JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Mercury Systems (NASDAQ:MRCY) Stock

Key Points

• JPMorgan Chase & Co. has raised its target price for Mercury Systems stock from $56 to $68, indicating a potential upside of 2.98%, while maintaining a "neutral" rating.
• A number of other research firms also increased their target prices for Mercury Systems, with Truist Financial raising it to $71 and Raymond James Financial setting it at $80, both giving buy ratings.
• Mercury Systems shares surged by 23.2% in midday trading, reaching $66.03, following the positive revisions in stock ratings and price targets by analysts.

Mercury Systems (NASDAQ:MRCY - Get Free Report) had its target price increased by investment analysts at JPMorgan Chase & Co. from $56.00 to $68.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the technology company's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 2.98% from the company's previous close.

Several other research firms have also commented on MRCY. Truist Financial increased their price objective on shares of Mercury Systems from $60.00 to $71.00 and gave the company a "buy" rating in a research report on Tuesday. Raymond James Financial raised Mercury Systems from an "outperform" rating to a "strong-buy" rating and lifted their target price for the company from $55.00 to $80.00 in a research report on Tuesday. Royal Bank Of Canada increased their price objective on shares of Mercury Systems from $50.00 to $55.00 and gave the company a "sector perform" rating in a research note on Thursday, July 3rd. Robert W. Baird raised their price objective on Mercury Systems from $58.00 to $70.00 and gave the stock an "outperform" rating in a research report on Tuesday. Finally, The Goldman Sachs Group lifted their target price on Mercury Systems from $30.00 to $33.00 and gave the stock a "sell" rating in a report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, three have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $58.38.

Mercury Systems Trading Up 23.2%

Shares of MRCY traded up $12.45 during mid-day trading on Tuesday, hitting $66.03. 1,413,978 shares of the company's stock traded hands, compared to its average volume of 592,499. The company has a quick ratio of 2.25, a current ratio of 3.44 and a debt-to-equity ratio of 0.41. Mercury Systems has a 1 year low of $32.32 and a 1 year high of $67.25. The business's 50-day moving average price is $52.01 and its 200-day moving average price is $47.89. The firm has a market capitalization of $3.95 billion, a P/E ratio of -59.16, a PEG ratio of 2.48 and a beta of 0.72.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The technology company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.26. The firm had revenue of $273.11 million for the quarter, compared to analysts' expectations of $244.56 million. Mercury Systems had a negative net margin of 7.33% and a negative return on equity of 0.77%. The business's revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.23 earnings per share. As a group, sell-side analysts forecast that Mercury Systems will post -0.08 EPS for the current fiscal year.

Insider Activity

In related news, EVP Steven Ratner sold 1,839 shares of the company's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $53.48, for a total value of $98,349.72. Following the completion of the transaction, the executive vice president directly owned 35,174 shares in the company, valued at approximately $1,881,105.52. This represents a 4.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Mercury Systems

A number of hedge funds have recently made changes to their positions in the stock. Millennium Management LLC increased its holdings in Mercury Systems by 196.1% in the 4th quarter. Millennium Management LLC now owns 1,023,508 shares of the technology company's stock valued at $42,987,000 after purchasing an additional 677,894 shares in the last quarter. MetLife Investment Management LLC raised its position in shares of Mercury Systems by 1,479.5% in the 1st quarter. MetLife Investment Management LLC now owns 492,638 shares of the technology company's stock valued at $21,228,000 after purchasing an additional 461,449 shares in the last quarter. Emerald Advisers LLC acquired a new position in shares of Mercury Systems in the 2nd quarter valued at approximately $24,599,000. First Trust Advisors LP grew its stake in Mercury Systems by 50.8% in the fourth quarter. First Trust Advisors LP now owns 988,936 shares of the technology company's stock worth $41,535,000 after purchasing an additional 333,109 shares in the last quarter. Finally, Conestoga Capital Advisors LLC grew its stake in Mercury Systems by 13.3% in the second quarter. Conestoga Capital Advisors LLC now owns 2,558,935 shares of the technology company's stock worth $137,824,000 after purchasing an additional 300,749 shares in the last quarter. Institutional investors and hedge funds own 95.99% of the company's stock.

About Mercury Systems

Mercury Systems, Inc, a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers.

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