Mercury Systems (NASDAQ:MRCY) Stock Jumps 5.4% on Better-Than-Expected Earnings

Mercury Systems Inc (NASDAQ:MRCY)’s share price was up 5.4% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $86.00 and last traded at $83.8940. Approximately 209,037 shares changed hands during mid-day 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 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.30 by $0.22. Mercury Systems had a negative net margin of 0.40% and a positive return on equity of 2.55%. The firm had revenue of $253.15 million during the quarter, compared to the consensus estimate of $245.00 million. During the same quarter in the previous year, the firm posted $0.26 EPS. The business’s revenue for the quarter was up 12.4% compared to the same quarter last year.

Key Mercury Systems News

Investors following MRCY have been watching these news items:

• 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

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Canaccord Genuity Group increased their price target on Mercury Systems from $128.00 to $129.00 and gave the stock a “buy” rating in a research report on Thursday. Robert W. Baird lifted their price objective on Mercury Systems from $120.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. upgraded Mercury Systems from a “neutral” rating to an “overweight” rating and cut their target price for the company from $110.00 to $102.00 in a research report on Wednesday. Wall Street Zen lowered Mercury Systems from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Finally, Zacks Research lowered Mercury Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $108.10.

Insider Activity at Mercury Systems

In other news, EVP David Farnsworth sold 8,155 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $818,028.05. Following the completion of the sale, the executive vice president owned 124,579 shares of the company’s stock, valued at approximately $12,496,519.49. This represents a 6.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Ballhaus sold 111,076 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $87.12, for a total transaction of $9,676,941.12. Following the sale, the chief executive officer directly owned 342,436 shares of the company’s stock, valued at approximately $29,833,024.32. This trade represents a 24.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 452,186 shares of company stock valued at $41,933,170 over the last 90 days. Corporate insiders own 0.99% of the company’s stock.

Institutional Inflows and Outflows

Several institutional 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 valued at $1,146,342,000. Deutsche Bank AG bought a new stake in shares of Mercury Systems during the 2nd quarter worth $17,454,000. Rice Hall James & Associates LLC bought a new stake in shares of Mercury Systems during the 2nd quarter worth $4,866,000. Manatuck Hill Partners LLC bought a new stake in shares of Mercury Systems during the 2nd quarter worth $2,251,000. Finally, American Capital Management Inc. acquired a new stake in Mercury Systems in the second quarter valued at about $59,460,000. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Mercury Systems Stock Down 3.3%

The firm has a 50 day moving average of $80.22 and a two-hundred day moving average of $90.94. The firm has a market capitalization of $5.20 billion, a price-to-earnings ratio of -1,072.75 and a beta of 0.98. The company has a quick ratio of 1.85, a current ratio of 2.96 and a debt-to-equity ratio of 0.29.

About Mercury Systems

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.