance Company acquired 31,820 Mercury Systems shares worth approximately $3.9 million, joining other institutional investors; institutions now own 95.99% of the stock.
• Mercury Systems reported quarterly revenue of $289.78 million, ahead of estimates, but EPS of $0.37 missed expectations and net margin remained negative. The stock opened at $82.80, down significantly from its 50-day moving average of $103.97.
• Analyst sentiment is mixed, with a consensus “Hold” rating and a $110.10 price target. Meanwhile, insiders sold approximately $41.4 million of shares over the past quarter, including substantial sales by the CEO and an executive vice president.

The Manufacturers Life Insurance Company bought a new position in Mercury Systems Inc (NASDAQ:MRCY - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 31,820 shares of the technology company's stock, valued at approximately $3,893,000. The Manufacturers Life Insurance Company owned approximately 0.05% of Mercury Systems at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of MRCY. BlackRock Inc. purchased a new position in Mercury Systems in the second quarter worth about $1,146,342,000. Invesco Ltd. grew its holdings in shares of Mercury Systems by 161.7% during the third quarter. Invesco Ltd. now owns 1,527,443 shares of the technology company's stock valued at $118,224,000 after buying an additional 943,736 shares during the last quarter. William Blair Investment Management LLC purchased a new stake in shares of Mercury Systems during the second quarter valued at approximately $46,453,000. State Street Corp increased its position in shares of Mercury Systems by 12.1% during the fourth quarter. State Street Corp now owns 3,423,600 shares of the technology company's stock valued at $249,957,000 after acquiring an additional 368,242 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Mercury Systems during the second quarter valued at approximately $38,438,000. 95.99% of the stock is currently owned by institutional investors.

Mercury Systems Stock Down 5.2%

Shares of MRCY stock opened at $82.80 on Wednesday. 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 Inc has a 12 month low of $65.04 and a 12 month high of $128.45. The stock has a market cap of $4.98 billion, a P/E ratio of -165.60 and a beta of 0.98. The company has a 50 day simple moving average of $103.97 and a two-hundred day simple moving average of $95.06.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 earnings per share (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 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 company's revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.47 EPS. On average, research analysts expect that Mercury Systems Inc will post 0.88 earnings per share for the current year.

Insider Buying and Selling at Mercury Systems

In other Mercury Systems news, EVP David E. Farnsworth sold 8,155 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $100.31, for a total transaction of $818,028.05. Following the completion of the sale, the executive vice president owned 124,579 shares of the company's stock, valued at approximately $12,496,519.49. The trade was a 6.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William L. Ballhaus sold 111,076 shares of the company's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $87.12, for a total value of $9,676,941.12. Following the completion of the sale, the chief executive officer owned 342,436 shares of the company's stock, valued at approximately $29,833,024.32. The trade was a 24.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 446,186 shares of company stock worth $41,432,610 over the last quarter. 1.40% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Zacks Research cut Mercury Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. The Goldman Sachs Group lifted their target price on Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a report on Monday, May 11th. Truist Financial upped their price target on Mercury Systems from $109.00 to $120.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Piper Sandler reaffirmed an "overweight" rating and set a $131.00 price objective (up from $126.00) on shares of Mercury Systems in a research report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. lifted their price objective on 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 issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Mercury Systems currently has a consensus rating of "Hold" and a consensus price target of $110.10.

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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