Mercury Systems (NASDAQ:MRCY) Reaches New 12-Month High on Better-Than-Expected Earnings

Mercury Systems, Inc. (NASDAQ:MRCY) shares hit a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $42.90 and last traded at $41.97, with a volume of 6743 shares trading hands. The stock had previously closed at $34.19.

The technology company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.23) by $0.32. The company had revenue of $248.56 million during the quarter, compared to analysts’ expectations of $223.80 million. Mercury Systems had a negative net margin of 16.48% and a negative return on equity of 4.92%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on MRCY shares. Royal Bank of Canada lifted their price objective 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. Alembic Global Advisors raised shares of Mercury Systems from a “neutral” rating to an “overweight” rating and set a $48.00 price objective on the stock in a research note on Monday, August 19th. StockNews.com lowered shares of Mercury Systems from a “hold” rating to a “sell” rating in a report on Thursday. Robert W. Baird boosted their price target on shares of Mercury Systems from $26.00 to $37.00 and gave the company a “neutral” rating in a report on Wednesday, August 14th. Finally, Truist Financial lifted their target price on Mercury Systems from $26.00 to $31.00 and gave the stock a “hold” rating in a report on Wednesday, August 14th. Four research analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $34.00.

Insider Activity

In related news, COO Charles Roger Iv Wells sold 1,346 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 value of $53,153.54. Following the sale, the chief operating officer now owns 130,408 shares of the company’s stock, valued at approximately $5,149,811.92. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Mercury Systems news, Director Debora A. Plunkett sold 1,843 shares of the firm’s stock in a transaction on Friday, August 30th. The stock was sold at an average price of $38.07, for a total transaction of $70,163.01. Following the completion of the sale, the director now owns 11,339 shares of the company’s stock, valued at $431,675.73. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Charles Roger Iv Wells sold 1,346 shares of the company’s stock in a transaction that occurred on Monday, August 19th. The shares were sold at an average price of $39.49, for a total value of $53,153.54. Following the completion of the transaction, the chief operating officer now directly owns 130,408 shares in the company, valued at $5,149,811.92. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,099 shares of company stock worth $865,740 over the last three months. Corporate insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Mercury Systems

A number of hedge funds have recently added to or reduced their stakes in MRCY. William Blair Investment Management LLC increased its position in Mercury Systems by 0.6% during the 2nd 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 in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Mercury Systems by 1.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,027,158 shares of the technology company’s stock valued at $54,713,000 after acquiring an additional 20,604 shares during the last quarter. Westwood Holdings Group Inc. boosted its holdings in shares of Mercury Systems by 14.7% during the 1st quarter. Westwood Holdings Group Inc. now owns 1,554,166 shares of the technology company’s stock valued at $45,848,000 after acquiring an additional 199,600 shares in the last quarter. Conestoga Capital Advisors LLC grew its position in Mercury Systems by 1.6% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 1,329,265 shares of the technology company’s stock worth $49,183,000 after acquiring an additional 20,300 shares during the last quarter. Finally, Clearline Capital LP grew its position in Mercury Systems by 18.4% during the 2nd quarter. Clearline Capital LP now owns 526,611 shares of the technology company’s stock worth $14,213,000 after acquiring an additional 81,826 shares during the last quarter. Institutional investors own 95.99% of the company’s stock.

Mercury Systems Stock Down 0.6 %

The stock has a market capitalization of $2.50 billion, a P/E ratio of -17.55 and a beta of 0.71. The firm has a 50-day simple moving average of $36.09 and a 200 day simple moving average of $33.22. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.07 and a quick ratio of 2.64.

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.