On September 6, 2023, Christopher Cambria, the Executive Vice President, General Counsel, and Secretary of Mercury Systems Inc (MRCY, Financial), sold 1,508 shares of the company. This move is part of a series of insider transactions that have been taking place at Mercury Systems Inc over the past year.
Mercury Systems Inc is a leading commercial provider of secure sensor and safety-critical processing subsystems. Optimized for customer and mission success, Mercury's solutions power a wide variety of critical defense and intelligence programs. The company's solutions support a wide variety of critical defense and intelligence programs that are the foundation of the defense systems and services.
Over the past year, the insider has sold a total of 4,480 shares and has not made any purchases. This recent sale represents a significant portion of the insider's transactions over the past year.
The insider transaction history for Mercury Systems Inc shows a trend of more insider sells than buys. Over the past year, there have been 4 insider buys and 18 insider sells. This could indicate that insiders believe the stock is currently overvalued, leading them to sell their shares.
On the day of the insider's recent sell, shares of Mercury Systems Inc were trading for $36.65 apiece, giving the stock a market cap of $2.112 billion.
The GuruFocus Value of Mercury Systems Inc is $56.12, which means the stock has a price-to-GF-Value ratio of 0.65. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
The above image shows the trend of insider transactions at Mercury Systems Inc. The number of sells by insiders has been significantly higher than the number of buys over the past year.
The above image shows the GF Value of Mercury Systems Inc. Despite the stock's current price being lower than its GF Value, the high number of insider sells could indicate that insiders believe the stock is overvalued.
In conclusion, while the stock's price-to-GF-Value ratio suggests it could be a value trap, the high number of insider sells could indicate that insiders believe the stock is overvalued. Investors should carefully consider these factors before making an investment decision.
