Key Points
- CEO William Ballhaus sold 24,144 Mercury Systems shares for approximately $2.69 million at an average price of $111.36, reducing his ownership by 8.02%. The filing said the sale covered tax-withholding obligations tied to vested equity awards.
- Mercury reported quarterly revenue of about $289.8 million, up 6.1% year over year and above estimates, but adjusted EPS of $0.37 narrowly missed consensus and declined from $0.47 a year earlier.
- Record bookings of roughly $660 million and backlog exceeding $1.9 billion improved future revenue visibility, although declining cash flow, weak GAAP profitability and semiconductor cost volatility remain risks.
Mercury Systems Inc (NASDAQ:MRCY - Get Free Report) CAO Douglas Munro sold 494 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $111.36, for a total transaction of $55,011.84. Following the completion of the transaction, the chief accounting officer owned 13,639 shares of the company's stock, valued at approximately $1,518,839.04. This trade represents a 3.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 Monday, August 17th, Douglas Munro sold 404 shares of Mercury Systems stock. The shares were sold at an average price of $109.95, for a total value of $44,419.80.
Mercury Systems Stock Performance
Shares of MRCY stock opened at $101.25 on Thursday. The stock has a market capitalization of $6.08 billion, a PE ratio of -202.50 and a beta of 0.95. The business's 50 day simple moving average is $108.62 and its 200 day simple moving average is $94.87. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.19 and a quick ratio of 2.15. Mercury Systems Inc has a one year low of $62.78 and a one year high of $128.45.
Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 18th. The technology company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.01). The business had revenue of $289.78 million during the quarter, compared to the consensus estimate of $266.09 million. Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.The business's revenue was up 6.1% on a year-over-year basis. During the same period last year, the business posted $0.47 earnings per share. As a group, research analysts forecast that Mercury Systems Inc will post 0.77 earnings per share for the current year.
Analyst Ratings Changes
MRCY has been the subject of a number of analyst reports. Wall Street Zen cut shares of Mercury Systems from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Truist Financial upgraded shares of Mercury Systems to a "strong-buy" rating in a report on Friday, May 1st. Zacks Research cut shares of Mercury Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Jefferies Financial Group reiterated a "hold" rating and set a $115.00 price target on shares of Mercury Systems in a research note on Friday, July 10th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Mercury Systems in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Mercury Systems presently has an average rating of "Moderate Buy" and an average target price of $106.80.
Read Our Latest Stock Analysis on Mercury Systems
Key Stories Impacting Mercury Systems
Here are the key news stories impacting Mercury Systems this week:
- Positive Sentiment: Mercury reported record fourth-quarter bookings of approximately $660 million, up 93.1% year over year, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, up 38.4%, improving revenue visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
- Positive Sentiment: Fourth-quarter revenue rose 6.1% to about $290 million, beating analysts’ roughly $266 million estimate. Analysts at RBC, Baird and Piper Sandler raised price targets and maintained positive ratings, citing expected low-double-digit growth and the company’s sizable backlog. Mercury Systems Q4 Earnings in Line, Revenues Top on Bookings
- Neutral Sentiment: Several executives, including CEO William Ballhaus and multiple EVPs, sold shares totaling roughly $4.7 million in transactions dated August 17–18. The filings state the sales were used to cover tax withholding obligations tied to vested equity awards, reducing their signaling value, although there were no reported insider purchases. Mercury Systems Insider Trading Filing
- Negative Sentiment: Adjusted EPS was $0.37, slightly below the $0.38 consensus and down from $0.47 a year earlier; GAAP EPS was only $0.01 versus $0.27. Adjusted EBITDA fell to $49 million from $51 million, while free cash flow declined to $29 million from $34 million, overshadowing the bookings and revenue performance. Mercury Systems Drops as EPS Miss Overshadows Record Bookings
- Negative Sentiment: A newly highlighted risk is exposure to semiconductor cost volatility: Mercury relies on advanced components while many contracts are fixed-price, potentially allowing input-cost increases to compress margins until pricing or supply-chain adjustments take effect. Mercury Systems Fixed-Price Contract Risk
Institutional Trading of Mercury Systems
Several hedge funds have recently added to or reduced their stakes in MRCY. Public Employees Retirement System of Ohio purchased a new position in Mercury Systems in the second quarter valued at approximately $43,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Mercury Systems during the second quarter valued at $52,000. Leonteq Securities AG purchased a new stake in Mercury Systems in the fourth quarter worth $35,000. Hollencrest Capital Management purchased a new stake in Mercury Systems in the fourth quarter worth $37,000. Finally, Osaic Holdings Inc. raised its stake 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 buying an additional 208 shares during the period. Institutional investors own 95.99% of the company's stock.
Mercury Systems Company Profile
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Get Free Report)
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.
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