Mercury Systems (NASDAQ:MRCY) Sets New 1-Year High on Earnings Beat

Key Points

• Mercury Systems reached a new 12-month high of $64.64 following its quarterly earnings report, which showed an EPS of $0.47 compared to the consensus estimate of $0.21.
• The company reported $273.11 million in revenue, exceeding analyst expectations of $244.56 million and marking a 9.9% year-over-year growth.
• Analysts have upgraded MRCY, with Raymond James lifting its target price to $80.00 and rating the stock as a "strong-buy."

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $64.64 and last traded at $63.33, with a volume of 432477 shares. The stock had previously closed at $53.58.

The technology company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.21 by $0.26. The company had revenue of $273.11 million during the quarter, compared to the consensus estimate of $244.56 million. Mercury Systems had a positive return on equity of 0.58% and a negative net margin of 4.16%. Mercury Systems's revenue for the quarter was up 9.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 earnings per share.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Truist Financial increased their target price on Mercury Systems from $60.00 to $71.00 and gave the company a "buy" rating in a report on Tuesday. Raymond James Financial upgraded shares of Mercury Systems from an "outperform" rating to a "strong-buy" rating and raised their price target for the stock from $55.00 to $80.00 in a report on Tuesday. JPMorgan Chase & Co. boosted their price objective on shares of Mercury Systems from $56.00 to $68.00 and gave the company a "neutral" rating in a report on Tuesday. Royal Bank Of Canada raised their price target on Mercury Systems from $50.00 to $55.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 3rd. Finally, The Goldman Sachs Group lifted their price objective on shares of Mercury Systems from $35.00 to $39.00 and gave the company a "sell" rating in a report on Wednesday. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, three have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $59.13.

Insider Activity at Mercury Systems

In related news, EVP Steven Ratner sold 1,839 shares of the business's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $53.48, for a total value of $98,349.72. Following the completion of the sale, the executive vice president directly owned 35,174 shares of the company's stock, valued at $1,881,105.52. The trade was a 4.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.60% of the stock is owned by company insiders.

Institutional Trading of Mercury Systems

A number of large investors have recently made changes to their positions in the company. Cerity Partners LLC increased its holdings in shares of Mercury Systems by 0.4% in the 2nd quarter. Cerity Partners LLC now owns 57,552 shares of the technology company's stock valued at $3,100,000 after acquiring an additional 218 shares during the period. EverSource Wealth Advisors LLC increased its position in Mercury Systems by 33.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 929 shares of the technology company's stock valued at $50,000 after acquiring an additional 234 shares during the period. GAMMA Investing LLC raised its stake in Mercury Systems by 25.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,322 shares of the technology company's stock valued at $71,000 after acquiring an additional 264 shares during the last quarter. Teacher Retirement System of Texas lifted its position in Mercury Systems by 4.0% during the 2nd quarter. Teacher Retirement System of Texas now owns 7,703 shares of the technology company's stock worth $415,000 after acquiring an additional 294 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Mercury Systems by 4.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 11,763 shares of the technology company's stock valued at $507,000 after purchasing an additional 449 shares during the last quarter. 95.99% of the stock is owned by institutional investors and hedge funds.

Mercury Systems Stock Down 2.9%

The company has a market capitalization of $3.98 billion, a PE ratio of -101.14, a P/E/G ratio of 3.19 and a beta of 0.72. The company has a current ratio of 3.52, a quick ratio of 2.25 and a debt-to-equity ratio of 0.40. The firm has a 50 day simple moving average of $52.69 and a two-hundred day simple moving average of $48.17.

About Mercury Systems

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.