Mercury Systems (NASDAQ:MRCY) Sets New 1-Year High - Still a Buy?

Key Points

• Mercury Systems hit a new 52-week high at $124 intraday, extending a strong run that has left the stock well above its 50-day and 200-day moving averages. Despite the surge, the article notes the shares were later down 1.7% on the session.
• Analyst sentiment is mixed but leans positive, with the stock carrying a Moderate Buy consensus and an average price target of $91. Recent moves included upgrades from Truist and higher targets from Canaccord and Goldman Sachs, though some firms still rate it Hold or Sell.
• The company’s latest earnings beat expectations, posting $0.27 EPS versus a $0.06 estimate and revenue of $235.76 million, up 11.5% year over year. Insider selling has also been notable, while institutional investors continue to own the vast majority of the shares.

Shares of Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $124.00 and last traded at $119.4550, with a volume of 4226 shares traded. The stock had previously closed at $115.50.

Analyst Ratings Changes

A number of analysts have recently issued reports on MRCY shares. Weiss Ratings restated a "sell (d-)" rating on shares of Mercury Systems in a research note on Tuesday, April 21st. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. Canaccord Genuity Group lifted their price target on shares of Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. The Goldman Sachs Group upped their price objective on shares of Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a report on Monday, May 11th. Finally, Jefferies Financial Group reiterated a "hold" rating and issued a $105.00 target price on shares of Mercury Systems in a report on Monday, June 1st. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Mercury Systems has a consensus rating of "Moderate Buy" and a consensus price target of $91.00.

Mercury Systems Trading Down 1.7%

The company has a market cap of $6.81 billion, a P/E ratio of -472.85 and a beta of 0.94. The stock's 50 day moving average is $94.69 and its 200-day moving average is $86.89. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 earnings per share (EPS) for the quarter, topping 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 company had revenue of $235.76 million for the quarter, compared to analysts' expectations of $208.56 million. During the same quarter in the previous year, the business posted $0.06 EPS. Mercury Systems's revenue was up 11.5% compared to the same quarter last year. Research analysts anticipate that Mercury Systems Inc will post 0.31 earnings per share for the current fiscal year.

Insider Activity at Mercury Systems

In related news, Director Orlando D. Carvalho sold 7,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $89.36, for a total value of $625,520.00. Following the completion of the transaction, the director directly owned 52,448 shares of the company's stock, valued at approximately $4,686,753.28. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP David E. Farnsworth sold 3,625 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $84.87, for a total transaction of $307,653.75. Following the sale, the executive vice president directly owned 157,701 shares of the company's stock, valued at $13,384,083.87. This represents a 2.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 21,875 shares of company stock worth $2,040,874. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Mercury Systems

A number of large investors have recently bought and sold shares of MRCY. Segall Bryant & Hamill LLC grew its stake in shares of Mercury Systems by 46.9% during the 1st quarter. Segall Bryant & Hamill LLC now owns 934,824 shares of the technology company's stock worth $68,158,000 after purchasing an additional 298,298 shares during the period. Cim Investment Management Inc. lifted its holdings in Mercury Systems by 17.2% in the 1st quarter. Cim Investment Management Inc. now owns 8,927 shares of the technology company's stock valued at $651,000 after purchasing an additional 1,307 shares in the last quarter. Bank of America Corp DE lifted its holdings in Mercury Systems by 19.5% in the 1st quarter. Bank of America Corp DE now owns 294,918 shares of the technology company's stock valued at $21,502,000 after purchasing an additional 48,181 shares in the last quarter. Edgestream Partners L.P. increased its stake in shares of Mercury Systems by 87.0% in the 1st quarter. Edgestream Partners L.P. now owns 88,208 shares of the technology company's stock worth $6,431,000 after acquiring an additional 41,038 shares during the last quarter. Finally, Amundi acquired a new stake in shares of Mercury Systems in the 1st quarter worth $586,000. Hedge funds and other institutional investors own 95.99% of the company's stock.

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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