Mercury Systems (NASDAQ:MRCY) Raised to "Strong-Buy" at Zacks Research

Key Points

• Mercury Systems has been upgraded from a "strong sell" to a "strong-buy" rating by Zacks Research, signaling a positive shift in investor sentiment.
• Several analysts have increased their price targets for Mercury Systems, with notable changes from Goldman Sachs and Truist Financial, reflecting growing confidence in the company's prospects.
• The company's recent earnings report indicated a 9.9% year-over-year revenue increase, exceeding expectations with earnings per share of $0.47 compared to a consensus estimate of $0.21.

Mercury Systems (NASDAQ:MRCY - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "strong-buy" rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on the stock. The Goldman Sachs Group increased their price target on shares of Mercury Systems from $35.00 to $39.00 and gave the stock a "sell" rating in a report on Wednesday, August 13th. Truist Financial increased their price target on shares of Mercury Systems from $60.00 to $71.00 and gave the stock a "buy" rating in a report on Tuesday, August 12th. Robert W. Baird increased their price target on shares of Mercury Systems from $58.00 to $70.00 and gave the stock an "outperform" rating in a report on Tuesday, August 12th. Royal Bank Of Canada increased their price target on shares of Mercury Systems from $50.00 to $55.00 and gave the stock a "sector perform" rating in a report on Thursday, July 3rd. Finally, JPMorgan Chase & Co. increased their price target on shares of Mercury Systems from $56.00 to $68.00 and gave the stock a "neutral" rating in a report on Tuesday, August 12th. Three analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $60.71.

Mercury Systems Price Performance

Shares of NASDAQ:MRCY opened at $66.83 on Thursday. The company has a quick ratio of 2.41, a current ratio of 3.52 and a debt-to-equity ratio of 0.40. The firm has a market capitalization of $4.00 billion, a PE ratio of -101.26, a P/E/G ratio of 2.94 and a beta of 0.72. Mercury Systems has a twelve month low of $32.32 and a twelve month high of $69.95. The company has a 50-day moving average price of $54.55 and a two-hundred day moving average price of $49.37.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings results on Monday, August 11th. The technology company reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.21 by $0.26. Mercury Systems had a negative net margin of 4.16% and a positive return on equity of 0.58%. The firm had revenue of $273.11 million for the quarter, compared to the consensus estimate of $244.56 million. During the same period in the prior year, the firm posted $0.23 earnings per share. The company's revenue for the quarter was up 9.9% on a year-over-year basis. Equities analysts forecast that Mercury Systems will post -0.08 EPS for the current year.

Insiders Place Their Bets

In related news, EVP David E. Farnsworth sold 7,572 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $64.46, for a total value of $488,091.12. Following the sale, the executive vice president directly owned 161,326 shares of the company's stock, valued at $10,399,073.96. This trade represents a 4.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO William L. Ballhaus sold 13,050 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $64.46, for a total transaction of $841,203.00. Following the completion of the sale, the chief executive officer directly owned 374,976 shares in the company, valued at $24,170,952.96. This represents a 3.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 843,752 shares of company stock valued at $55,176,359 over the last three months. Corporate insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Neo Ivy Capital Management bought a new position in Mercury Systems during the fourth quarter valued at approximately $33,000. Quaker Wealth Management LLC grew its position in Mercury Systems by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 644 shares of the technology company's stock valued at $35,000 after acquiring an additional 1,288 shares during the last quarter. Federated Hermes Inc. bought a new position in Mercury Systems during the second quarter valued at approximately $43,000. GAMMA Investing LLC grew its position in Mercury Systems by 59.6% during the first quarter. GAMMA Investing LLC now owns 1,058 shares of the technology company's stock valued at $46,000 after acquiring an additional 395 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in Mercury Systems by 33.7% during the second quarter. EverSource Wealth Advisors LLC now owns 929 shares of the technology company's stock valued at $50,000 after acquiring an additional 234 shares during the last quarter. 95.99% of the stock is currently owned by institutional investors.

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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