Insider Selling: Mercury Systems (NASDAQ:MRCY) CEO Sells 24,144 Shares

Mercury Systems Inc (NASDAQ:MRCY) CEO William Ballhaus sold 24,144 shares of Mercury Systems stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $111.36, for a total transaction of $2,688,675.84. Following the transaction, the chief executive officer directly owned 277,009 shares of the company’s stock, valued at approximately $30,847,722.24. This represents a 8.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 midday trading on Wednesday, reaching $101.25. The company’s stock had a trading volume of 1,723,371 shares, 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 capitalization of $6.08 billion, a price-to-earnings ratio of -421.88 and a beta of 0.95. The stock has a fifty day simple moving average of $108.73 and a two-hundred day simple moving average of $94.85. 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 for the quarter, compared to analysts’ expectations of $266.09 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.47 earnings per share. On average, equities research analysts predict that Mercury Systems Inc will post 0.33 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Mercury Systems during the second quarter valued at about $1,146,342,000. Invesco Ltd. raised its stake in shares of Mercury Systems by 161.7% in the third quarter. Invesco Ltd. now owns 1,527,443 shares of the technology company’s stock worth $118,224,000 after purchasing an additional 943,736 shares during the last quarter. Bamco Inc. NY acquired a new stake in shares of Mercury Systems during the second quarter worth about $74,244,000. American Capital Management Inc. purchased a new stake in Mercury Systems in the second quarter valued at approximately $59,460,000. Finally, William Blair Investment Management LLC acquired a new position in Mercury Systems in the 2nd quarter worth approximately $46,453,000. Hedge funds and other institutional investors own 95.99% of the company’s stock.

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.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on MRCY shares. Piper Sandler reiterated an “overweight” rating and issued a $131.00 price target (up from $126.00) on shares of Mercury Systems in a report on Wednesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Mercury Systems in a research report on Friday, July 17th. Wall Street Zen downgraded Mercury Systems from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Jefferies Financial Group restated a “hold” rating and issued a $115.00 price objective on shares of Mercury Systems in a report on Friday, July 10th. Finally, Truist Financial raised shares of Mercury Systems to a “strong-buy” rating in a research note on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Mercury Systems has an average rating of “Moderate Buy” and a consensus target price 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.