Mercury Systems (NASDAQ:MRCY) Trading Down 4.8% – Here’s Why

Mercury Systems Inc (NASDAQ:MRCY)’s stock price fell 4.8% during mid-day trading on Wednesday . The stock traded as low as $95.06 and last traded at $94.3980. 77,467 shares were traded during mid-day trading, a decline of 88% from the average session volume of 664,795 shares. The stock had previously closed at $99.14.

Analyst Upgrades and Downgrades

MRCY has been the subject of several research reports. Raymond James Financial reiterated a “strong-buy” rating and issued a $100.00 target price on shares of Mercury Systems in a report on Wednesday, November 5th. Canaccord Genuity Group assumed coverage on shares of Mercury Systems in a research note on Thursday, October 2nd. They issued a “buy” rating and a $88.00 price objective for the company. Royal Bank Of Canada set a $95.00 target price on shares of Mercury Systems and gave the stock an “outperform” rating in a report on Wednesday, November 5th. Zacks Research lowered shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, September 19th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Mercury Systems in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $81.25.

Mercury Systems Trading Down 2.5%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.31 and a current ratio of 3.37. The stock has a market capitalization of $5.81 billion, a PE ratio of -169.40, a P/E/G ratio of 4.30 and a beta of 0.78. The company has a 50 day moving average of $74.29 and a two-hundred day moving average of $69.26.

Mercury Systems (NASDAQ:MRCY) last posted its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.18. The firm had revenue of $225.21 million for the quarter, compared to the consensus estimate of $207.28 million. Mercury Systems had a negative net margin of 3.53% and a positive return on equity of 1.14%. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.04 earnings per share. Sell-side analysts predict that Mercury Systems Inc will post -0.08 EPS for the current year.

Insider Transactions at Mercury Systems

In other news, Director Jana Partners Management, Lp sold 1,000,000 shares of the firm’s stock in a transaction dated Thursday, November 6th. The stock was sold at an average price of $75.45, for a total value of $75,450,000.00. Following the completion of the transaction, the director directly owned 4,966,675 shares in the company, valued at $374,735,628.75. This trade represents a 16.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Douglas Munro sold 1,329 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $73.42, for a total value of $97,575.18. Following the completion of the sale, the chief accounting officer owned 14,678 shares in the company, valued at approximately $1,077,658.76. This represents a 8.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,003,029 shares of company stock worth $75,673,358. Company insiders own 1.40% of the company’s stock.

Institutional Trading of Mercury Systems

Several institutional investors and hedge funds have recently bought and sold shares of MRCY. Salomon & Ludwin LLC acquired a new stake in shares of Mercury Systems in the third quarter worth $32,000. Osaic Holdings Inc. lifted its holdings in shares of Mercury Systems by 53.2% in the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company’s stock valued at $32,000 after buying an additional 208 shares during the period. Quaker Wealth Management LLC lifted its stake in shares of Mercury Systems by 200.0% in the 2nd quarter. Quaker Wealth Management LLC now owns 644 shares of the technology company’s stock valued at $35,000 after purchasing an additional 1,288 shares during the period. Federated Hermes Inc. acquired a new stake in Mercury Systems during the second quarter valued at $43,000. Finally, AlphaQuest LLC increased its holdings in Mercury Systems by 41.9% in the third quarter. AlphaQuest LLC now owns 569 shares of the technology company’s stock valued at $44,000 after buying an additional 168 shares in the last quarter. 95.99% of the stock is currently owned by institutional investors and hedge funds.

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.