Mercury Systems (NASDAQ:MRCY) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday, Zacks.com reports. The brokerage presently has a $93.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 14.93% from the company’s previous close.
According to Zacks, “Robust organic growth, including the expansion of the microelectronics business, is aiding Mercury Systems’ growth. Strong demand for products resulting in significant deal wins, which is driving sales. Moreover, modernization in radar, electronic warfare and C4I is high, providing the company with new opportunities in weapon systems, space, avionics processing, and mission computing and embedded rugged service. Domain expertise in analog and digital integration has helped it build a solid long-term relationship with defense prime contractors. However, though Mercury has been steadily winning development contracts from the federal government, these low-margin deals are likely to affect its profitability in the long run. Also, intense competition from CACI and SAIC is a concern. The stock has underperformed the industry over the past year.”
A number of other research analysts have also weighed in on the company. BidaskClub lowered Mercury Systems from a “buy” rating to a “hold” rating in a report on Thursday, January 7th. Canaccord Genuity dropped their target price on Mercury Systems from $92.00 to $90.00 and set a “buy” rating on the stock in a report on Wednesday, November 4th. The Goldman Sachs Group raised Mercury Systems from a “neutral” rating to a “buy” rating and raised their target price for the stock from $80.00 to $81.00 in a report on Thursday, September 17th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised their target price on Mercury Systems from $90.00 to $100.00 in a report on Wednesday, December 16th. Finally, Smith Barney Citigroup raised their target price on Mercury Systems from $90.00 to $100.00 in a report on Wednesday, December 16th. Three research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $93.60.
Mercury Systems (NASDAQ:MRCY) last announced its quarterly earnings data on Tuesday, November 3rd. The technology company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.04. The business had revenue of $205.62 million for the quarter, compared to analyst estimates of $200.33 million. Mercury Systems had a return on equity of 7.98% and a net margin of 9.97%. The company’s revenue was up 16.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.45 earnings per share. On average, equities analysts expect that Mercury Systems will post 1.84 earnings per share for the current year.
In other Mercury Systems news, CEO Mark Aslett sold 1,250 shares of the stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $77.47, for a total transaction of $96,837.50. Following the transaction, the chief executive officer now owns 282,708 shares in the company, valued at $21,901,388.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 12,448 shares of company stock worth $968,841 in the last quarter. 1.90% of the stock is currently owned by company insiders.
A number of hedge funds have recently modified their holdings of MRCY. Huntington National Bank purchased a new position in Mercury Systems during the fourth quarter worth approximately $25,000. Acadian Asset Management LLC purchased a new position in Mercury Systems during the third quarter worth approximately $35,000. Captrust Financial Advisors purchased a new position in Mercury Systems during the second quarter worth approximately $41,000. Nachman Norwood & Parrott Inc purchased a new position in Mercury Systems during the third quarter worth approximately $110,000. Finally, DekaBank Deutsche Girozentrale purchased a new position in shares of Mercury Systems in the third quarter valued at approximately $155,000. Institutional investors own 91.93% of the company’s stock.
Mercury Systems Company Profile
Mercury Systems, Inc, a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and the Asia Pacific. The company's products and solutions are deployed in approximately 300 programs with 25 defense prime contractors and commercial aviation customers.
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