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

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

Several equities research analysts have recently commented on MRCY shares. JPMorgan Chase & Co. boosted their price target on Mercury Systems from $99.00 to $101.00 and gave the stock a “neutral” rating in a research note on Monday, July 13th. Robert W. Baird boosted their price target on Mercury Systems from $120.00 to $130.00 and gave the company an “outperform” rating in a research report on Wednesday. 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. Canaccord Genuity Group boosted their price objective on Mercury Systems from $106.00 to $128.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Zacks Research cut Mercury Systems from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th.

Key Stories Impacting Mercury Systems

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

Insider Transactions at Mercury Systems

In other Mercury Systems news, CEO William L. Ballhaus sold 26,802 shares of the company’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $100.31, for a total value of $2,688,508.62. Following the sale, the chief executive officer directly owned 250,207 shares in the company, valued at $25,098,264.17. This represents a 9.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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. Also, EVP David E. Farnsworth sold 8,155 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 value of $818,028.05. Following the transaction, the executive vice president directly owned 124,579 shares in the company, valued at $12,496,519.49. This trade represents a 6.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 120,705 shares of company stock valued at $12,485,420 in the last ninety days. 1.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Mercury Systems

A number of institutional investors have recently made changes to their positions in MRCY. Maryland State Retirement & Pension System raised its holdings in Mercury Systems by 1.8% during the fourth quarter. Maryland State Retirement & Pension System now owns 7,714 shares of the technology company’s stock worth $563,000 after buying an additional 134 shares during the last quarter. GAMMA Investing LLC boosted its holdings 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 period. Oregon Public Employees Retirement Fund increased its holdings in shares of Mercury Systems by 1.6% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 12,058 shares of the technology company’s stock worth $880,000 after buying an additional 187 shares during the last quarter. Arizona State Retirement System boosted its stake in shares of Mercury Systems by 1.3% in the 4th quarter. Arizona State Retirement System now owns 15,211 shares of the technology company’s stock valued at $1,111,000 after purchasing an additional 195 shares in the last quarter. Finally, Focus Partners Wealth grew its position in Mercury Systems by 3.0% during the 3rd quarter. Focus Partners Wealth now owns 6,929 shares of the technology company’s stock worth $536,000 after acquiring an additional 199 shares during the last quarter. Institutional investors own 95.99% of the company’s stock.

Mercury Systems Price Performance

Shares of MRCY stock opened at $91.36 on Monday. Mercury Systems has a 12 month low of $65.04 and a 12 month high of $128.45. The company has a market capitalization of $5.49 billion, a PE ratio of -182.72 and a beta of 0.95. The firm’s 50-day moving average is $107.54 and its two-hundred day moving average is $94.85. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.96 and a quick ratio of 2.15.

Mercury Systems (NASDAQ:MRCY) last posted its quarterly earnings results on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). Mercury Systems had a positive return on equity of 1.29% and a negative net margin of 3.02%.The business had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. During the same quarter last year, the firm earned $0.47 EPS. The business’s revenue was up 6.1% on a year-over-year basis. Analysts predict that Mercury Systems will post 0.77 earnings per share for the current year.

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.