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

Key Points

• Zacks Research upgraded Mercury Systems from “hold” to “strong-buy,” adding to a generally positive analyst backdrop that includes a “Moderate Buy” average rating and an average price target of $91.00.
• The stock was down 5.9% on the day of the report, even though it opened at $115.83 and has traded between a 52-week low of $49.86 and high of $128.45.
• Mercury Systems beat quarterly expectations, reporting EPS of $0.27 versus the $0.06 estimate and revenue of $235.76 million, up 11.5% year over year.

Mercury Systems (NASDAQ:MRCY - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday,Zacks.com reports.

Several other research firms have also weighed in on MRCY. Wall Street Zen raised Mercury Systems from a "hold" rating to a "buy" rating in a research note on Saturday. Jefferies Financial Group restated a "hold" rating and issued a $105.00 price target on shares of Mercury Systems in a report on Monday, June 1st. Truist Financial upgraded Mercury Systems to a "strong-buy" rating in a research note on Friday, May 1st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Mercury Systems in a research note on Tuesday, April 21st. Finally, Canaccord Genuity Group lifted their price objective on shares of Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $91.00.

Mercury Systems Trading Down 5.9%

Shares of NASDAQ MRCY opened at $115.83 on Monday. Mercury Systems has a 1-year low of $49.86 and a 1-year high of $128.45. The company has a market cap of $6.95 billion, a PE ratio of -482.62 and a beta of 0.93. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40. The company has a 50-day moving average of $104.13 and a two-hundred day moving average of $91.22.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings results 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 negative net margin of 1.46% and a positive return on equity of 2.22%. The business had revenue of $235.76 million during the quarter, compared to analyst estimates of $208.56 million. During the same quarter last year, the business posted $0.06 earnings per share. Mercury Systems's revenue for the quarter was up 11.5% compared to the same quarter last year. As a group, equities analysts expect that Mercury Systems will post 0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Howard L. Lance sold 9,250 shares of Mercury Systems stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total value of $922,780.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Orlando D. Carvalho sold 7,000 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $89.36, for a total transaction of $625,520.00. Following the transaction, the director owned 52,448 shares in the company, valued at $4,686,753.28. This represents a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 21,875 shares of company stock worth $2,040,874. 1.40% of the stock is owned by corporate insiders.

Institutional Trading of Mercury Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. Signaturefd LLC lifted its position in shares of Mercury Systems by 15.4% in the fourth quarter. Signaturefd LLC now owns 804 shares of the technology company's stock valued at $59,000 after buying an additional 107 shares during the last quarter. Maryland State Retirement & Pension System raised its stake in Mercury Systems by 1.8% in the 4th quarter. Maryland State Retirement & Pension System now owns 7,714 shares of the technology company's stock valued at $563,000 after acquiring an additional 134 shares during the period. GAMMA Investing LLC lifted its holdings in Mercury Systems by 8.5% during the 2nd quarter. GAMMA Investing LLC now owns 1,984 shares of the technology company's stock valued at $243,000 after purchasing an additional 155 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its position in Mercury Systems by 1.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 12,058 shares of the technology company's stock worth $880,000 after purchasing an additional 187 shares during the period. Finally, Arizona State Retirement System increased its holdings in shares of Mercury Systems by 1.3% in the fourth 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 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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