Mercury Systems (NASDAQ:MRCY) Shares Break Above 50 Day Moving Average – Here’s What Happened

Mercury Systems Inc (NASDAQ:MRCY)’s stock price passed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $80.11 and traded as high as $86.30. Mercury Systems shares last traded at $83.58, with a volume of 1,380,599 shares trading hands.

Top Mercury Systems Stories

Investors following MRCY have been watching these stories:

• Positive Sentiment: Quarterly results beat estimates: Fiscal Q1 revenue was about $253 million versus roughly $245 million expected, and adjusted EPS of $0.52 topped the $0.30 consensus. Revenue increased 12.4% year over year, and the company swung to a profit. Mercury Systems Reports Record Fiscal First-Quarter Results
• Positive Sentiment: Analyst sentiment strengthened: J.P. Morgan upgraded MRCY to Overweight, citing strong orders and better profits. Canaccord raised its price target to $129 and maintained a Buy rating; Piper Sandler reaffirmed Overweight with a $107 target. Mercury Systems Upgraded at J.P. Morgan
• Neutral Sentiment: Fiscal 2027 outlook: Mercury’s revenue guidance was $1.1 billion, matching consensus. J.P. Morgan’s upgrade came with a lower price target of $102, down from $110, tempering the otherwise positive analyst news. Mercury Systems Q1 Swings to Profit; Raises FY27 Outlook

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Deutsche Bank lowered Mercury Systems to a “hold” rating in a report on Wednesday, August 12th. Oppenheimer assumed coverage on shares of Mercury Systems in a research report on Thursday, October 22nd. They set an “outperform” rating and a $90.00 price objective for the company. Robert W. Baird lifted their target price on shares of Mercury Systems from $120.00 to $130.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 19th. Zacks Research lowered shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Weiss Ratings cut shares of Mercury Systems from a “sell (d)” rating to a “sell (d-)” rating in a research note on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $108.10.

Mercury Systems Trading Down 5.5%

The firm has a market capitalization of $5.08 billion, a PE ratio of 144.80 and a beta of 0.98. The company has a current ratio of 2.90, a quick ratio of 1.85 and a debt-to-equity ratio of 0.22. The business has a fifty day moving average price of $80.24 and a two-hundred day moving average price of $90.86.

Mercury Systems (NASDAQ:MRCY) last issued its quarterly earnings data on Tuesday, November 10th. The technology company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.22. Mercury Systems had a negative net margin of 0.40% and a positive return on equity of 2.52%. The firm had revenue of $253.15 million for the quarter, compared to analyst estimates of $245.00 million. During the same period in the previous year, the firm earned $0.26 EPS. Mercury Systems’s revenue was up 12.4% on a year-over-year basis. Analysts expect that Mercury Systems Inc will post 0.91 EPS for the current fiscal year.

Insider Activity

In other Mercury Systems news, EVP David E. Farnsworth sold 8,155 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $100.31, for a total transaction of $818,028.05. Following the sale, the executive vice president directly owned 124,579 shares in the company, valued at $12,496,519.49. This represents a 6.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William L. Ballhaus sold 111,076 shares of the business’s stock in a transaction dated 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 owned 342,436 shares in the company, valued at $29,833,024.32. This trade represents a 24.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 452,186 shares of company stock worth $41,933,170. 0.99% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Mercury Systems during the 2nd quarter worth approximately $1,146,342,000. Deutsche Bank AG purchased a new position in Mercury Systems in the 2nd quarter valued at approximately $17,454,000. Rice Hall James & Associates LLC acquired a new position in shares of Mercury Systems in the second quarter worth $4,866,000. Manatuck Hill Partners LLC acquired a new position in shares of Mercury Systems in the second quarter worth $2,251,000. Finally, American Capital Management Inc. purchased a new stake in shares of Mercury Systems during the second quarter worth $59,460,000. Hedge funds and other institutional investors own 95.99% of the company’s stock.

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.