Mercury Systems Inc (NASDAQ:MRCY) executive Wells Charles Roger IV, who serves as the company's Executive Vice President and Chief Operating Officer (EVP, COO), has sold a total of $53,146 worth of company stock, as revealed in a recent SEC filing. The transaction occurred on August 19, with the shares sold at a price of $39.4851 each.
The sale was part of a sell-to-cover program, which is typically used by executives to satisfy tax withholding obligations that arise upon the vesting of stock awards. This program allows for the automatic selling of a portion of vested shares to cover taxes, and the price per share of $39.4851 reflects the attributed price for all participants in the program on the date of the transaction.
Following the sale, Wells Charles Roger IV still holds a significant number of shares in the company, with 130,408 shares of common stock remaining in his direct ownership, according to the filing. Additionally, there are 1,533 shares held indirectly through a 401K Plan.
Investors and followers of Mercury Systems can stay updated on insider transactions like this one as they provide insights into executive confidence and company performance. Mercury Systems specializes in electronic components and accessories, with its headquarters located in Andover, Massachusetts.
In other recent news, Mercury Systems has reported record quarterly bookings of $284 million, contributing to an annual total of $1.02 billion. The company's revenue for the fourth quarter stood at $249 million, totaling $835 million for the full year. A notable increase in adjusted EBITDA was observed, rising 42% year-over-year to $31 million. Mercury Systems also reported an all-time high free cash flow of $61 million, with a backlog increase of 16%, reaching a record $1.3 billion. These recent developments suggest a solid performance for the aerospace and defense industry leader.
Mercury Systems has also secured multiple production orders, including a $13.2 million development award. The company anticipates flat top-line growth in FY '25 with an increase in run rate during the second half of the year. Management is planning to expand EBITDA margins and generate positive free cash flow in FY '25. Despite not providing detailed guidance for fiscal year 2025 at this time, Mercury Systems remains 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
Mercury Systems Inc (NASDAQ:MRCY) has recently been in the spotlight due to insider stock sales, but there's more to the company's financial health and future prospects than just these transactions. According to InvestingPro data, Mercury Systems has a market capitalization of $2.28 billion. Despite a challenging period with a negative revenue growth of 14.23% over the last twelve months as of Q4 2024, the company has managed to maintain a gross profit margin of 23.45%.
InvestingPro Tips for Mercury Systems suggest a mixed outlook. On one hand, analysts have revised their earnings downwards for the upcoming period, indicating potential concerns about the company's short-term profitability. On the other hand, Mercury Systems' liquid assets exceed its short-term obligations, which points to financial stability in meeting its immediate financial commitments. Moreover, the company is expected to turn profitable this year, which could signal an upcoming positive shift in its financial trajectory.
The company's stock performance also presents an interesting narrative. Despite a one-week price total return showing a dip of -4.44%, the longer-term returns paint a brighter picture. Mercury Systems has experienced a strong return over the last three months, with a 19.59% increase, and an even more impressive six-month price total return of 36.59%.
Investors considering Mercury Systems will find additional insights on the company's financial health and stock performance by accessing the full suite of InvestingPro Tips, which currently lists 9 additional tips for MRCY at https://www.investing.com/pro/MRCY. These tips provide a comprehensive analysis to help investors make informed decisions.
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