Mercury Systems (NASDAQ:MRCY) Trading 6% Higher – Here’s Why

Shares of Mercury Systems Inc (NASDAQ:MRCY) shot up 6% during trading on Tuesday . The company traded as high as $83.57 and last traded at $85.8710. Approximately 217,721 shares were traded during trading, a decline of 68% from the average daily volume of 675,823 shares. The stock had previously closed at $81.03.

Analyst Ratings Changes

Several research firms have weighed in on MRCY. Zacks Research downgraded shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Truist Financial boosted their price objective on shares of Mercury Systems from $109.00 to $120.00 and gave the company a “buy” rating in a research report on Thursday, August 20th. Robert W. Baird raised their target price on Mercury Systems from $120.00 to $130.00 and gave the stock an “outperform” rating in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft downgraded Mercury Systems to a “hold” rating in a research report on Wednesday, August 12th. Finally, Weiss Ratings raised Mercury Systems from a “sell (d-)” rating to a “sell (d)” rating in a report on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $110.55.

Mercury Systems Trading Up 7.7%

The stock’s 50-day simple moving average is $97.72 and its two-hundred day simple moving average is $94.86. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 1.85. The firm has a market capitalization of $5.25 billion, a P/E ratio of -174.42 and a beta of 0.98.

Mercury Systems (NASDAQ:MRCY) last announced its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). Mercury Systems had a negative net margin of 3.02% and a positive return on equity of 1.29%. The firm had revenue of $289.78 million for the quarter, compared to the consensus estimate of $266.09 million. During the same quarter in the previous year, the business earned $0.47 earnings per share. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. Equities research analysts expect that Mercury Systems Inc will post 0.91 EPS for the current year.

Insiders Place Their Bets

In other news, CEO William Ballhaus sold 49,090 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $89.10, for a total value of $4,373,919.00. Following the transaction, the chief executive officer directly owned 361,822 shares in the company, valued at $32,238,340.20. The trade was a 11.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Stuart Kupinsky sold 1,000 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $95.23, for a total value of $95,230.00. Following the completion of the transaction, the executive vice president directly owned 56,352 shares of the company’s stock, valued at approximately $5,366,400.96. This trade represents a 1.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 450,186 shares of company stock valued at $41,770,650 in the last ninety days. Insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MRCY. Public Employees Retirement System of Ohio bought a new position in Mercury Systems during the second quarter valued at $43,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Mercury Systems during the 2nd quarter worth about $52,000. IFP Advisors Inc boosted its position in shares of Mercury Systems by 250.8% during the second quarter. IFP Advisors Inc now owns 463 shares of the technology company’s stock valued at $57,000 after buying an additional 331 shares during the period. Leonteq Securities AG bought a new position in Mercury Systems in the 4th quarter valued at $35,000. Finally, Rockefeller Capital Management L.P. lifted its position in shares of Mercury Systems by 53.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company’s stock worth $48,000 after purchasing an additional 228 shares during the last quarter. 95.99% of the stock is currently owned by institutional investors.

About Mercury Systems

Mercury Systems, Inc is a technology company that develops and manufactures secure, high-performance computing and sensor-processing solutions for the aerospace and defense industries. Its products are designed for use in mission-critical applications where ruggedness, rapid data processing, cybersecurity and long operational life are essential.

The company’s offerings include embedded computing systems, digital signal processing technologies, radio-frequency and microwave components, avionics systems, sensor-processing solutions, electronic warfare technology and secure communications products.