Will Mercury Systems (MRCY) Bounce Back?

Conestoga Capital Advisors, an asset management company, released its “Small Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. The fund declined 4.56% net of fees in the third quarter, compared to a 0.24% return for Russell 2000 Growth Index. Stock selection and negative sector allocation impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in its Q3 2022 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves the defense and aerospace industries. On December 15, 2022, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $47.47 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was -4.63%, and its shares lost 6.96% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.752 billion.

Conestoga Capital Advisors made the following comment about Mercury Systems, Inc. (NASDAQ:MRCY) in its Q3 2022 investor letter:

“Mercury Systems, Inc. (NASDAQ:MRCY): After reiterating full year guidance, which implied an outsized fiscal fourth quarter, MRCY reported fourth quarter results that fell short of expectations. Further, MRCY gave initial FY23 guidance with revenue inline, but adjusted EBITDA below expectations. Free cash flow also remained weak, an issue MRCY has said should reverse this fiscal year. A positive was bookings, which jumped 27% in the quarter, giving MRCY above average backlog visibility into this fiscal year. Defense spending remains healthy, which should benefit MRCY.”

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 third quarter, which was 19 in the previous quarter.

We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared Aristotle Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.