Insider Selling: Mercury Systems (NASDAQ:MRCY) CAO Sells 548 Shares

Mercury Systems Inc (NASDAQ:MRCY) CAO Douglas Munro sold 548 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $54,969.88. Following the completion of the sale, the chief accounting officer directly owned 13,091 shares in the company, valued at $1,313,158.21. This represents a 4.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 Thursday, August 20th, Douglas Munro sold 109 shares of Mercury Systems stock. The stock was sold at an average price of $97.67, for a total transaction of $10,646.03.
• On Tuesday, August 18th, Douglas Munro sold 494 shares of Mercury Systems stock. The shares were sold at an average price of $111.36, for a total value of $55,011.84.
• On Monday, August 17th, Douglas Munro sold 404 shares of Mercury Systems stock. The stock was sold at an average price of $109.95, for a total transaction of $44,419.80.

Mercury Systems Stock Down 3.0%

MRCY traded down $2.87 during mid-day trading on Friday, reaching $91.36. 1,117,646 shares of the stock were exchanged, compared to its average volume of 675,344. The stock has a market capitalization of $5.49 billion, a PE ratio of -182.72 and a beta of 0.95. The company has a 50 day moving average price of $108.12 and a two-hundred day moving average price of $94.88. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.15 and a current ratio of 2.96. Mercury Systems Inc has a 1 year low of $65.04 and a 1 year high of $128.45.

Mercury Systems (NASDAQ:MRCY) last posted its quarterly earnings results 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 for the quarter was up 6.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.47 earnings per share. As a group, research analysts anticipate that Mercury Systems Inc will post 0.77 EPS for the current year.

Key Headlines 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% year over year, with a 2.28 book-to-bill ratio. Backlog surpassed $1.9 billion, rising 38.4% and improving longer-term revenue visibility. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Revenue increased 6.1% year over year to approximately $289.8 million, well above the roughly $266.1 million analyst estimate. RBC raised its price target to $120, while Piper Sandler lifted its target to $131 and reaffirmed an “Overweight” rating; Baird also forecast substantial appreciation. Royal Bank of Canada Mercury Systems Forecast
• Positive Sentiment: A strategic alliance with Palantir Technologies is intended to automate material planning and factory operations for U.S. military programs. Investors may view the partnership as a potential catalyst for higher production throughput and shorter delivery times. Mercury Systems and Palantir Partnership
• Neutral Sentiment: Multiple executives sold shares in transactions totaling roughly $4.7 million. The filings say the sales covered tax withholding on vested equity awards, limiting their value as a bearish signal, although no insider purchases were reported. Mercury Systems 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, adjusted EBITDA declined to $49 million, and free cash flow fell to $29 million, overshadowing the strong bookings and revenue figures. Why Mercury Systems Is Down
• Negative Sentiment: Mercury’s fixed-price contracts expose margins to volatility in advanced semiconductor costs. Rising component expenses could pressure profitability before the company can adjust pricing or supply arrangements. Mercury Systems Fixed-Price Contract Risk

Institutional Investors Weigh In On Mercury Systems

A number of hedge funds have recently made changes to their positions in MRCY. Nykredit A S bought a new position in Mercury Systems in the second quarter valued at approximately $265,000. Sigma Planning Corp bought a new stake in shares of Mercury Systems in the 2nd quarter worth $633,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Mercury Systems by 5.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 122,585 shares of the technology company’s stock valued at $14,996,000 after buying an additional 6,413 shares in the last quarter. Wellington Management Group LLP grew its stake in Mercury Systems by 2.6% in the 2nd quarter. Wellington Management Group LLP now owns 775,502 shares of the technology company’s stock worth $94,867,000 after buying an additional 19,977 shares in the last quarter. Finally, Beacon Pointe Advisors LLC bought a new stake in Mercury Systems in the second quarter valued at approximately $372,000. Institutional investors and hedge funds own 95.99% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on MRCY. Canaccord Genuity Group upped their target price on shares of Mercury Systems from $106.00 to $128.00 and gave the stock a “buy” rating in a research note on Thursday. Piper Sandler reiterated an “overweight” rating and issued a $131.00 price target (up from $126.00) on shares of Mercury Systems in a research note on Wednesday. Wall Street Zen cut shares of Mercury Systems from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Mercury Systems in a research note on Friday, July 17th. Finally, Jefferies Financial Group reiterated a “hold” rating and set a $115.00 target price on shares of Mercury Systems in a research report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $110.10.

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.