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Steven Ratner, Executive Vice President and CHRO of Mercury Systems Inc (NASDAQ:MRCY), sold 1,839 shares of common stock on June 16, 2025, at a price of $53.4772, for a total transaction value of $98,344. The transaction occurs as Mercury Systems’ stock trades near its 52-week high of $54.32, having delivered an impressive 88% return over the past year.
The transaction is related to covering tax obligations upon the vesting of stock awards. Following the sale, Ratner directly owns 35,174 shares of Mercury Systems Inc. Ratner also indirectly owns 41 shares through a 401K Plan. The $3.1 billion market cap company maintains strong liquidity with a current ratio of 3.44. According to InvestingPro, Mercury Systems has 12 key investment insights available, including analysis of its growth prospects and financial health metrics. The company’s next earnings report is scheduled for August 5, 2025.
In other recent news, Mercury Systems has reported mixed results for its third fiscal quarter of 2025. The company posted revenues of $211 million, exceeding the forecast of $205.88 million and marking a 1.5% year-over-year increase. However, the earnings per share (EPS) were significantly below expectations at -$0.33, compared to the anticipated $0.10. Despite the earnings miss, Mercury Systems demonstrated strong operational efficiency with an adjusted EBITDA of $24.7 million, reflecting an 11.7% margin, which surpassed the forecasted 10.7%.
Analyst firms have shown varied responses to these developments. Truist Securities raised its price target for Mercury Systems to $60, maintaining a Buy rating, citing the company’s strategic direction and operational improvements. Meanwhile, Raymond (NSE:RYMD) James increased its price target to $55, noting the company’s financial results exceeded expectations and highlighting a positive outlook for fiscal year 2026. RBC Capital Markets adjusted its price target to $50, maintaining a Sector Perform rating, while acknowledging Mercury Systems’ ability to maintain financial stability despite the earnings miss.
Mercury Systems has also reported a strong free cash flow of $24.1 million for the quarter, a notable improvement from the anticipated cash use. The company’s focus on enhancing backlog quality and reducing operating expenses appears to be yielding positive results. Analysts have expressed optimism about Mercury Systems’ potential for margin expansion and growth in the defense sector, supported by strategic acquisitions and innovations in cybersecurity and processing technologies.
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