Mercury Systems Inc (NASDAQ:MRCY) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus rating of "Hold" on Mercury Systems from 10 firms (2 sell, 3 hold, 4 buy, 1 strong buy) with an average 12‑month target of about $86.33, while individual targets range widely (e.g., Truist $109, RBC $105, Jefferies $80, Goldman $55).
• Mercury beat the latest quarter with $0.16 EPS (vs. $0.07 expected) and $232.9M revenue (up 4.4% YoY), but still reports a negative net margin and analysts project roughly -0.08 EPS for the current year.
• Insiders have sold heavily (859,758 shares worth ~$74.5M in the last 90 days) even as institutional ownership is high (≈96%), with several large funds (notably Goldman Sachs) significantly increasing stakes recently.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) has been assigned a consensus recommendation of "Hold" from the ten research firms that are currently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, three have given a hold recommendation, four have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $86.3333.

A number of research analysts have recently commented on MRCY shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Mercury Systems in a research note on Thursday, January 22nd. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $105.00 target price on shares of Mercury Systems in a research note on Wednesday, February 4th. Truist Financial upped their target price on Mercury Systems from $102.00 to $109.00 and gave the company a "buy" rating in a research note on Wednesday, February 4th. Jefferies Financial Group cut their target price on Mercury Systems from $85.00 to $80.00 and set a "hold" rating on the stock in a research note on Tuesday, April 7th. Finally, The Goldman Sachs Group upped their target price on Mercury Systems from $49.00 to $55.00 and gave the company a "sell" rating in a research note on Tuesday, January 20th.

Mercury Systems Trading Up 3.7%

Shares of NASDAQ MRCY opened at $82.52 on Tuesday. The business's 50 day moving average is $82.04 and its two-hundred day moving average is $80.30. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.96 and a quick ratio of 2.04. Mercury Systems has a 1-year low of $44.01 and a 1-year high of $103.84. The stock has a market capitalization of $4.95 billion, a P/E ratio of -155.70, a PEG ratio of 7.71 and a beta of 0.84.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.07 by $0.09. The firm had revenue of $232.87 million for the quarter, compared to analysts' expectations of $209.96 million. Mercury Systems had a positive return on equity of 1.28% and a negative net margin of 3.23%.The company's quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.07 earnings per share. As a group, research analysts expect that Mercury Systems will post -0.08 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Stuart Kupinsky sold 2,287 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $83.56, for a total value of $191,101.72. Following the completion of the sale, the executive vice president owned 68,010 shares in the company, valued at approximately $5,682,915.60. The trade was a 3.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Douglas Munro sold 582 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $83.56, for a total value of $48,631.92. Following the completion of the sale, the chief accounting officer owned 14,328 shares of the company's stock, valued at $1,197,247.68. The trade was a 3.90% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 859,758 shares of company stock worth $74,481,931. Corporate insiders own 1.40% of the company's stock.

Institutional Trading of Mercury Systems

A number of large investors have recently modified their holdings of MRCY. AQR Capital Management LLC purchased a new stake in shares of Mercury Systems in the first quarter valued at approximately $755,000. Goldman Sachs Group Inc. boosted its holdings in shares of Mercury Systems by 51.6% in the first quarter. Goldman Sachs Group Inc. now owns 855,441 shares of the technology company's stock valued at $36,861,000 after purchasing an additional 290,989 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Mercury Systems by 13.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 159,617 shares of the technology company's stock valued at $6,878,000 after purchasing an additional 18,916 shares during the period. Jane Street Group LLC boosted its holdings in shares of Mercury Systems by 161.3% in the first quarter. Jane Street Group LLC now owns 50,769 shares of the technology company's stock valued at $2,188,000 after purchasing an additional 31,337 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Mercury Systems by 30.3% in the second quarter. JPMorgan Chase & Co. now owns 124,973 shares of the technology company's stock valued at $6,731,000 after purchasing an additional 29,057 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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