Mercury Systems (NASDAQ:MRCY) CAO Sells $10,646.03 in Stock

Key Points

• CAO Douglas Munro sold 109 Mercury Systems shares for $10,646 at an average price of $97.67, reducing his direct holdings by 0.83%. The sale was made to cover tax withholding tied to vested equity awards, following additional sales earlier in the week.
• Mercury Systems’ stock fell 3.0% to $91.36, despite quarterly revenue of $289.8 million exceeding estimates; adjusted EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $110.10 target price. Strong bookings and backlog support the outlook, but weaker profitability, falling free cash flow and semiconductor-cost exposure remain concerns.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) CAO Douglas Munro sold 109 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $97.67, for a total value of $10,646.03. Following the transaction, the chief accounting officer directly owned 12,982 shares of the company's stock, valued at $1,267,951.94. The trade was a 0.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Douglas Munro also recently made the following trade(s):

• On Wednesday, August 19th, Douglas Munro sold 548 shares of Mercury Systems stock. The stock was sold at an average price of $100.31, for a total transaction of $54,969.88.
• On Tuesday, August 18th, Douglas Munro sold 494 shares of Mercury Systems stock. The shares were sold at an average price of $111.36, for a total value of $55,011.84.
• On Monday, August 17th, Douglas Munro sold 404 shares of Mercury Systems stock. The shares were sold at an average price of $109.95, for a total transaction of $44,419.80.

Mercury Systems Stock Down 3.0%

NASDAQ:MRCY traded down $2.87 during mid-day trading on Friday, hitting $91.36. 1,117,646 shares of the company's stock were exchanged, compared to its average volume of 675,344. Mercury Systems Inc has a one year low of $65.04 and a one year high of $128.45. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 2.15. The business has a fifty day moving average price of $108.12 and a 200 day moving average price of $94.88. The company has a market cap of $5.49 billion, a PE ratio of -182.72 and a beta of 0.95.

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

Wall Street Analyst Weigh In

Several brokerages recently commented on MRCY. Zacks Research lowered Mercury Systems from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Canaccord Genuity Group raised their target price on Mercury Systems from $106.00 to $128.00 and gave the stock a "buy" rating in a research report on Thursday. Jefferies Financial Group reaffirmed a "hold" rating and set a $115.00 price target on shares of Mercury Systems in a research report on Friday, July 10th. The Goldman Sachs Group increased their price objective on shares of Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a research note on Monday, May 11th. Finally, Truist Financial raised their price objective on shares of Mercury Systems from $109.00 to $120.00 and gave the stock a "buy" rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $110.10.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MRCY. Maryland State Retirement & Pension System grew its position in Mercury Systems by 1.8% during the fourth quarter. Maryland State Retirement & Pension System now owns 7,714 shares of the technology company's stock worth $563,000 after buying an additional 134 shares during the period. GAMMA Investing LLC boosted its stake in shares of Mercury Systems by 8.5% during the 2nd quarter. GAMMA Investing LLC now owns 1,984 shares of the technology company's stock worth $243,000 after acquiring an additional 155 shares in the last quarter. Oregon Public Employees Retirement Fund grew its holdings in shares of Mercury Systems by 1.6% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 12,058 shares of the technology company's stock worth $880,000 after acquiring an additional 187 shares during the period. Arizona State Retirement System increased its stake in Mercury Systems by 1.3% in the 4th quarter. Arizona State Retirement System now owns 15,211 shares of the technology company's stock valued at $1,111,000 after purchasing an additional 195 shares in the last quarter. Finally, Focus Partners Wealth increased its stake in Mercury Systems by 3.0% in the 3rd quarter. Focus Partners Wealth now owns 6,929 shares of the technology company's stock valued at $536,000 after purchasing an additional 199 shares in the last quarter. 95.99% of the stock is owned by hedge funds and other institutional investors.

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

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.

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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