Mercury Systems (NASDAQ:MRCY) Reaches New 12-Month High - Here's Why

Key Points

• Mercury Systems hit a new 52-week high, trading as high as $104.95 and last up 8.5% to $104.33. The move came on heavier trading volume of 278,801 shares.
• The stock’s jump followed a strong earnings report, with Q4 EPS of $0.27 versus consensus estimates of $0.06 and revenue of $235.76 million, topping expectations. Revenue also rose 11.5% year over year.
• Analysts remain mixed: several firms raised price targets or issued bullish ratings, but others kept sell views, leaving Mercury Systems with a MarketBeat average rating of “Moderate Buy” and an average target price of $89.89.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $104.95 and last traded at $104.33, with a volume of 278801 shares trading hands. The stock had previously closed at $97.11.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on MRCY shares. Canaccord Genuity Group upped their target price on shares of Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. The Goldman Sachs Group upped their target price on shares of Mercury Systems from $60.00 to $68.00 and gave the company a "sell" rating in a research report on Monday, May 11th. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. Royal Bank Of Canada restated an "outperform" rating and set a $105.00 target price on shares of Mercury Systems in a research report on Wednesday, February 4th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Mercury Systems in a research report on Tuesday, April 21st. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Mercury Systems currently has an average rating of "Moderate Buy" and an average target price of $89.89.

Mercury Systems Trading Up 8.5%

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 market capitalization of $6.33 billion, a P/E ratio of -439.00 and a beta of 0.83. The business has a 50 day moving average price of $83.52 and a 200 day moving average price of $82.34.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.21. The company had revenue of $235.76 million during the quarter, compared to analysts' expectations of $208.56 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.Mercury Systems's revenue was up 11.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.06 EPS. Analysts anticipate that Mercury Systems Inc will post 0.18 EPS for the current year.

Insider Buying and Selling

In related news, Director Orlando D. Carvalho sold 7,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $89.36, for a total transaction of $625,520.00. Following the completion of the sale, the director directly owned 52,448 shares of the company's stock, valued at approximately $4,686,753.28. This represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jana Partners Management, Lp sold 100,899 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $89.68, for a total value of $9,048,622.32. Following the sale, the director directly owned 4,114,618 shares of the company's stock, valued at approximately $368,998,942.24. The trade was a 2.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 473,932 shares of company stock worth $43,453,119 over the last quarter. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Mercury Systems

Several hedge funds have recently made changes to their positions in the business. Signaturefd LLC grew its stake in shares of Mercury Systems by 15.4% during the 4th quarter. Signaturefd LLC now owns 804 shares of the technology company's stock worth $59,000 after acquiring an additional 107 shares in the last quarter. Maryland State Retirement & Pension System boosted its holdings in shares of 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 buying an additional 134 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Mercury Systems by 2.0% in the 3rd quarter. PNC Financial Services Group Inc. now owns 7,175 shares of the technology company's stock valued at $555,000 after buying an additional 142 shares during the last quarter. AlphaQuest LLC boosted its holdings in shares of Mercury Systems by 41.9% in the 3rd quarter. AlphaQuest LLC now owns 569 shares of the technology company's stock valued at $44,000 after buying an additional 168 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in shares of Mercury Systems by 11.3% in the 4th quarter. GAMMA Investing LLC now owns 1,781 shares of the technology company's stock valued at $130,000 after buying an additional 181 shares during the last quarter. 95.99% of the stock is owned by institutional investors.

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.

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