Insider Selling: Mercury Systems (NASDAQ:MRCY) EVP Sells $131,182.08 in Stock

Key Points

• Mercury Systems EVP Stuart Kupinsky sold 1,178 shares for $131,182 at an average price of $111.36, reducing his holdings by 1.97%. The sale was made to cover tax obligations tied to vested equity awards.
• The company reported quarterly revenue of approximately $289.8 million, above expectations, while adjusted EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier. Record bookings and a $1.9 billion backlog provided positive demand signals despite weaker profitability and cash flow.
• Analyst sentiment remains moderately bullish, with RBC raising its price target to $120 and the consensus target at $106.80. Shares traded at $101.25, down $3.75 during the session.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) EVP Stuart Kupinsky sold 1,178 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $111.36, for a total transaction of $131,182.08. Following the completion of the sale, the executive vice president owned 58,660 shares in the company, valued at $6,532,377.60. This represents a 1.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Stuart Kupinsky also recently made the following trade(s):

• On Monday, August 17th, Stuart Kupinsky sold 1,195 shares of Mercury Systems stock. The shares were sold at an average price of $109.95, for a total transaction of $131,390.25.

Mercury Systems Stock Performance

Shares of NASDAQ MRCY traded down $3.75 during midday trading on Wednesday, hitting $101.25. 1,723,371 shares of the stock traded hands, compared to its average volume of 669,717. The firm has a 50-day moving average of $108.73 and a two-hundred day moving average of $94.85. The firm has a market capitalization of $6.08 billion, a P/E ratio of -421.88 and a beta of 0.95. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.15 and a current ratio of 3.19. Mercury Systems Inc has a one year low of $62.78 and a one year high of $128.45.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). The firm had revenue of $289.78 million during the quarter, compared to the consensus estimate of $266.09 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The business'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, equities analysts forecast that Mercury Systems Inc will post 0.33 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts recently issued reports on MRCY shares. The Goldman Sachs Group raised their price objective 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. Zacks Research downgraded shares of Mercury Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft cut shares of Mercury Systems to a "hold" rating in a research note on Wednesday, August 12th. Royal Bank Of Canada boosted their price objective on shares of Mercury Systems from $105.00 to $120.00 and gave the company an "outperform" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised their target price on Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $106.80.

Mercury Systems News Summary

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

• Positive Sentiment: Record fourth-quarter bookings rose 93.1% year over year to approximately $660 million, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, up 38.4% year over year, improving visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue increased 6.1% to roughly $290 million, exceeding analyst expectations near $266 million. Management’s fiscal 2027 targets point to low-double-digit revenue growth and potentially stronger performance ahead. Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings
• Positive Sentiment: Several analysts raised their outlooks after the results. RBC increased its price target to $120 with an “outperform” rating, while Baird raised its target to $130 and Piper Sandler lifted its “overweight” target to $131. These Analysts Raise Their Forecasts on Mercury Systems After Q4 Results
• Neutral Sentiment: The broader market backdrop was mixed, with investors also monitoring geopolitical developments and technology stocks, potentially adding volatility to MRCY’s post-earnings reaction. Stock Market Futures Mixed
• Negative Sentiment: Adjusted EPS was $0.37, slightly below the $0.38 consensus and down from $0.47 a year earlier. GAAP EPS fell to approximately $0.01 from $0.27, while adjusted EBITDA declined to $49 million from $51 million. Lower profitability overshadowed the demand signals. Mercury Systems Drops as Q4 EPS Miss Overshadows Record Bookings
• Negative Sentiment: Fourth-quarter free cash flow eased to $29 million from $34 million, and full-year operating and free cash flow were below fiscal 2025 levels. Reported insider activity also showed sales and no open-market purchases in the past six months, adding a cautious signal.

Institutional Investors Weigh In On Mercury Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. raised its stake in Mercury Systems by 53.2% during the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock worth $32,000 after acquiring an additional 208 shares during the period. Leonteq Securities AG purchased a new stake in shares of Mercury Systems in the fourth quarter worth $35,000. Hollencrest Capital Management bought a new stake in shares of Mercury Systems during the 4th quarter valued at $37,000. Public Employees Retirement System of Ohio bought a new stake in shares of Mercury Systems during the 2nd quarter valued at $43,000. Finally, Federated Hermes Inc. purchased a new position in shares of Mercury Systems during the 2nd quarter valued at $43,000. 95.99% of the stock is owned by hedge funds and other institutional investors.

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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