Insider Selling: Mercury Systems (NASDAQ:MRCY) CAO Sells $54,969.88 in Stock

Key Points

• Mercury Systems CAO Douglas Munro sold 548 shares at an average price of $100.31, totaling $54,969.88. The sale covered tax withholding obligations tied to vested equity awards and reduced his direct ownership by 4.02% to 13,091 shares.
• Mercury reported quarterly revenue of $289.8 million, up 6.1% year over year and above estimates, but adjusted EPS of $0.37 narrowly missed consensus and fell from $0.47 a year earlier.
• The company posted strong forward indicators, including record quarterly bookings of approximately $660 million and backlog above $1.9 billion, although shares recently traded at $91.36 amid profitability and rising semiconductor-cost concerns.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) CAO Douglas Munro sold 548 shares of the firm's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $54,969.88. Following the transaction, the chief accounting officer directly owned 13,091 shares of the company's stock, valued at $1,313,158.21. The trade was a 4.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Douglas Munro also recently made the following trade(s):

• On Thursday, August 20th, Douglas Munro sold 109 shares of Mercury Systems stock. The shares were sold at an average price of $97.67, for a total value of $10,646.03.
• On Tuesday, August 18th, Douglas Munro sold 494 shares of Mercury Systems stock. The stock was sold at an average price of $111.36, for a total value of $55,011.84.
• On Monday, August 17th, Douglas Munro sold 404 shares of Mercury Systems stock. The shares were sold at an average price of $109.95, for a total transaction of $44,419.80.

Mercury Systems Stock Performance

Shares of MRCY traded down $2.87 during trading hours on Friday, reaching $91.36. 1,117,646 shares of the company's stock traded hands, compared to its average volume of 675,344. The business's fifty day simple moving average is $108.12 and its two-hundred day simple moving average is $94.88. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 2.15. Mercury Systems Inc has a twelve month low of $65.04 and a twelve month high of $128.45. The firm has a market capitalization of $5.49 billion, a price-to-earnings ratio of -182.72 and a beta of 0.95.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced 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 the consensus estimate of $266.09 million. Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.The firm's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.47 EPS. Analysts predict that Mercury Systems Inc will post 0.77 earnings per share for the current year.

Key Stories Impacting Mercury Systems

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% year over year, with a 2.28 book-to-bill ratio. Backlog surpassed $1.9 billion, rising 38.4% and improving longer-term revenue visibility. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Revenue increased 6.1% year over year to approximately $289.8 million, well above the roughly $266.1 million analyst estimate. RBC raised its price target to $120, while Piper Sandler lifted its target to $131 and reaffirmed an “Overweight” rating; Baird also forecast substantial appreciation. Royal Bank of Canada Mercury Systems Forecast
• Positive Sentiment: A strategic alliance with Palantir Technologies is intended to automate material planning and factory operations for U.S. military programs. Investors may view the partnership as a potential catalyst for higher production throughput and shorter delivery times. Mercury Systems and Palantir Partnership
• Neutral Sentiment: Multiple executives sold shares in transactions totaling roughly $4.7 million. The filings say the sales covered tax withholding on vested equity awards, limiting their value as a bearish signal, although no insider purchases were reported. Mercury Systems 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, adjusted EBITDA declined to $49 million, and free cash flow fell to $29 million, overshadowing the strong bookings and revenue figures. Why Mercury Systems Is Down
• Negative Sentiment: Mercury’s fixed-price contracts expose margins to volatility in advanced semiconductor costs. Rising component expenses could pressure profitability before the company can adjust pricing or supply arrangements. Mercury Systems Fixed-Price Contract Risk

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on MRCY shares. Royal Bank Of Canada raised their price target on shares of Mercury Systems from $105.00 to $120.00 and gave the company an "outperform" rating in a report on Wednesday. The Goldman Sachs Group increased 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. Weiss Ratings restated a "sell (d-)" rating on shares of Mercury Systems in a research note on Friday, July 17th. Wall Street Zen downgraded shares of Mercury Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Finally, JPMorgan Chase & Co. upped their target price on Mercury Systems from $99.00 to $101.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Mercury Systems presently has an average rating of "Hold" and an average price target of $110.10.

Institutional Trading of Mercury Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC bought a new stake in shares of Mercury Systems in the first quarter valued at approximately $755,000. Goldman Sachs Group Inc. increased its position in shares of Mercury Systems by 51.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 855,441 shares of the technology company's stock valued at $36,861,000 after purchasing an additional 290,989 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Mercury Systems by 13.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 159,617 shares of the technology company's stock worth $6,878,000 after purchasing an additional 18,916 shares during the period. Jane Street Group LLC grew its holdings in Mercury Systems by 161.3% in the first quarter. Jane Street Group LLC now owns 50,769 shares of the technology company's stock worth $2,188,000 after purchasing an additional 31,337 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in shares of Mercury Systems by 30.3% during the second quarter. JPMorgan Chase & Co. now owns 124,973 shares of the technology company's stock worth $6,731,000 after purchasing an additional 29,057 shares during the last quarter. 95.99% of the stock is owned by institutional investors and hedge funds.

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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