Insider Selling: Mercury Systems (NASDAQ:MRCY) EVP Sells $645,794.04 in Stock

Key Points

• Mercury Systems EVP David Farnsworth sold 6,612 shares for approximately $645,794, reducing his direct holdings by 5.31% to 117,967 shares. The sale was disclosed as covering tax withholding obligations tied to vested equity awards.
• Mercury Systems reported quarterly revenue of $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 recently traded at $91.36, while analysts’ average price target stood at $110.10; however, the consensus rating was Hold, reflecting mixed views despite strong bookings, backlog growth and substantial institutional ownership.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) EVP David Farnsworth sold 6,612 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $97.67, for a total value of $645,794.04. Following the completion of the sale, the executive vice president directly owned 117,967 shares in the company, valued at approximately $11,521,836.89. This trade represents a 5.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mercury Systems Stock Performance

NASDAQ:MRCY traded down $2.87 during midday trading on Friday, reaching $91.36. 1,117,619 shares of the company traded hands, compared to its average volume of 675,344. The firm has a market capitalization of $5.49 billion, a price-to-earnings ratio of -182.72 and a beta of 0.95. The company has a fifty day moving average price of $108.12 and a 200 day moving average price of $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.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its earnings results on Tuesday, August 18th. The technology company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.01). The company had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.Mercury Systems's quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.47 earnings per share. On average, analysts expect that Mercury Systems Inc will post 0.77 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Truist Financial lifted their price objective on shares of Mercury Systems from $109.00 to $120.00 and gave the company a "buy" rating in a research report on Thursday. Wall Street Zen cut shares of Mercury Systems from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Deutsche Bank Aktiengesellschaft lowered 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 Mercury Systems from $105.00 to $120.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Zacks Research lowered Mercury Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, five have given 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 currently has a consensus rating of "Hold" and an average target price of $110.10.

Hedge Funds Weigh In On Mercury Systems

Several large investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in Mercury Systems during the 2nd quarter valued at $1,146,342,000. Invesco Ltd. raised its stake in shares of Mercury Systems by 161.7% in the 3rd quarter. Invesco Ltd. now owns 1,527,443 shares of the technology company's stock worth $118,224,000 after buying an additional 943,736 shares in the last quarter. Bamco Inc. NY acquired a new stake in shares of Mercury Systems in the second quarter valued at $74,244,000. American Capital Management Inc. acquired a new stake in shares of Mercury Systems in the second quarter valued at $59,460,000. Finally, William Blair Investment Management LLC bought a new position in Mercury Systems during the second quarter valued at about $46,453,000. Institutional investors and hedge funds 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: 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

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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