Mercury Systems (NASDAQ:MRCY) Shares Climb 5.4% on Strong Earnings

Mercury Systems Inc (NASDAQ:MRCY)’s stock price rose 5.4% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $86.00 and last traded at $83.8940. Approximately 209,037 shares were traded during trading, a decline of 69% from the average session volume of 671,745 shares. The stock had previously closed at $79.62.

The technology company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.30 by $0.22. The business had revenue of $253.15 million for the quarter, compared to analysts’ expectations of $245.00 million. Mercury Systems had a negative net margin of 0.40% and a positive return on equity of 2.55%. The company’s quarterly revenue was up 12.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.26 earnings per share.

Key Headlines Impacting Mercury Systems

Here are a few of the latest headlines about MRCY:

• Positive Sentiment: Fiscal Q1 2027 EPS was $0.52, ahead of the roughly $0.30 consensus, while revenue of $253.2 million topped estimates of $245 million and rose 12.4% year over year. The company also reported record first-quarter results. Mercury Systems Reports First Quarter Results
• Positive Sentiment: Canaccord Genuity raised its price target to $129 and maintained a Buy rating. J.P. Morgan upgraded MRCY to Overweight, citing strong orders and better profits; Piper Sandler reaffirmed its Overweight rating. Mercury Systems upgraded at J.P. Morgan
• Neutral Sentiment: J.P. Morgan’s upgrade came with a lower $102 price target, down from $110, tempering the positive signal from the rating change. Mercury Systems upgraded at J.P. Morgan

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wall Street Zen downgraded Mercury Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Royal Bank Of Canada decreased their price objective on shares of Mercury Systems from $120.00 to $105.00 and set an “outperform” rating for the company in a report on Wednesday, October 28th. Guggenheim assumed coverage on shares of Mercury Systems in a report on Monday, September 14th. They issued a “buy” rating and a $115.00 price objective for the company. Truist Financial increased their target price on shares of Mercury Systems from $109.00 to $120.00 and gave the stock a “buy” rating in a report on Thursday, August 20th. Finally, Piper Sandler reissued an “overweight” rating and set a $107.00 target price on shares of Mercury Systems in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $108.10.

Insider Transactions at Mercury Systems

In related news, CEO William L. Ballhaus sold 49,090 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $89.10, for a total transaction of $4,373,919.00. Following the completion of the transaction, the chief executive officer owned 361,822 shares in the company, valued at $32,238,340.20. The trade was a 11.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Steven Ratner sold 4,000 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $84.51, for a total value of $338,040.00. Following the transaction, the executive vice president owned 19,275 shares of the company’s stock, valued at approximately $1,628,930.25. The trade was a 17.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 452,186 shares of company stock worth $41,933,170. 0.99% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Mercury Systems

Several large investors have recently added to or reduced their stakes in the stock. Verdence Capital Advisors LLC boosted its holdings in shares of Mercury Systems by 4.7% during the third quarter. Verdence Capital Advisors LLC now owns 3,169 shares of the technology company’s stock valued at $263,000 after acquiring an additional 143 shares during the period. GAMMA Investing LLC lifted its position in Mercury Systems by 8.5% in the 2nd quarter. GAMMA Investing LLC now owns 1,984 shares of the technology company’s stock valued at $243,000 after purchasing an additional 155 shares during the last quarter. Quadrant Capital Group LLC lifted its position in Mercury Systems by 2.1% in the 3rd quarter. Quadrant Capital Group LLC now owns 8,017 shares of the technology company’s stock valued at $615,000 after purchasing an additional 167 shares during the last quarter. Guidance Capital Inc. lifted its position in Mercury Systems by 2.5% in the 3rd quarter. Guidance Capital Inc. now owns 7,098 shares of the technology company’s stock valued at $549,000 after purchasing an additional 171 shares during the last quarter. Finally, Hantz Financial Services Inc. lifted its position in Mercury Systems by 26.7% in the 3rd quarter. Hantz Financial Services Inc. now owns 873 shares of the technology company’s stock valued at $72,000 after purchasing an additional 184 shares during the last quarter. 95.99% of the stock is owned by institutional investors and hedge funds.

Mercury Systems Price Performance

The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.85 and a current ratio of 2.96. The business’s 50 day simple moving average is $80.22 and its 200-day simple moving average is $90.94. The stock has a market capitalization of $5.24 billion, a price-to-earnings ratio of -1,076.09 and a beta of 0.98.

Mercury Systems Company Profile

Mercury Systems, Inc. develops and supplies secure processing systems and subsystems for the aerospace and defense industries. Its products include embedded computing, signal processing, radio-frequency and microwave components, and other technologies used to process and manage critical data. The company’s technologies support applications such as radar, electronic warfare, communications, avionics, and command-and-control systems. Mercury works with defense contractors and government customers, providing components and systems designed for use in demanding environments.