Mercury Systems Inc (NASDAQ:MRCY) Receives Consensus Rating of “Hold” from Brokerages

Shares of Mercury Systems Inc (NASDAQ:MRCY) have received an average recommendation of “Hold” from the twelve research firms that are covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $110.10.

Several brokerages have issued reports on MRCY. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Mercury Systems in a report on Friday, July 17th. Canaccord Genuity Group increased their price target on shares of Mercury Systems from $106.00 to $128.00 and gave the company a “buy” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft downgraded shares of Mercury Systems to a “hold” rating in a research report on Wednesday, August 12th. Jefferies Financial Group reiterated a “hold” rating and set a $115.00 target price on shares of Mercury Systems in a research note on Friday, July 10th. Finally, Wall Street Zen lowered Mercury Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 18th.

Mercury Systems Price Performance

MRCY stock opened at $91.36 on Monday. The business has a 50 day moving average of $107.54 and a 200 day moving average of $94.86. The firm has a market cap of $5.49 billion, a PE ratio of -182.72 and a beta of 0.95. Mercury Systems has a twelve month low of $65.04 and a twelve month high of $128.45. The company has a quick ratio of 1.85, a current ratio of 2.96 and a debt-to-equity ratio of 0.29.

Mercury Systems (NASDAQ:MRCY) last released its earnings results on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.01). The company had revenue of $289.78 million during the quarter, compared to analysts’ expectations of $266.09 million. Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.The company’s revenue was up 6.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.47 earnings per share. On average, research analysts forecast that Mercury Systems will post 0.77 EPS for the current fiscal year.

Insider Activity at Mercury Systems

In other Mercury Systems news, CAO Douglas Munro sold 548 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $54,969.88. Following the transaction, the chief accounting officer owned 13,091 shares in the company, valued at approximately $1,313,158.21. This represents a 4.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP David E. Farnsworth sold 6,612 shares of Mercury Systems stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $97.67, for a total transaction of $645,794.04. Following the completion of the sale, the executive vice president owned 117,967 shares of the company’s stock, valued at $11,521,836.89. This represents a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 120,705 shares of company stock valued at $12,485,420 over the last three months. 1.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Mercury Systems

A number of large investors have recently added to or reduced their stakes in MRCY. BlackRock Inc. bought a new position in shares of Mercury Systems in the 2nd quarter worth approximately $1,146,342,000. Rice Hall James & Associates LLC bought a new stake in Mercury Systems during the second quarter valued at approximately $4,866,000. Louisiana State Employees Retirement System bought a new stake in Mercury Systems during the first quarter valued at approximately $1,706,000. One Capital Management LLC increased its holdings in Mercury Systems by 43.6% during the fourth quarter. One Capital Management LLC now owns 29,300 shares of the technology company’s stock valued at $2,139,000 after buying an additional 8,893 shares during the last quarter. Finally, Bessemer Group Inc. increased its holdings in Mercury Systems by 45.6% during the fourth quarter. Bessemer Group Inc. now owns 399,496 shares of the technology company’s stock valued at $29,168,000 after buying an additional 125,194 shares during the last quarter. Institutional investors own 95.99% of the company’s stock.

Mercury Systems News Roundup

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Mercury Systems reported record fourth-quarter bookings of approximately $660 million, up 93.1% year over year, with a 2.28 book-to-bill ratio. Backlog surpassed $1.9 billion, a 38.4% increase, providing stronger revenue visibility as production ramps. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Revenue increased 6.1% year over year to approximately $290 million, exceeding the roughly $266 million analyst estimate. RBC raised its target to $120, Piper Sandler lifted its target to $131 while maintaining an Overweight rating, and Baird also forecast substantial upside. Robert W. Baird Forecasts Strong Price Appreciation
• Neutral Sentiment: CEO William Ballhaus and several executives sold shares in transactions from August 17–20. The sales totaled several million dollars, but SEC filings said they were intended to cover tax withholding on vested equity awards. That reduces their value as a bearish signal, although no insider purchases were reported. Mercury Systems SEC Insider Trading Filing
• Negative Sentiment: Adjusted EPS was $0.37, narrowly missing the $0.38 consensus and falling from $0.47 a year earlier. GAAP EPS was $0.01, while adjusted EBITDA declined to $49 million from $51 million and free cash flow fell to $29 million from $34 million. The earnings shortfall appears to have outweighed the strong bookings and revenue figures. Mercury Systems Drops as EPS Miss Overshadows Record Bookings
• Negative Sentiment: Investors are also evaluating Mercury’s exposure to semiconductor-price volatility. Because many contracts are fixed-price, higher component costs could pressure margins before the company can adjust pricing or supply arrangements. Mercury Systems Fixed-Price Contract Risk

About Mercury Systems

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.