Insider Selling: Mercury Systems (NASDAQ:MRCY) EVP Sells 1,971 Shares of Stock

Key Points

• Mercury Systems EVP Steven Ratner sold 1,971 shares at an average price of $111.36, reducing his direct holdings by 6.93%. The sale was made to cover tax-withholding obligations tied to vested equity awards, following another sale of 1,084 shares the previous day.
• Mercury Systems reported quarterly revenue of approximately $289.8 million, up 6.1% year over year and above analyst estimates, but adjusted EPS of $0.37 narrowly missed expectations and declined from $0.47 a year earlier.
• The stock fell 3.6% to $101.25, despite a “Moderate Buy” analyst consensus and recent price-target increases from RBC and Robert W. Baird. Record bookings and a growing backlog provided positive demand signals, while lower profitability and weaker cash flow remained concerns.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) EVP Steven Ratner sold 1,971 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $111.36, for a total transaction of $219,490.56. Following the completion of the sale, the executive vice president directly owned 26,488 shares in the company, valued at approximately $2,949,703.68. This trade represents a 6.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Steven Ratner also recently made the following trade(s):

• On Monday, August 17th, Steven Ratner sold 1,084 shares of Mercury Systems stock. The stock was sold at an average price of $109.95, for a total transaction of $119,185.80.

Mercury Systems Stock Down 3.6%

NASDAQ MRCY traded down $3.75 on Wednesday, hitting $101.25. 1,723,371 shares of the stock were exchanged, compared to its average volume of 669,717. Mercury Systems Inc has a fifty-two week low of $62.78 and a fifty-two week high of $128.45. The company has a 50-day moving average price of $108.73 and a 200-day moving average price of $94.85. The company has a quick ratio of 2.15, a current ratio of 3.19 and a debt-to-equity ratio of 0.40. The company has a market cap of $6.08 billion, a PE ratio of -421.88 and a beta of 0.95.

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 for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The firm had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. Mercury Systems's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.47 earnings per share. Sell-side analysts anticipate that Mercury Systems Inc will post 0.33 EPS for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently issued reports on MRCY. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Mercury Systems in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft lowered Mercury Systems to a "hold" rating in a research report on Wednesday, August 12th. Truist Financial upgraded Mercury Systems to a "strong-buy" rating in a research note on Friday, May 1st. Royal Bank Of Canada upped their price target on Mercury Systems from $105.00 to $120.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, Robert W. Baird increased their price target on shares of Mercury Systems from $120.00 to $130.00 and gave the company an "outperform" rating in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $106.80.

Hedge Funds Weigh In On Mercury Systems

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Mercury Systems during the second quarter worth about $1,146,342,000. State Street Corp boosted its position in shares of Mercury Systems by 12.1% in the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company's stock valued at $249,957,000 after purchasing an additional 368,242 shares during the period. Invesco Ltd. boosted its position in shares of Mercury Systems by 25.1% in the 4th quarter. Invesco Ltd. now owns 1,910,742 shares of the technology company's stock valued at $139,503,000 after purchasing an additional 383,299 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in Mercury Systems by 1.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,542,851 shares of the technology company's stock worth $112,644,000 after buying an additional 21,182 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Mercury Systems by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 1,368,659 shares of the technology company's stock worth $99,940,000 after buying an additional 47,174 shares during the last quarter. Hedge funds and other institutional investors own 95.99% of the company's stock.

Mercury Systems News Roundup

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.

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.

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.

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