Mercury Systems (NASDAQ:MRCY) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Mercury Systems to “Hold” from “Strong Buy.” Despite the downgrade, analysts’ consensus remains “Moderate Buy,” with an average price target of $95.78.
• Mercury Systems reported quarterly earnings of $0.27 per share, exceeding the $0.06 estimate, while revenue reached $235.76 million—up 11.5% year over year and above expectations.
• Insiders sold 18,250 shares worth approximately $1.73 million over the past three months, while institutional investors own 95.99% of the company’s stock.

Mercury Systems (NASDAQ:MRCY - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other equities analysts also recently issued reports on MRCY. JPMorgan Chase & Co. raised their price objective on Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a research report on Monday, July 13th. Jefferies Financial Group restated a "hold" rating and issued a $115.00 price target on shares of Mercury Systems in a research report on Friday, July 10th. Canaccord Genuity Group upped their price objective on shares of Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. Finally, Wall Street Zen downgraded shares of Mercury Systems from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $95.78.

Mercury Systems Price Performance

MRCY stock opened at $107.44 on Tuesday. The company has a market capitalization of $6.45 billion, a P/E ratio of -447.67 and a beta of 0.95. The company has a fifty day moving average price of $109.09 and a 200-day moving average price of $94.26. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.15 and a current ratio of 3.19. Mercury Systems has a 52-week low of $51.86 and a 52-week high of $128.45.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.21. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The business had revenue of $235.76 million during the quarter, compared to the consensus estimate of $208.56 million. During the same period in the prior year, the business posted $0.06 earnings per share. Mercury Systems's quarterly revenue was up 11.5% on a year-over-year basis. As a group, equities analysts expect that Mercury Systems will post 0.33 EPS for the current year.

Insiders Place Their Bets

In other Mercury Systems news, 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 value of $184,920.00. Following the completion of the sale, the executive vice president directly owned 32,238 shares in the company, valued at approximately $2,980,725.48. The trade was a 5.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Orlando D. Carvalho sold 7,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $89.36, for a total value of $625,520.00. Following the completion of the transaction, the director directly owned 52,448 shares in the company, valued at approximately $4,686,753.28. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 18,250 shares of company stock worth $1,733,220. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Mercury Systems

A number of institutional investors and hedge funds have recently made changes to their positions in MRCY. Invesco Ltd. lifted its holdings 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 purchasing an additional 943,736 shares in the last quarter. State Street Corp increased its stake in Mercury Systems by 12.1% during the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company's stock valued at $249,957,000 after purchasing an additional 368,242 shares in the last quarter. Segall Bryant & Hamill LLC raised its holdings 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 buying an additional 298,298 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Mercury Systems by 51.6% during the first quarter. Goldman Sachs Group Inc. now owns 855,441 shares of the technology company's stock worth $36,861,000 after buying an additional 290,989 shares during the last quarter. Finally, Fifth Third Bancorp raised its holdings in Mercury Systems by 22,232.9% during the first quarter. Fifth Third Bancorp now owns 267,101 shares of the technology company's stock worth $19,474,000 after buying an additional 265,905 shares during the last quarter. Institutional investors own 95.99% of the company's stock.

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.

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