Yahoo Finance Here’s Why Mercury Systems (MRCY) Fell in Q1
Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY), in the first quarter 2024 investor letter. Mercury Systems, Inc. (NASDAQ:MRCY), with a market capitalization of $1.9 billion, is a technology company that manufactures and sells components, products, modules, and subsystems for the aerospace and defense industries. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was 16.95%, and its shares lost 21.08% of their value over the last 52 weeks. On May 20, 2024, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $32.45 per share.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Mercury Systems, Inc. (NASDAQ:MRCY) in its first quarter 2024 investor letter:
"Mercury Systems, Inc. (NASDAQ:MRCY): MRCY is a leader in developing technologies for the aerospace and defense industry. MRCY is restructuring to more completely integrate and streamline the businesses acquired after a decade of active M&A. In addition, numerous development programs, which already carry low margins, have hit technical issues that have further depressed profitability. The recently appointed CEO has prioritized fixing these issues so that the programs can be completed and move to commercial production, which will reinvigorate growth and let margins expand. This comes at the expense of some near-term production, limiting near-term revenue growth."
A satellite in orbit, capturing the technological prowess of the aerospace & defense company.
Mercury Systems, Inc.'s (NASDAQ:MRCY) trailing 12 months revenue is $839.95 million. According to recent earnings call, Mercury Systems, Inc. (NASDAQ:MRCY) delivered $208 million of revenue in the first quarter, a decrease of $55 million compared to previous year same quarter.
Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of the fourth quarter which was 21 in the previous quarter.
In another article, we discussed Mercury Systems, Inc. (NASDAQ:MRCY) and shared the list of best small-cap defense stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
