Mercury Systems Inc. (NASDAQ:MRCY) Vice President and Chief Accounting Officer Douglas Munro has sold a total of $13,622 worth of company stock, according to a recent SEC filing. The transaction took place on August 19, 2024, with the shares sold at a price of $39.4851 each.
The recent filing indicates that Munro disposed of 345 shares of Mercury Systems' common stock. Following the sale, Munro's direct holdings in the company amount to 15,361 shares. Additionally, the executive holds an indirect position of 531 shares through a 401K plan.
The filing noted that the shares were sold as part of a sell-to-cover program to satisfy tax withholding obligations that arose upon the vesting of stock awards. This is a common practice for executives to manage the tax impact associated with the vesting of equity awards.
Mercury Systems, headquartered in Andover, Massachusetts, specializes in electronic components and accessories, and is known for providing secure processing subsystems for various critical defense and intelligence programs.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future prospects. However, sales like this one, which are conducted to cover tax obligations, are routine and not necessarily indicative of an executive's outlook on the company's future performance.
For more detailed information, investors are encouraged to review the full SEC Form 4 filing.
In other recent news, Mercury Systems has reported record quarterly bookings of $284 million and annual bookings of $1.02 billion in the fourth quarter of fiscal year 2024. The company's revenue for the quarter was $249 million, contributing to a full-year revenue of $835 million. Adjusted EBITDA for the quarter rose by 42% year-over-year to $31 million, and the company achieved a historic high of $61 million in free cash flow.
The backlog also experienced a 16% year-over-year increase, reaching a record $1.3 billion. Mercury Systems aims to expand EBITDA margins and generate positive free cash flow in the fiscal year 2025. The company also plans to allocate operational capacity to programs with large unbilled receivable balances.
However, the company will not provide detailed guidance for fiscal year 2025 at this time. Despite a decrease in net loss and loss per share compared to the previous year, Mercury Systems is confident in the progress of their Common Processing Architecture programs and expects to see follow-on orders as they deliver products to customers.
InvestingPro Insights
As Mercury Systems Inc. (NASDAQ:MRCY) navigates the complexities of the defense and intelligence sectors, recent movements in the company's stock provide a glimpse into its financial health and future prospects. According to the latest data from InvestingPro, Mercury Systems has a market capitalization of approximately $2.28 billion, reflecting its standing in the market. Despite facing challenges, as indicated by a negative P/E ratio of -16.11, the company's liquid assets surpass its short-term obligations, suggesting a certain degree of financial stability.
InvestingPro Tips highlight that analysts are predicting net income growth for Mercury Systems this year, which could signal a turnaround from the previous twelve months where the company was not profitable. However, it's worth noting that four analysts have revised their earnings estimates downwards for the upcoming period, which may warrant investor attention. For those seeking additional insights, there are more InvestingPro Tips available, providing a comprehensive view of the company's financial outlook.
From a performance standpoint, the company has seen a strong return over the last three months, with a 19.59% price total return. This is complemented by a substantial 36.59% return over the past six months, indicating a significant uptick in the company's share price. While Mercury Systems does not pay a dividend, the recent share price performance could be appealing to growth-focused investors.
For a deeper dive into Mercury Systems' financials and to access all the available InvestingPro Tips, interested parties can visit the dedicated page at https://www.investing.com/pro/MRCY. With additional tips at their disposal, investors can make more informed decisions regarding their interest in Mercury Systems.
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