Mercury Systems (NASDAQ:MRCY) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• Mercury Systems' shares reached above its 200-day moving average, trading as high as $85.26 before settling at $83.50, indicating positive momentum in the stock.
• Analyst ratings show mixed sentiments, with Canaccord Genuity setting a "buy" rating and a price target of $88.00, while Weiss Ratings maintained a "sell" rating.
• Mercury Systems reported a quarterly earnings per share (EPS) of $0.47, significantly beating analysts' expectations and reflecting a 9.9% increase in revenue compared to the previous year.

Shares of Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $55.20 and traded as high as $85.26. Mercury Systems shares last traded at $83.50, with a volume of 1,013,964 shares.

Analyst Ratings Changes

MRCY has been the topic of several recent analyst reports. Canaccord Genuity Group started coverage on Mercury Systems in a research report on Thursday. They set a "buy" rating and a $88.00 price objective on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Mercury Systems in a report on Saturday, September 27th. Robert W. Baird lifted their price target on shares of Mercury Systems from $58.00 to $70.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 12th. The Goldman Sachs Group increased their price objective on shares of Mercury Systems from $35.00 to $39.00 and gave the company a "sell" rating in a research report on Wednesday, August 13th. Finally, UBS Group set a $88.00 target price on shares of Mercury Systems in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $70.67.

Mercury Systems Trading Up 1.1%

The stock's fifty day simple moving average is $67.30 and its 200 day simple moving average is $55.20. The firm has a market capitalization of $5.01 billion, a PE ratio of -126.51, a PEG ratio of 3.43 and a beta of 0.82. The company has a quick ratio of 2.41, a current ratio of 3.52 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last issued its quarterly earnings data 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. Mercury Systems had a negative net margin of 4.16% and a positive return on equity of 0.58%. The firm had revenue of $273.11 million during the quarter, compared to the consensus estimate of $244.56 million. During the same quarter in the previous year, the firm posted $0.23 EPS. The company's revenue for the quarter was up 9.9% compared to the same quarter last year. On average, sell-side analysts predict that Mercury Systems Inc will post -0.08 earnings per share for the current year.

Insider Transactions at Mercury Systems

In related news, EVP Steven Ratner sold 7,000 shares of the business's stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $63.76, for a total transaction of $446,320.00. Following the completion of the transaction, the executive vice president directly owned 33,801 shares in the company, valued at approximately $2,155,151.76. The trade was a 17.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Stuart Kupinsky sold 1,220 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $64.46, for a total transaction of $78,641.20. Following the sale, the executive vice president owned 70,297 shares in the company, valued at approximately $4,531,344.62. The trade was a 1.71% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 848,980 shares of company stock valued at $55,529,247. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC bought a new stake in Mercury Systems during the fourth quarter valued at about $241,000. GAMMA Investing LLC raised its stake in Mercury Systems by 6,776.2% during the 1st quarter. GAMMA Investing LLC now owns 45,589 shares of the technology company's stock valued at $1,964,000 after purchasing an additional 44,926 shares during the period. SG Americas Securities LLC purchased a new position in Mercury Systems in the 1st quarter worth approximately $1,056,000. Fifth Third Bancorp boosted its stake in Mercury Systems by 53.8% in the 1st quarter. Fifth Third Bancorp now owns 1,290 shares of the technology company's stock worth $56,000 after purchasing an additional 451 shares during the period. Finally, Greenwood Capital Associates LLC purchased a new stake in Mercury Systems during the 1st quarter valued at approximately $434,000. Institutional investors own 95.99% of the company's stock.

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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