Mercury Systems (NASDAQ:MRCY) Reaches New 12-Month High - Time to Buy?

Key Points

• Mercury Systems (NASDAQ:MRCY) shares recently reached a 52-week high of $70.76 before closing at $69.17, reflecting positive investor sentiment.
• The company reported a significant earnings beat with an EPS of $0.47, exceeding estimates by $0.26, and a 9.9% year-over-year revenue increase to $273.11 million.
• Analyst ratings vary with a consensus target price of $60.71, but overall sentiment remains strong with three analysts issuing a Strong Buy rating.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) shares hit a new 52-week high during trading on Monday . The company traded as high as $70.76 and last traded at $69.17, with a volume of 162953 shares traded. The stock had previously closed at $68.93.

Analyst Ratings Changes

MRCY has been the topic of a number of recent research reports. Robert W. Baird boosted their price objective on Mercury Systems from $58.00 to $70.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 12th. JPMorgan Chase & Co. upped their price objective on Mercury Systems from $56.00 to $68.00 and gave the company a "neutral" rating in a research note on Tuesday, August 12th. The Goldman Sachs Group upped their price objective on Mercury Systems from $35.00 to $39.00 and gave the company a "sell" rating in a research note on Wednesday, August 13th. Royal Bank Of Canada increased their price objective on Mercury Systems from $50.00 to $55.00 and gave the stock a "sector perform" rating in a report on Thursday, July 3rd. Finally, Truist Financial increased their price objective on Mercury Systems from $60.00 to $71.00 and gave the stock a "buy" rating in a report on Tuesday, August 12th. Three research 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 given a Sell rating to the stock. According to MarketBeat.com, Mercury Systems has an average rating of "Moderate Buy" and a consensus target price of $60.71.

Mercury Systems Stock Down 0.2%

The firm has a market cap of $4.12 billion, a PE ratio of -104.53, a P/E/G ratio of 2.87 and a beta of 0.77. The business has a fifty day moving average price of $57.89 and a two-hundred day moving average price of $50.97. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.52 and a quick ratio of 2.41.

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

Insider Activity

In related news, CEO William L. Ballhaus sold 13,050 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $64.46, for a total transaction of $841,203.00. Following the transaction, the chief executive officer directly owned 374,976 shares in the company, valued at $24,170,952.96. The trade was a 3.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jana Partners Management, Lp sold 797,000 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $65.42, for a total value of $52,139,740.00. Following the completion of the sale, the director owned 5,964,313 shares in the company, valued at approximately $390,185,356.46. This represents a 11.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 850,752 shares of company stock valued at $55,622,679. Corporate insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of MRCY. Osaic Holdings Inc. lifted its holdings in Mercury Systems by 53.2% during the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock worth $32,000 after buying an additional 208 shares in the last quarter. Squarepoint Ops LLC lifted its holdings in Mercury Systems by 406.1% during the 2nd quarter. Squarepoint Ops LLC now owns 45,871 shares of the technology company's stock worth $2,471,000 after buying an additional 36,807 shares in the last quarter. Cim Investment Management Inc. lifted its holdings in Mercury Systems by 100.7% during the 2nd quarter. Cim Investment Management Inc. now owns 15,827 shares of the technology company's stock worth $852,000 after buying an additional 7,943 shares in the last quarter. Castleark Management LLC acquired a new position in Mercury Systems during the 2nd quarter worth $4,998,000. Finally, Public Sector Pension Investment Board lifted its stake in shares of Mercury Systems by 7.7% in the 2nd quarter. Public Sector Pension Investment Board now owns 173,201 shares of the technology company's stock valued at $9,329,000 after purchasing an additional 12,374 shares during the period. 95.99% of the stock is owned by institutional investors and hedge funds.

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.

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