MRCY stock: buy or sell?

MRCY stock price: $70.86 -2.74% At close on May 21st, 2019

Updated on:
May 21st, 2019

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Shares of Mercury Systems eased a shocking -2.74% and closed at $70.86. With Tuesday it's been 3 sliding days in a row, loosing $-3.10 (-4.19%).

Mercury Systems, Inc. provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States.

Should I buy MRCY stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Mercury Systems stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Mercury Systems stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we found 1 rating published for MRCY stock in the last 30 days.

Is MRCY a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-1-30SunTrust Banksn/aBuy

MRCY stock analysis

Daily outlook

Mercury Systems eased a shocking -2.74% and closed at $70.86.

Mercury Systems closed today at $70.86 and eased a shocking -2.74%. Since price and SMA200d lines crossed up on January, MRCY climbed $27.75 (64.37%). On February, SMA50d and SMA100d crossed up triggering a rise of 13.34%. On May/1, MRCY hit new all time highs, pushing higher previous ATH of $74.26 recorded on Apr/24. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

MRCY stock chart (daily)

Weekly outlook

Mercury Systems ended this week at $70.86 and slipped a fateful -2.85%. Late April MRCY climbed an astounding 6.96% in just one week.

Mercury Systems stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Mercury Systems marked late April. Since late December 2018 when MRCY stock price broke up the SMA40w line, it gained $27.32 (62.75%). Since early October 2018 when SMA20w and SMA40w crossed up, MRCY price gained $15.54 per share (28.09%).

MRCY stock chart (weekly)

MRCY stock price history

MRCY stock went public on January 30th, 1998 with a price of $5.051. Since then, MRCY stock grew a 1,303.20%, with a yearly average of 62.10%. If you had invested right after MRCY's IPO a $1,000 in MRCY stock in 1998, it would worth $13,032.00 today.

1: Adjusted price after possible price splits or reverse-splits.

MRCY stock historical price chart

MRCY stock reached all-time highs on May 1st with a price of $79.83.

MRCY stock price target is $63.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we only found 1 price target for Mercury Systems stock:
MRCY stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-1-30SunTrust BanksRaises Targetn/a$63.00-
(in average)$0.00$63.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on Apr/22, Mercury Systems stayed stable a neutral 0.70%. Unfortunately, reported EPS is not yet available in our database.
MRCY earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.21n/a
2017-Q32017-10-240.260.3742.3%
2017-Q42018-01-230.30.28-6.7%
2018-Q12018-04-240.270.25-7.4%
2018-Q22018-07-310.360.411.1%
2018-Q32018-10-300.280.3110.7%
2018-Q42019-01-290.330.4124.2%
2019-Q12019-04-220.45n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an extraordinary increase of 20.70% to $493.18 million dollars. Instead, its earnings margin (compared to sales) gained to 8.29%, that is $40.88 million.

Mercury Systems presents anual results in June, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Mercury Systems TTM sales up to March 2019 were $630.65 and income $44.07 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Mercury Systems business evolution since June 2018: Annual sales up to March, compared to lastest yearly report, rocketed an amazing 27.87%. Regarding profit margin, Mercury Systems declined -1.30% to 8.29%

MRCY annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$209 M-$-13.21 M-6.3%-
2014$209 M-0.03%$-4.07 M-1.9%-69.19%
2015$235 M12.51%$10 M4.4%-354.77%
2016$270 M15.03%$20 M7.3%90.39%
2017$409 M51.24%$25 M6.1%26.00%
2018$493 M20.70%$41 M8.3%64.35%
TTM $631 M27.87%$44 M7.0%7.80%

Quarterly financial results

Mercury Systems reported $174.64 M in sales for 2019-Q1, a 9.77% up compared to previous quarter. Reported quarter income marked $14.11 M with a profit margin of 8.08%. Profit margin remained constant a 0.30% compared to previous quarter when profit margin was 7.78%. When comparing sales to same quarter last year, Mercury Systems sales marked an astounding growth and skyrocketed a 50.11%. Looking back to recent quarterly results, Mercury Systems posted 2 negative quarters in a row.
MRCY quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$116 M-$9 M7.6%-
2017-Q3$106 M-8.25%$18 M16.9%104.01%
2017-Q4$118 M11.17%$9 M7.7%-49.13%
2018-Q1$116 M-1.34%$4 M3.2%-59.53%
2018-Q2$153 M31.40%$10 M6.6%173.30%
2018-Q3$144 M-5.76%$7 M5.2%-25.96%
2018-Q4$159 M10.44%$12 M7.8%65.57%
2019-Q1$175 M9.77%$14 M8.1%13.94%

Mercury Systems ownership

When you are planning to invest in shares of a company, it's always worth to review its ownership structure.

Mercury Systems shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.19% of all shares.

Bearish positions for MRCY stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Mercury Systems:

MRCYALOTDDDGDINTC
Market cap$3.4 B$183.8 M$1.0 B$49.4 B$199.2 B
Total shares48.5 M7.0 M116.7 M288.2 M4,480.0 M
Float shares47.3 M6.2 M112.2 M277.8 M4,480.0 M
  - Institutional holdings (%)102.1%60.0%69.9%87.8%68.8%
  - Insider holdings (%)3.2%12.4%4.0%6.0%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

MRCY summary

Tuesday, May 21st, 2019
Open$70.64
Close$70.86
Day range$67.01 - $71.17
Previous close$72.86
Session gain-2.74%
Average true range$2.86
50d mov avg$67.91
100d mov avg$61.81
200d mov avg$56.08
Daily patternlt11c
Weekly pattern lt06a

Mercury Systems performance

To better understand Mercury Systems performance you must compare its gains with other related stocks in same sector or industry. We compared Mercury Systems against AstroNova, 3D Systems, General Dynamics, Intel, L3 Technologies, Raytheon, Super Micro Computer, Synaptics and Textron in the following table:
Stock3m6m12m
MRCYMercury Systems9.47%48.83%95.64%
ALOTAstroNova38.06%34.80%35.01%
DDD3D Systems-36.92%-28.38%-27.37%
GDGeneral Dynamics-0.03%-2.68%-15.86%
INTCIntel-14.78%-3.28%-17.79%
LLLL3 Technologies14.45%32.43%24.56%
RTNRaytheon-1.64%6.34%-11.87%
SMCISuper Micro Compu...1.06%42.70%-15.82%
SYNASynaptics-31.12%-21.47%-32.68%
TXTTextron-10.19%-10.23%-25.64%

Mercury Systems competitors

We picked a few stocks to conform a list of Mercury Systems competitors to examine if you are interested in investing in MRCY: