Mercury Systems (NASDAQ:MRCY) Reaches New 12-Month Low - Time to Sell?

Key Points

• Mercury Systems fell to a new 52-week low, trading as low as $64.88 after a prior close of $71.76, an 8.8% decline.
• Analysts have an average “Hold” rating and a $107.90 average price target, though ratings range from Buy to Sell.
• Quarterly revenue rose 6.1% year over year and topped estimates, but EPS of $0.37 narrowly missed forecasts and was down from $0.47 a year earlier. Insiders also sold about 452,000 shares worth $41.9 million over the prior quarter.

Mercury Systems Inc (NASDAQ:MRCY - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as $64.88 and last traded at $65.45, with a volume of 478,277 shares changing hands. The stock had previously closed at $71.76.

Analyst Ratings Changes

A number of equities analysts have weighed in on MRCY shares. Jefferies Financial Group reaffirmed a "hold" rating and set a $115.00 price target on shares of Mercury Systems in a research report on Friday, July 10th. JPMorgan Chase & Co. boosted their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Weiss Ratings downgraded shares of Mercury Systems from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, September 28th. Truist Financial boosted their price target on shares of Mercury Systems from $109.00 to $120.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Finally, Canaccord Genuity Group raised their price objective on shares of Mercury Systems from $106.00 to $128.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $107.90.

Mercury Systems Stock Down 8.8%

The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 1.85. The firm has a market capitalization of $3.98 billion, a PE ratio of -130.90 and a beta of 0.98. The company has a 50-day moving average price of $81.18 and a 200 day moving average price of $91.48.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). Mercury Systems had a negative net margin of 3.02% and a positive return on equity of 1.29%. The business had revenue of $289.78 million during the quarter, compared to the consensus estimate of $266.09 million. During the same period last year, the company earned $0.47 EPS. The business's revenue was up 6.1% compared to the same quarter last year. Analysts forecast that Mercury Systems Inc will post 0.91 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Stuart Kupinsky sold 1,000 shares of the company's stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $76.00, for a total value of $76,000.00. Following the completion of the sale, the executive vice president owned 59,971 shares in the company, valued at $4,557,796. This represents a 1.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Steven Ratner sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $84.51, for a total transaction of $338,040.00. Following the completion of the transaction, the executive vice president owned 19,275 shares in the company, valued at approximately $1,628,930.25. This trade represents a 17.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 452,186 shares of company stock valued at $41,933,170 over the last quarter. 0.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio purchased a new stake in Mercury Systems during the second quarter worth $43,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Mercury Systems in the second quarter worth $52,000. IFP Advisors Inc increased its position in shares of Mercury Systems by 250.8% in the 2nd quarter. IFP Advisors Inc now owns 463 shares of the technology company's stock valued at $57,000 after purchasing an additional 331 shares during the last quarter. Rockefeller Capital Management L.P. increased its stake in Mercury Systems by 53.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company's stock valued at $48,000 after purchasing an additional 228 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new stake in shares of Mercury Systems in the 2nd quarter valued at about $82,000. 95.99% of the stock is owned by hedge funds and other institutional investors.

About Mercury Systems

Mercury Systems, Inc is an aerospace and defense technology company that develops and manufactures mission-critical computing and electronic systems. Its products are designed for use in aircraft, unmanned systems, naval vessels, ground vehicles, radar platforms and other defense applications.

The company provides embedded computing solutions, including high-performance processors, ruggedized computers, secure servers, data-storage systems and software. Its portfolio also includes radio-frequency and microwave components, electronic warfare systems, signal processing technologies and systems used for radar, communications, avionics and intelligence, surveillance and reconnaissance missions.

Founded in 1981 and headquartered in Andover, Massachusetts, Mercury Systems primarily serves the U.S.

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