Mercury Systems (NASDAQ:MRCY) CAO Sells 404 Shares

Mercury Systems Inc (NASDAQ:MRCY) CAO Douglas Munro sold 404 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $109.95, for a total transaction of $44,419.80. Following the completion of the transaction, the chief accounting officer directly owned 14,133 shares of the company’s stock, valued at $1,553,923.35. This trade represents a 2.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Douglas Munro also recently made the following trade(s):

• On Tuesday, August 18th, Douglas Munro sold 494 shares of Mercury Systems stock. The stock was sold at an average price of $111.36, for a total transaction of $55,011.84.

Mercury Systems Price Performance

NASDAQ MRCY traded down $3.75 during trading on Wednesday, reaching $101.25. 1,723,371 shares of the company traded hands, 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 company has a market cap of $6.08 billion, a price-to-earnings ratio of -421.88 and a beta of 0.95. The stock’s 50 day moving average price is $108.62 and its two-hundred day moving average price is $94.87. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.15 and a current ratio of 3.19.

Mercury Systems (NASDAQ:MRCY) last issued its earnings results on Tuesday, August 18th. The technology company reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.01). The company had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.47 earnings per share. As a group, analysts anticipate that Mercury Systems Inc will post 0.33 EPS for the current year.

Key Stories Impacting Mercury Systems

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.

Analysts Set New Price Targets

MRCY has been the subject of a number of analyst reports. Robert W. Baird lifted their price objective on Mercury Systems from $120.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday. Zacks Research lowered shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Truist Financial upgraded shares of Mercury Systems to a “strong-buy” rating in a research report on Friday, May 1st. Wall Street Zen cut shares of Mercury Systems from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the company a “neutral” rating in a report on Monday, July 13th. 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 stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $106.80.

Institutional Investors Weigh In On Mercury Systems

A number of hedge funds have recently added to or reduced their stakes in MRCY. Public Employees Retirement System of Ohio acquired a new stake in Mercury Systems in the 2nd quarter valued at about $43,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Mercury Systems during the second quarter worth approximately $52,000. Leonteq Securities AG bought a new stake in shares of Mercury Systems during the fourth quarter valued at approximately $35,000. Hollencrest Capital Management bought a new stake in shares of Mercury Systems during the fourth quarter valued at approximately $37,000. Finally, Osaic Holdings Inc. increased its holdings in shares of Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company’s stock valued at $32,000 after purchasing an additional 208 shares in the last quarter. Institutional investors own 95.99% of the company’s stock.

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.