Mercury Systems (NASDAQ:MRCY) Sets New 1-Year High Following Strong Earnings

Mercury Systems, Inc. (NASDAQ:MRCY)’s share price hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $42.90 and last traded at $41.97, with a volume of 6743 shares. The stock had previously closed at $34.19.

The technology company reported ($0.10) EPS for the quarter, beating the consensus estimate of ($0.25) by $0.15. The firm had revenue of $204.43 million for the quarter, compared to analyst estimates of $181.08 million. Mercury Systems had a negative return on equity of 4.92% and a negative net margin of 16.48%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MRCY. Robert W. Baird increased their target price on Mercury Systems from $26.00 to $37.00 and gave the company a “neutral” rating in a report on Wednesday, August 14th. Alembic Global Advisors raised Mercury Systems from a “neutral” rating to an “overweight” rating and set a $48.00 price target on the stock in a research note on Monday, August 19th. JPMorgan Chase & Co. lifted their price target on Mercury Systems from $26.00 to $36.00 and gave the stock a “neutral” rating in a research note on Thursday, September 5th. StockNews.com raised Mercury Systems from a “sell” rating to a “hold” rating in a research note on Saturday, October 5th. Finally, Royal Bank of Canada lifted their price target on Mercury Systems from $30.00 to $35.00 and gave the stock a “sector perform” rating in a research note on Wednesday, August 14th. Three analysts have rated the stock with a sell rating, five have given a hold rating and one has issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $33.50.

Insider Activity at Mercury Systems

In related news, CEO William L. Ballhaus sold 6,549 shares of Mercury Systems stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $39.49, for a total transaction of $258,620.01. Following the sale, the chief executive officer now directly owns 353,481 shares in the company, valued at $13,958,964.69. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In other Mercury Systems news, CEO William L. Ballhaus sold 6,549 shares of Mercury Systems stock in a transaction on Monday, August 19th. The stock was sold at an average price of $39.49, for a total transaction of $258,620.01. Following the completion of the transaction, the chief executive officer now owns 353,481 shares in the company, valued at approximately $13,958,964.69. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Stephanie Georges sold 1,340 shares of Mercury Systems stock in a transaction on Monday, August 19th. The shares were sold at an average price of $39.49, for a total value of $52,916.60. Following the transaction, the executive vice president now owns 32,259 shares of the company’s stock, valued at $1,273,907.91. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 22,099 shares of company stock worth $865,740 over the last ninety days. 1.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in MRCY. William Blair Investment Management LLC raised its stake in shares of Mercury Systems by 0.6% in the second quarter. William Blair Investment Management LLC now owns 6,416,449 shares of the technology company’s stock worth $173,180,000 after purchasing an additional 36,923 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Mercury Systems by 1.0% in the second quarter. Dimensional Fund Advisors LP now owns 2,027,158 shares of the technology company’s stock worth $54,713,000 after purchasing an additional 20,604 shares during the last quarter. Westwood Holdings Group Inc. raised its stake in shares of Mercury Systems by 14.7% in the first quarter. Westwood Holdings Group Inc. now owns 1,554,166 shares of the technology company’s stock worth $45,848,000 after purchasing an additional 199,600 shares during the last quarter. Conestoga Capital Advisors LLC raised its stake in shares of Mercury Systems by 1.6% in the third quarter. Conestoga Capital Advisors LLC now owns 1,329,265 shares of the technology company’s stock worth $49,183,000 after purchasing an additional 20,300 shares during the last quarter. Finally, Clearline Capital LP raised its stake in shares of Mercury Systems by 18.4% in the second quarter. Clearline Capital LP now owns 526,611 shares of the technology company’s stock worth $14,213,000 after purchasing an additional 81,826 shares during the last quarter. Hedge funds and other institutional investors own 95.99% of the company’s stock.

Mercury Systems Stock Up 23.5 %

The company has a 50 day moving average price of $36.00 and a two-hundred day moving average price of $33.16. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.07 and a quick ratio of 2.64. The stock has a market cap of $2.51 billion, a PE ratio of -17.67 and a beta of 0.71.

Mercury Systems Company Profile

Mercury Systems, Inc, a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers.