Mercury Systems (NASDAQ:MRCY) Shares Gap Down – Time to Sell?

04 Feb 2026, 18:55 by Mitch Edgeman · The Markets Daily

Mercury Systems Inc (NASDAQ:MRCY – Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $99.28, but opened at $86.94. Mercury Systems shares last traded at $81.1570, with a volume of 250,382 shares trading hands.

Mercury Systems News Summary

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

Positive Sentiment: Q2 results: Mercury beat consensus on both revenue ($232.9M vs. est. ~$210M) and EPS ($0.16 vs. $0.07), with year-over-year revenue growth and expanded EBITDA — a fundamental beat that supports longer-term revenue/earnings recovery. Read More.
Positive Sentiment: Backlog & bookings strength: Company reported record backlog (~$1.5B) and rising bookings, signaling a more visible multi-quarter revenue pipeline. This supports revenue stability and upside to future quarters. Read More.
Positive Sentiment: Margin/EBITDA momentum: Management highlighted EBITDA expansion on the quarter, which investors view as progress toward sustained profitability even though GAAP results remain mixed. Read More.
Positive Sentiment: Analyst support: Truist raised its price target (to $109) and maintained a Buy view; William Blair likewise kept a Buy rating, giving institutional validation for upside vs. current levels. Read More.
Neutral Sentiment: Earnings materials available: Full press release, slide deck and the earnings call transcript were posted (useful for modeling/verification if you track bookings cadence and segment trends). Read More.
Neutral Sentiment: Analyst commentary: Several write-ups (Zacks, Seeking Alpha transcript coverage, TipRanks summary) dig into unit economics and strategic mix shifts — useful context but not new headline catalysts by themselves. Read More.
Negative Sentiment: After-hours weakness & GAAP concerns: The stock slid after hours on commentary about persistent quarterly losses and the company still shows a negative net margin on GAAP — factors that keep near-term sentiment cautious despite the beat. Read More.
Negative Sentiment: Street earnings outlook: Analysts still project a challenging FY picture (consensus near-term EPS weakness), leaving upside tied to execution on backlog conversion and margin improvement rather than this single quarter. Read More.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Truist Financial raised their price target on Mercury Systems from $102.00 to $109.00 and gave the company a “buy” rating in a report on Wednesday. Canaccord Genuity Group set a $102.00 target price on shares of Mercury Systems in a report on Wednesday. Raymond James Financial reissued a “strong-buy” rating and issued a $100.00 price target on shares of Mercury Systems in a report on Wednesday, November 5th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Mercury Systems in a research note on Thursday, January 22nd. Finally, The Goldman Sachs Group lifted their target price on Mercury Systems from $49.00 to $55.00 and gave the stock a “sell” rating in a report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Mercury Systems currently has an average rating of “Hold” and an average target price of $87.13.

Check Out Our Latest Stock Analysis on Mercury Systems

Mercury Systems Trading Down 22.0%

The firm’s fifty day simple moving average is $82.80 and its 200 day simple moving average is $74.30. The stock has a market capitalization of $4.65 billion, a P/E ratio of -134.87, a price-to-earnings-growth ratio of 4.16 and a beta of 0.75. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.31 and a current ratio of 3.37.

Mercury Systems (NASDAQ:MRCY – Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.09. Mercury Systems had a negative net margin of 3.53% and a positive return on equity of 1.14%. The business had revenue of $232.87 million for the quarter, compared to analyst estimates of $209.96 million. During the same quarter last year, the business posted $0.07 EPS. The firm’s revenue for the quarter was up 4.4% on a year-over-year basis. As a group, equities research analysts forecast that Mercury Systems Inc will post -0.08 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Debora A. Plunkett sold 1,700 shares of the stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $73.99, for a total value of $125,783.00. Following the completion of the transaction, the director owned 16,833 shares of the company’s stock, valued at approximately $1,245,473.67. This represents a 9.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Douglas Munro sold 1,329 shares of the firm’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 transaction of $97,575.18. Following the completion of the sale, the chief accounting officer owned 14,678 shares in the company, valued at $1,077,658.76. This represents a 8.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,003,029 shares of company stock worth $75,673,358 in the last ninety days. 1.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Crossmark Global Holdings Inc. boosted its position in Mercury Systems by 12.6% during the 4th quarter. Crossmark Global Holdings Inc. now owns 3,696 shares of the technology company’s stock worth $270,000 after buying an additional 415 shares during the period. GRIMES & Co WEALTH MANAGEMENT LLC lifted its holdings in shares of Mercury Systems by 18.3% during the fourth quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 4,994 shares of the technology company’s stock worth $365,000 after purchasing an additional 774 shares during the period. Swedbank AB lifted its holdings in Mercury Systems by 722.1% during the 4th quarter. Swedbank AB now owns 38,349 shares of the technology company’s stock worth $2,800,000 after buying an additional 33,684 shares during the period. Danske Bank A S grew its position in shares of Mercury Systems by 882.0% in the 4th quarter. Danske Bank A S now owns 2,946 shares of the technology company’s stock valued at $215,000 after buying an additional 2,646 shares during the last quarter. Finally, Comerica Bank increased its stake in shares of Mercury Systems by 31.7% in the fourth quarter. Comerica Bank now owns 292,098 shares of the technology company’s stock valued at $21,326,000 after buying an additional 70,233 shares during the period. Institutional investors and hedge funds own 95.99% of the company’s stock.

Mercury Systems Company Profile

(Get Free Report)

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.