Mercury Systems (NASDAQ:MRCY) Trading Down 4.8% – Here’s Why

Shares of Mercury Systems Inc (NASDAQ:MRCY) fell 4.8% during mid-day trading on Wednesday . The stock traded as low as $95.06 and last traded at $94.3980. 77,467 shares changed hands during trading, a decline of 88% from the average session volume of 664,795 shares. The stock had previously closed at $99.14.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on MRCY shares. Zacks Research cut Mercury Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, September 19th. Royal Bank Of Canada set a $95.00 target price on Mercury Systems and gave the stock an “outperform” rating in a research note on Wednesday, November 5th. Canaccord Genuity Group started coverage on shares of Mercury Systems in a research note on Thursday, October 2nd. They issued a “buy” rating and a $88.00 price target on the stock. Raymond James Financial reaffirmed a “strong-buy” rating and set a $100.00 price objective on shares of Mercury Systems in a report on Wednesday, November 5th. Finally, Truist Financial set a $102.00 target price on shares of Mercury Systems in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $81.25.

Mercury Systems Price Performance

The firm has a market capitalization of $5.81 billion, a PE ratio of -169.40, a price-to-earnings-growth ratio of 4.30 and a beta of 0.78. The stock’s 50 day simple moving average is $74.29 and its two-hundred day simple moving average is $69.26. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.31 and a current ratio of 3.37.

Mercury Systems (NASDAQ:MRCY) last posted its quarterly earnings results on Tuesday, November 4th. The technology company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.08 by $0.18. Mercury Systems had a positive return on equity of 1.14% and a negative net margin of 3.53%.The firm had revenue of $225.21 million during the quarter, compared to analysts’ expectations of $207.28 million. During the same quarter last year, the firm earned $0.04 earnings per share. The business’s revenue for the quarter was up 10.2% on a year-over-year basis. On average, sell-side analysts forecast that Mercury Systems Inc will post -0.08 EPS for the current year.

Insider Activity

In other news, Director Debora A. Plunkett sold 1,700 shares of the stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $73.99, for a total value of $125,783.00. Following the completion of the sale, the director owned 16,833 shares of the company’s stock, valued at $1,245,473.67. This represents a 9.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CAO Douglas Munro sold 1,329 shares of the firm’s stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $73.42, for a total transaction of $97,575.18. Following the sale, the chief accounting officer owned 14,678 shares of the company’s stock, valued at $1,077,658.76. This represents a 8.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,003,029 shares of company stock valued at $75,673,358. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Mercury Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MRCY. PNC Financial Services Group Inc. increased its position in shares of Mercury Systems by 2.0% during the 3rd quarter. PNC Financial Services Group Inc. now owns 7,175 shares of the technology company’s stock worth $555,000 after purchasing an additional 142 shares during the last quarter. AlphaQuest LLC increased its holdings in Mercury Systems by 41.9% in the 3rd quarter. AlphaQuest LLC now owns 569 shares of the technology company’s stock valued at $44,000 after purchasing an additional 168 shares during the last quarter. Nisa Investment Advisors LLC grew its stake in shares of Mercury Systems by 10.3% in the third quarter. Nisa Investment Advisors LLC now owns 1,941 shares of the technology company’s stock valued at $150,000 after buying an additional 181 shares in the last quarter. GAMMA Investing LLC boosted its holdings in Mercury Systems by 11.3% during the 4th quarter. GAMMA Investing LLC now owns 1,781 shares of the technology company’s stock valued at $130,000 after acquiring an additional 181 shares during the period. Finally, Focus Partners Wealth boosted its stake in shares of Mercury Systems by 3.0% in the third quarter. Focus Partners Wealth now owns 6,929 shares of the technology company’s stock valued at $536,000 after purchasing an additional 199 shares during the period. Institutional investors and hedge funds own 95.99% of the company’s stock.

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.