Mercury Systems Inc (NASDAQ:MRCY) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Mercury Systems has a consensus analyst rating of “Moderate Buy” from 10 analysts, with an average 12-month price target of about $95.78.
• The company recently beat quarterly earnings and revenue estimates, reporting EPS of $0.27 versus $0.06 expected and revenue of $235.76 million versus $208.56 million expected, with revenue up 11.5% year over year.
• There has been notable insider selling, including recent share sales by a director and an EVP, while institutional investors still own a large majority of the stock at 95.99%.

Shares of Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) have received a consensus rating of "Moderate Buy" from the ten analysts that are covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, two have given a hold rating, three have given a buy rating and three have issued a strong buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $95.7778.

Several brokerages have recently issued reports on MRCY. Wall Street Zen lowered Mercury Systems from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Jefferies Financial Group reissued a "hold" rating and issued a $115.00 price target on shares of Mercury Systems in a report on Friday, July 10th. JPMorgan Chase & Co. increased their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. 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. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Mercury Systems in a research report on Friday, July 17th.

Mercury Systems Price Performance

Mercury Systems stock opened at $98.92 on Thursday. Mercury Systems has a 52 week low of $50.13 and a 52 week high of $128.45. The company's 50 day moving average price is $107.80 and its two-hundred day moving average price is $93.44. 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 stock has a market cap of $5.94 billion, a P/E ratio of -412.17 and a beta of 0.93.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.21. The company had revenue of $235.76 million during the quarter, compared to the consensus estimate of $208.56 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.Mercury Systems's revenue was up 11.5% on a year-over-year basis. During the same period last year, the business posted $0.06 earnings per share. On average, equities analysts predict that Mercury Systems will post 0.35 earnings per share for the current year.

Insider Activity

In other news, Director Howard L. Lance sold 9,250 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total transaction of $922,780.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Steven Ratner sold 2,000 shares of Mercury Systems stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $92.46, for a total transaction of $184,920.00. Following the completion of the sale, the executive vice president directly owned 32,238 shares in the company, valued at $2,980,725.48. This trade represents a 5.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 18,250 shares of company stock valued at $1,733,220 in the last three months. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. State Street Corp grew its stake in shares of Mercury Systems by 12.1% during the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company's stock worth $249,957,000 after acquiring an additional 368,242 shares during the period. Invesco Ltd. raised its stake in 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 acquiring an additional 383,299 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in Mercury Systems by 1.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,542,851 shares of the technology company's stock valued at $112,644,000 after purchasing an additional 21,182 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Mercury Systems by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 1,368,659 shares of the technology company's stock valued at $99,940,000 after purchasing an additional 47,174 shares during the last quarter. Finally, Segall Bryant & Hamill LLC boosted its position in Mercury Systems by 46.9% during the first quarter. Segall Bryant & Hamill LLC now owns 934,824 shares of the technology company's stock worth $68,158,000 after purchasing an additional 298,298 shares during the period. Hedge funds and other institutional investors own 95.99% of the company's stock.

Mercury Systems Company Profile

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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