Insider Selling: Mercury Systems (NASDAQ:MRCY) CEO Sells 3,536 Shares

Mercury Systems Inc (NASDAQ:MRCY) CEO William Ballhaus sold 3,536 shares of Mercury Systems stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $109.95, for a total value of $388,783.20. Following the completion of the transaction, the chief executive officer directly owned 301,153 shares in the company, valued at $33,111,772.35. This represents a 1.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mercury Systems Trading Down 3.6%

MRCY stock traded down $3.75 during mid-day trading on Wednesday, reaching $101.25. 1,723,371 shares of the stock traded hands, compared to its average volume of 669,717. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40. Mercury Systems Inc has a 52-week low of $62.78 and a 52-week high of $128.45. The company has a market cap of $6.08 billion, a P/E ratio of -421.88 and a beta of 0.95. The stock’s fifty day moving average is $108.73 and its 200-day moving average is $94.85.

Mercury Systems (NASDAQ:MRCY) last released its earnings results 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 positive return on equity of 2.22% and a negative net margin of 1.46%.The firm had revenue of $289.78 million during the quarter, compared to analysts’ expectations of $266.09 million. During the same period last year, the business earned $0.47 earnings per share. The business’s revenue was up 6.1% on a year-over-year basis. As a group, sell-side analysts expect that Mercury Systems Inc will post 0.33 earnings per share for the current year.

Mercury Systems News Summary

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.

Institutional Investors Weigh In On Mercury Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Mercury Systems during the 2nd quarter valued at $1,146,342,000. State Street Corp raised its holdings in shares of Mercury Systems by 12.1% during the fourth quarter. State Street Corp now owns 3,423,600 shares of the technology company’s stock worth $249,957,000 after acquiring an additional 368,242 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Mercury Systems by 25.1% during the fourth quarter. Invesco Ltd. now owns 1,910,742 shares of the technology company’s stock worth $139,503,000 after acquiring an additional 383,299 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its position in Mercury Systems by 1.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,542,851 shares of the technology company’s stock valued at $112,644,000 after purchasing an additional 21,182 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Mercury Systems by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 1,368,659 shares of the technology company’s stock valued at $99,940,000 after purchasing an additional 47,174 shares in the last quarter. Hedge funds and other institutional investors own 95.99% of the company’s stock.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Piper Sandler reissued an “overweight” rating and set a $131.00 target price (up from $126.00) on shares of Mercury Systems in a research note on Wednesday. Wall Street Zen cut Mercury Systems from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Royal Bank Of Canada lifted their price target on Mercury Systems from $105.00 to $120.00 and gave the company an “outperform” rating in a report on Wednesday. Robert W. Baird upped their price target on Mercury Systems from $120.00 to $130.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, The Goldman Sachs Group raised their price objective on Mercury Systems from $60.00 to $68.00 and gave the stock a “sell” rating in a research report on Monday, May 11th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $106.80.

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.