BBIG - Mercury Systems (MRCY) Stock Falls on New Short Report
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Mercury Systems (NASDAQ:MRCY) stock is falling on Tuesday after getting hit with a short report from Glasshouse.
That coverage from Glasshouse has it kicking off MRCY stock with a “strong sell” rating. The firm also claims that investors will see the price of the company’s stock fall “precipitously over the next twelve months.”
So why exactly does Glasshouse have such a negative opinion of Mercury Systems? According to the firm, the company is a serial acquirer that uses its frequent acquisitions to cover up suspicious earnings and revenue data.
Glasshouse addresses the revenue sales growth seen by Mercury Systems with the following statement.
“Based on our analysis, we believe that much of the recent sales growth was attributable to prematurely recognizing revenue. With respect to the company’s already diminished cash flow figures, we believe stated free cash flow fails to consider the company’s delay of payment to suppliers and the massive amount of cash spent on acquisitions. When including these items, free-cash-flow would have been abysmal for FY2022 and prior.”
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Mercury Systems is a technology company that serves the aerospace and defense industry. Its focus is on developing and adapting commercial technology to future-proof aerospace and defense solutions.
Following today’s short report, MRCY stock is down 3.9%. However, shares are up 5.1% since the start of the year.
Investors looking for more recent stock market news are in luck!
InvestorPlace has all the latest stock news traders need to know about for Tuesday! That includes why shares of General Electric (NYSE:GE), Ayala Pharmaceuticals (NASDAQ:AYLA), and Vinco Ventures (NASDAQ:BBIG) stock are on the move today. You can learn all about that at the following links!
More Tuesday Stock Market News
- GE Stock Jumps 6% as General Electric Reports Positive Earnings
- Why Is Ayala Pharmaceuticals (AYLA) Stock Up 100%+ Today?
- Hostile Takeover Alert Sinks BBIG Stock
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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