Mercury Systems (NASDAQ:MRCY) Reaches New 12-Month High Following Analyst Upgrade

Mercury Systems Inc (NASDAQ:MRCY) reached a new 52-week high during trading on Tuesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $128.45 and last traded at $123.07, with a volume of 426445 shares trading hands. The stock had previously closed at $126.21.

A number of other research firms have also issued reports on MRCY. Canaccord Genuity Group upped their price target on Mercury Systems from $102.00 to $106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Wall Street Zen upgraded Mercury Systems from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Weiss Ratings reissued a “sell (d-)” rating on shares of Mercury Systems in a research note on Tuesday, April 21st. The Goldman Sachs Group upped their target price on Mercury Systems from $60.00 to $68.00 and gave the company a “sell” rating in a report on Monday, May 11th. Finally, Truist Financial raised Mercury Systems to a “strong-buy” rating in a research note on Friday, May 1st. Three analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $91.00.

Insider Activity

In other news, EVP David E. Farnsworth sold 3,625 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $84.87, for a total transaction of $307,653.75. Following the completion of the sale, the executive vice president owned 157,701 shares in the company, valued at $13,384,083.87. This trade represents a 2.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Steven Ratner sold 2,000 shares of Mercury Systems stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $92.46, for a total transaction of $184,920.00. Following the sale, the executive vice president directly owned 32,238 shares in the company, valued at approximately $2,980,725.48. The trade was a 5.84% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 21,875 shares of company stock worth $2,040,874. Corporate insiders own 1.40% of the company’s stock.

Key Mercury Systems News

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Zacks Research upgraded Mercury Systems (MRCY) from Hold to Strong-Buy, signaling improved analyst confidence in the stock.
• Positive Sentiment: The firm raised several forward EPS estimates, including Q2 2028, Q3 2028 and Q4 2028, which suggests expectations for stronger profitability later on.
• Positive Sentiment: Recent quarterly results were solid, with Mercury Systems reporting earnings and revenue above Wall Street expectations, supporting the bullish thesis.
• Neutral Sentiment: Some estimates were trimmed for FY2026 and parts of FY2027, indicating that near-term earnings growth may be less robust than previously expected.
• Neutral Sentiment: The stock has also recently reached a new 12-month high, so investor optimism is already elevated. Mercury Systems Hits New 12-Month High – Should You Buy?

Hedge Funds Weigh In On Mercury Systems

A number of hedge funds have recently modified their holdings of the business. Osaic Holdings Inc. increased its position in shares of Mercury Systems by 53.2% during the 2nd quarter. Osaic Holdings Inc. now owns 599 shares of the technology company’s stock worth $32,000 after purchasing an additional 208 shares during the last quarter. Leonteq Securities AG acquired a new position in Mercury Systems in the fourth quarter valued at about $35,000. Hollencrest Capital Management acquired a new position in Mercury Systems in the fourth quarter valued at about $37,000. Federated Hermes Inc. purchased a new position in Mercury Systems during the second quarter worth about $43,000. Finally, Rockefeller Capital Management L.P. boosted its stake in Mercury Systems by 53.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 653 shares of the technology company’s stock worth $48,000 after buying an additional 228 shares during the period. 95.99% of the stock is currently owned by hedge funds and other institutional investors.

Mercury Systems Trading Down 3.0%

The firm has a market capitalization of $6.75 billion, a price-to-earnings ratio of -468.38 and a beta of 0.93. The business’s 50-day simple moving average is $104.84 and its two-hundred day simple moving average is $91.53. The company has a quick ratio of 2.15, a current ratio of 3.19 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY) last issued its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.06 by $0.21. The firm had revenue of $235.76 million for the quarter, compared to analyst estimates of $208.56 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. The business’s revenue for the quarter was up 11.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.06 EPS. Equities analysts forecast that Mercury Systems Inc will post 0.3 earnings per share for the current year.

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.