Mercury Systems (NASDAQ:MRCY) EVP Sells 7,347 Shares

Mercury Systems Inc (NASDAQ:MRCY) EVP David Farnsworth sold 7,347 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $111.36, for a total transaction of $818,161.92. Following the transaction, the executive vice president owned 132,734 shares in the company, valued at $14,781,258.24. This trade represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mercury Systems Stock Performance

Shares of Mercury Systems stock traded down $3.75 on Wednesday, reaching $101.25. 1,723,371 shares of the company were exchanged, compared to its average volume of 669,717. Mercury Systems Inc has a 1-year low of $62.78 and a 1-year high of $128.45. The firm has a market cap of $6.08 billion, a price-to-earnings ratio of -421.88 and a beta of 0.95. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.15 and a current ratio of 3.19. The company’s 50-day moving average is $108.73 and its two-hundred day moving average is $94.85.

Mercury Systems (NASDAQ:MRCY) last issued its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.01). Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The firm had revenue of $289.78 million during the quarter, compared to the consensus estimate of $266.09 million. During the same quarter in the prior year, the business earned $0.47 earnings per share. The company’s revenue for the quarter was up 6.1% compared to the same quarter last year. As a group, research analysts expect that Mercury Systems Inc will post 0.33 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Mercury Systems

A number of large investors have recently added to or reduced their stakes in MRCY. Louisiana State Employees Retirement System acquired a new position in shares of Mercury Systems in the 1st quarter valued at $1,706,000. Rice Hall James & Associates LLC acquired a new stake in shares of Mercury Systems during the second quarter worth $4,866,000. One Capital Management LLC increased its holdings in Mercury Systems by 43.6% in the fourth quarter. One Capital Management LLC now owns 29,300 shares of the technology company’s stock valued at $2,139,000 after purchasing an additional 8,893 shares during the last quarter. Bessemer Group Inc. increased its holdings in Mercury Systems by 45.6% in the fourth quarter. Bessemer Group Inc. now owns 399,496 shares of the technology company’s stock valued at $29,168,000 after purchasing an additional 125,194 shares during the last quarter. Finally, Swedbank AB lifted its stake in Mercury Systems by 722.1% in the fourth quarter. Swedbank AB now owns 38,349 shares of the technology company’s stock valued at $2,800,000 after buying an additional 33,684 shares during the period. Institutional investors own 95.99% of the company’s stock.

Key Mercury Systems News

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Record fourth-quarter bookings rose 93.1% year over year to approximately $660 million, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, up 38.4% year over year, improving visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue increased 6.1% to roughly $290 million, exceeding analyst expectations near $266 million. Management’s fiscal 2027 targets point to low-double-digit revenue growth and potentially stronger performance ahead. Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings
• Positive Sentiment: Several analysts raised their outlooks after the results. RBC increased its price target to $120 with an “outperform” rating, while Baird raised its target to $130 and Piper Sandler lifted its “overweight” target to $131. These Analysts Raise Their Forecasts on Mercury Systems After Q4 Results
• Neutral Sentiment: The broader market backdrop was mixed, with investors also monitoring geopolitical developments and technology stocks, potentially adding volatility to MRCY’s post-earnings reaction. Stock Market Futures Mixed
• Negative Sentiment: Adjusted EPS was $0.37, slightly below the $0.38 consensus and down from $0.47 a year earlier. GAAP EPS fell to approximately $0.01 from $0.27, while adjusted EBITDA declined to $49 million from $51 million. Lower profitability overshadowed the demand signals. Mercury Systems Drops as Q4 EPS Miss Overshadows Record Bookings
• Negative Sentiment: Fourth-quarter free cash flow eased to $29 million from $34 million, and full-year operating and free cash flow were below fiscal 2025 levels. Reported insider activity also showed sales and no open-market purchases in the past six months, adding a cautious signal.

Analyst Ratings Changes

A number of analysts recently weighed in on MRCY shares. Deutsche Bank Aktiengesellschaft cut shares of Mercury Systems to a “hold” rating in a report on Wednesday, August 12th. Zacks Research downgraded Mercury Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Royal Bank Of Canada lifted their target price on Mercury Systems from $105.00 to $120.00 and gave the stock an “outperform” rating in a report on Wednesday. Truist Financial raised Mercury Systems to a “strong-buy” rating in a report on Friday, May 1st. Finally, JPMorgan Chase & Co. increased their price target on Mercury Systems from $99.00 to $101.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $106.80.

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.