Mercury Systems (NASDAQ:MRCY) Upgraded by Zacks Research to Strong-Buy Rating

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.

Zacks Research upgraded shares of Mercury Systems (NASDAQ:MRCY - Free Report) from a strong sell rating to a strong-buy rating in a research note published on Thursday, August 21st,Zacks.com reports.

A number of other brokerages have also recently weighed in on MRCY. Royal Bank Of Canada raised their price objective on shares of Mercury Systems from $50.00 to $55.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 3rd. Truist Financial lifted their target price on shares of Mercury Systems from $60.00 to $71.00 and gave the stock a "buy" rating in a research note on Tuesday, August 12th. JPMorgan Chase & Co. lifted their target price on shares of Mercury Systems from $56.00 to $68.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 12th. Raymond James Financial raised shares of Mercury Systems from an "outperform" rating to a "strong-buy" rating and lifted their target price for the stock from $55.00 to $80.00 in a research note on Tuesday, August 12th. Finally, The Goldman Sachs Group lifted their target price on shares of Mercury Systems from $35.00 to $39.00 and gave the stock a "sell" rating in a research note on Wednesday, August 13th. Three analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $60.71.

Mercury Systems Price Performance

Shares of MRCY traded down $0.02 during mid-day trading on Thursday, reaching $68.12. 142,848 shares of the company's stock were exchanged, compared to its average volume of 614,277. 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 company has a 50-day simple moving average of $55.56 and a two-hundred day simple moving average of $49.79. Mercury Systems has a 52-week low of $32.32 and a 52-week high of $69.95. The company has a market cap of $4.08 billion, a price-to-earnings ratio of -103.20, a PEG ratio of 2.78 and a beta of 0.72.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings data on Monday, August 11th. The technology company reported $0.47 earnings per share 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 business had revenue of $273.11 million during the quarter, compared to analysts' expectations of $244.56 million. During the same period last year, the company posted $0.23 EPS. The company's revenue was up 9.9% on a year-over-year basis. On average, sell-side analysts predict that Mercury Systems will post -0.08 EPS for the current fiscal year.

Insider Buying and Selling

In other Mercury Systems news, EVP Stuart Kupinsky sold 1,220 shares of Mercury Systems stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $64.46, for a total value of $78,641.20. Following the transaction, the executive vice president owned 70,297 shares in the company, valued at $4,531,344.62. This trade represents a 1.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP David E. Farnsworth sold 7,572 shares of Mercury Systems stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $64.46, for a total transaction of $488,091.12. Following the completion of the transaction, the executive vice president owned 161,326 shares in the company, valued at approximately $10,399,073.96. This trade represents a 4.48% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 850,752 shares of company stock worth $55,622,679 over the last 90 days. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Mercury Systems

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Principal Financial Group Inc. grew its position in Mercury Systems by 11.8% in the first quarter. Principal Financial Group Inc. now owns 274,954 shares of the technology company's stock valued at $11,848,000 after acquiring an additional 29,074 shares in the last quarter. Wealth Enhancement Advisory Services LLC acquired a new stake in Mercury Systems in the fourth quarter valued at approximately $241,000. Calamos Advisors LLC acquired a new stake in Mercury Systems in the first quarter valued at approximately $848,000. GAMMA Investing LLC lifted its holdings in Mercury Systems by 6,776.2% in the 1st quarter. GAMMA Investing LLC now owns 45,589 shares of the technology company's stock worth $1,964,000 after buying an additional 44,926 shares in the last quarter. Finally, Lisanti Capital Growth LLC acquired a new position in Mercury Systems in the 1st quarter worth $2,562,000. Institutional investors and hedge funds own 95.99% of the company's stock.

Mercury Systems Company Profile

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.