Mercury Systems (NASDAQ:MRCY) Shares Down 8.7% – Here’s Why

Mercury Systems Inc (NASDAQ:MRCY) fell 8.7% on Wednesday . The company traded as low as $92.21 and last traded at $90.7350. Approximately 75,128 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 661,172 shares. The stock had previously closed at $99.38.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Wall Street Zen cut Mercury Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Mercury Systems in a research report on Friday, July 17th. Canaccord Genuity Group boosted their price objective on Mercury Systems from $102.00 to $106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. The Goldman Sachs Group increased their price objective on Mercury Systems from $60.00 to $68.00 and gave the company a “sell” rating in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. raised their target price 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. Three research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $95.78.

Mercury Systems Price Performance

The business has a 50 day moving average of $108.60 and a 200 day moving average of $94.05. The company has a market cap of $5.47 billion, a PE ratio of -380.25 and a beta of 0.93. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.19 and a quick ratio of 2.15.

Mercury Systems (NASDAQ:MRCY) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.21. The business had revenue of $235.76 million for the quarter, compared to analysts’ expectations of $208.56 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The firm’s revenue for the quarter was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.06 earnings per share. As a group, research analysts predict that Mercury Systems Inc will post 0.35 EPS for the current year.

Insider Activity

In other Mercury Systems news, Director Orlando D. Carvalho sold 7,000 shares of the firm’s stock in a transaction dated 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 sale, the director directly owned 52,448 shares in the company, valued at $4,686,753.28. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Steven Ratner sold 2,000 shares of Mercury Systems stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $92.46, for a total value of $184,920.00. Following the sale, the executive vice president directly owned 32,238 shares in the company, valued at approximately $2,980,725.48. The trade was a 5.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 18,250 shares of company stock valued at $1,733,220. Corporate insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in MRCY. Osaic Holdings Inc. lifted its stake in shares of Mercury Systems by 53.2% in the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company’s stock valued at $32,000 after purchasing an additional 208 shares during the period. Leonteq Securities AG purchased a new stake in Mercury Systems in the fourth quarter worth $35,000. Hollencrest Capital Management purchased a new stake in Mercury Systems in the fourth quarter worth $37,000. Federated Hermes Inc. bought a new position in Mercury Systems in the second quarter worth $43,000. Finally, Rockefeller Capital Management L.P. raised its holdings 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 worth $48,000 after purchasing an additional 228 shares in the last quarter. Institutional investors own 95.99% of the company’s stock.

About Mercury Systems

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.