William Blair Investment Management LLC Buys Shares of 379,732 Mercury Systems Inc $MRCY

Key Points

• William Blair Investment Management acquired 379,732 Mercury Systems shares worth approximately $46.5 million, giving it a 0.63% stake. Institutional investors collectively own nearly 96% of the company.
• Mercury Systems reported 6.1% year-over-year revenue growth to $289.8 million and record bookings of about $660 million, but adjusted EPS of $0.37 narrowly missed estimates and declined from $0.47 a year earlier.
• Analysts raised several price targets, though the stock maintains a consensus “Hold” rating with a $110.10 target. Recent insider sales were largely attributed to tax withholding on vested equity awards, while fixed-price contracts pose a potential margin risk amid semiconductor-cost volatility.

William Blair Investment Management LLC purchased a new position in shares of Mercury Systems Inc (NASDAQ:MRCY - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 379,732 shares of the technology company's stock, valued at approximately $46,453,000. William Blair Investment Management LLC owned about 0.63% of Mercury Systems at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Mercury Systems in the second quarter valued at approximately $1,146,342,000. Invesco Ltd. boosted its position in Mercury Systems by 161.7% during the third quarter. Invesco Ltd. now owns 1,527,443 shares of the technology company's stock worth $118,224,000 after acquiring an additional 943,736 shares during the last quarter. State Street Corp grew its stake in Mercury Systems by 12.1% in the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company's stock worth $249,957,000 after acquiring an additional 368,242 shares during the period. Bank of New York Mellon Corp purchased a new stake in Mercury Systems in the 2nd quarter worth approximately $38,438,000. Finally, Segall Bryant & Hamill LLC raised its holdings in Mercury Systems by 46.9% in the 1st quarter. Segall Bryant & Hamill LLC now owns 934,824 shares of the technology company's stock valued at $68,158,000 after acquiring an additional 298,298 shares during the last quarter. 95.99% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Mercury Systems

In related news, Director Howard L. Lance sold 9,250 shares of Mercury Systems stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $99.76, for a total value of $922,780.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Steven Ratner sold 2,187 shares of the company's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $100.31, for a total value of $219,377.97. Following the sale, the executive vice president owned 24,301 shares of the company's stock, valued at $2,437,633.31. This represents a 8.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 120,705 shares of company stock valued at $12,485,420. Corporate insiders own 1.40% of the company's stock.

Key Mercury Systems News

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

Mercury Systems Stock Performance

NASDAQ:MRCY opened at $91.36 on Friday. The company has a quick ratio of 2.15, a current ratio of 2.96 and a debt-to-equity ratio of 0.29. The company has a market cap of $5.49 billion, a P/E ratio of -182.72 and a beta of 0.95. Mercury Systems Inc has a fifty-two week low of $65.04 and a fifty-two week high of $128.45. The firm's 50 day moving average is $107.54 and its two-hundred day moving average is $94.85.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.01). The company had revenue of $289.78 million for the quarter, compared to analysts' expectations 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 in the prior year, the firm earned $0.47 earnings per share. Analysts expect that Mercury Systems Inc will post 0.77 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on MRCY. Truist Financial increased their price target on Mercury Systems from $109.00 to $120.00 and gave the stock a "buy" rating in a research note on Thursday. Robert W. Baird lifted their price objective on Mercury Systems from $120.00 to $130.00 and gave the company an "outperform" rating in a research report on Wednesday. Canaccord Genuity Group upped their target price on Mercury Systems from $106.00 to $128.00 and gave the company a "buy" rating in a research note on Thursday. The Goldman Sachs Group increased their target price on Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. raised their price target on Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $110.10.

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.

Want to see what other hedge funds are holding MRCY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mercury Systems Inc (NASDAQ:MRCY - Free Report).

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source