Up 89% Year-To-Date, Advisory Firm Trims Back Holdings of Aerospace Tech Stock
Key Points
Sold 279,026 Mercury Systems shares; estimated transaction value of $17.35 million, based on the quarterly average price for Q3 2025
Post-trade position: 2,279,909 shares valued at $176.46 million as of the third quarter
Mercury Systems stake now represents 2.83% of fund AUM, outside the top five holdings
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Conestoga Capital Advisors, LLC disclosed in an October 24, 2025, SEC filing the sale of 279,026 shares of Mercury Systems (NASDAQ:MRCY), totaling $17,348,965.
What Happened
Conestoga Capital Advisors reported a reduction of 279,026 shares in its position in Mercury Systems, according to a U.S. Securities and Exchange Commission (SEC) 13F filing dated October 24, 2025 (link). The shares sold were valued at an estimated $17.35 million. The fund now holds 2,279,909 shares.
What Else to Know
The sale reduced Mercury Systems to 2.83% of Conestoga's reportable assets under management.
Top five fund holdings after the filing:
- NASDAQ:CWST: $272.88 million (4.4% of AUM) as of September 30, 2025
- NASDAQ:ROAD: $270.75 million (4.3% of AUM) as of September 30, 2025
- NASDAQ:DSGX: $248.34 million (4.0% of AUM) as of September 30, 2025
- NYSE:RBC: $244.30 million (3.9% of AUM) as of September 30, 2025
- NASDAQ:FSV: $233.02 million (3.7% of AUM) as of September 30, 2025
As of October 23, 2025, Mercury Systems shares were priced at $77.60, up 129.6% year-over-year; shares have outperformed the S&P 500 by 111.01 percentage points over the year.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-10-23) | $77.60 |
| Market Capitalization | $4.76 billion |
| Revenue (TTM) | $912.02 million |
| One-Year Price Change | 129.59% |
Company Snapshot
Mercury Systems manufactures and sells components, products, modules, and subsystems for the aerospace and defense industry, such as embedded processing modules and RF/microwave systems. The company leverages deep engineering expertise and a broad product portfolio to address complex defense and intelligence requirements.
The company offers embedded processing modules, RF and microwave components, subsystems, and integrated solutions for aerospace and defense applications. It generates revenue by designing, manufacturing, and selling advanced electronics and subsystems to defense contractors and commercial aviation clients.
Mercury Systems serves approximately 300 programs with 25 major defense contractors and commercial aviation customers in the United States, Europe, and Asia Pacific.
Foolish Take
What does the recent sale of more than $17.3 million worth of Mercury Systems stock by Conestoga Capital Advisors tell retail investors? Here's what I think.
First off, don't let the big number fool you -- $17.3 million is a lot of money, but Conestoga retains more than $137 million worth of Mercury Systems stock. Indeed, this sale only reduced its share count in Mercury Systems by about 11%.
Second, Mercury Systems' recent stock performance is almost certainly a factor here too. Shares of the company have advanced by 89% year-to-date, trouncing the S&P 500's 17% performance. This stellar performance means that this sale is likely just prudent profit-taking -- not a referendum on Mercury Systems stock.
In summary, investors should take note of this sale -- but not as a bearish indicator. Instead, average investors may want to leverage this large transaction as a gateway to learn more about this unique defense contractor and its stock which has soared by nearly 100% this year alone.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose in quarterly SEC Form 13F filings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Embedded processing modules: Specialized computer hardware designed for dedicated tasks within larger electronic systems, often used in aerospace and defense.
RF and microwave components: Electronic parts that operate using radio frequency or microwave signals, crucial for radar and communications in defense systems.
Subsystems: Smaller, self-contained systems that function as part of a larger, more complex system.
Defense contractors: Companies that provide products or services to military or government defense agencies.
Integrated solutions: Combined sets of products and services designed to work together to address complex customer needs.
Quarterly average price: The average trading price of a security over a specific quarter, used for valuation in reporting.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a given period.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Descartes Systems Group. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy.
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