Is This Mercury Systems, Inc. (MRCY)’s Unjustifiable Rally?

The stock of Mercury Systems, Inc. (NASDAQ:MRCY) has been Upgraded to Neutral from Underperform by BofA/Merrill in its latest research note that was published on August 09. MRCY was given a price target of $85 by BofA/Merrill, with other Wall Street analysts also giving their reports regarding the stock. Alembic Global Advisors analysts bumped their recommendation on MRCY stock from Neutral to Overweight in a separate flash note to investors on May 01. Analysts at BofA/Merrill downgraded the stock to a Underperform call from its previous Buy stance, in a research note that dated back to April 25.

Mercury’s stock is covered by 9 analysts, with 4 of them rating the stock as Buy. It has been deemed to have strong buy by 3 of the analysts, 2 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 4 analysts. 3 of them rated it as strong buy with 1 of them recommended investors to Hold on to the stock. Meanwhile, 1 analyst(s) rated it as a sell. The above data shows that MRCY has an average analyst rating of 1.78.

Mercury Systems, Inc., which has current market capitalization of above $5 Billion, published its last quarter earnings on June 30, 2019. The company was able to amass $176.96 million in revenue. This figure is $4.88 million more than what analysts had expected which was $172.08 million. During the first quarter of the year, Mercury also recorded $0.47 earnings per share (EPS) which is $0.03 above the $0.44 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 6.17%.

MRCY surged by $2.50 during the normal trading session on Tuesday and reaching a high of $83.74 during the day while it closed the day at $83.68. The Mercury stock had a low trading volume of 0.23 million shares on that day, which is low compared to the average daily volume of 570.73M shares. MRCY has also gained 7.34% of its value over the past 7 days. However, the stock has surged by 14.91% in the 3 months of the year. Over the past six months meanwhile, it has gained 33.12% while it has added 76.95% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -0.14% from its 3 months high price. However, taking another look at MRCY will indicate that it is trading +30.69% away from its 90-day low. Looking at the bigger picture, the Mercury Systems, Inc. stock has dropped by -0.14% from its 52-week high while it has surged by +103.3% from its 52-week low price.

On June 19, 2019 ASLETT MARK, President and CEO sold 10000 shares of the company. The average price for that transaction was $68.42 per share, which meant that ASLETT MARK earned $684200 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with President and CEO, ASLETT MARK selling 10000 shares of this stock on June 04, 2019. The average selling price for the stock was $65.9 per share, with the sold stock accruing $659000. Following this transaction, the President and CEO ASLETT MARK now holds 332440 shares of the company, which is worth around $27007426.

Mercury has around 258 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $98 Billion. The Mercury stock is bringing in revenue of over 12 months, which is roughly 97 Billion. Despite all that, Mercury Systems, Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 14.79%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 99.37%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 99.26%. Over the past 20 days, Mercury’s Stochastic %K stood at 91.57% while its Stochastic %D was revealed to be 89.42%.