Mercury Systems (NASDAQ: MRCY) CEO sells shares to fund option exercise
Rhea-AI Filing Summary
MERCURY SYSTEMS INC (MRCY) reported that Chairman, President & CEO William L. Ballhaus exercised employee stock options for a total of 244,848 shares of common stock on August 21 and 24, 2026 at exercise prices of $42.00 and $43.00 per share. He then sold 173,209 shares of common stock in market transactions at weighted average prices ranging from the high $80s to low $90s per share; a footnote states these sales were intended solely to cover the option exercise price, applicable withholding taxes and related transaction costs. Following these transactions, indirect holdings reported include 1,403 shares in a 401(k) plan and 7,066.173 shares held by Milestone Road Holdings, LLC.
Positive
- None.
Negative
- None.
Insider Trade Summary
Exercise and sale activity reported; no spread calculated
Exercise and Sale
12 txns
Insider
Ballhaus William L
Role
Chairman, President & CEO
Sold
173,209 shs ($15.69M)
Approx. gross sale proceeds
$15.69M
Approx. exercise cost
$10.29M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (Right to Buy) F1 | 140,650 | $0.00 | $0.00 |
| Exercise | Employee Stock Option (Right to Buy) F1 | 11,348 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 140,650 | $42.00 | $5.91M |
| Exercise | Common Stock F1 | 11,348 | $43.00 | $488K |
| Sale | Common Stock F2, F5 | 105,471 | $89.473 | $9.44M |
| Sale | Common Stock F2, F6 | 2,738 | $90.60 | $248K |
| Exercise | Employee Stock Option (Right to Buy) F1 | 92,850 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 92,850 | $42.00 | $3.90M |
| Sale | Common Stock F2, F3 | 64,796 | $92.404 | $5.99M |
| Sale | Common Stock F2, F4 | 204 | $93.508 | $19K |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Employee Stock Option (Right to Buy) — 222,152 shares (Direct);
Common Stock — 299,836.325 shares (Direct);
Common Stock — 1,403 shares (Indirect, 401K Plan);
Common Stock — 7,066.173 shares (Indirect, By Milestone Road Holdings, LLC)
Footnotes (6)
- F1. Represents the exercise of a stock option award scheduled to expire on August 17, 2027.
- F2. Represents the sale of shares intended solely to cover the exercise price, applicable withholding taxes and related transaction costs of stock options exercised on the same date.
- F3. This transaction was executed in multiple trades at prices ranging from $92.300 to $92.910. The price reported above reflects the weighted average purchase price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F4. This transaction was executed in multiple trades at prices ranging from $93.505 to $93.680. The price reported above reflects the weighted average purchase price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F5. This transaction was executed in multiple trades at prices ranging from $89.170 to $90.150. The price reported above reflects the weighted average purchase price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F6. This transaction was executed in multiple trades at prices ranging from $90.250 to $90.735. The price reported above reflects the weighted average purchase price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
Key Figures
Total shares sold: 173,209 shares
Total options exercised: 244,848 shares
Option exercise price: $42.00 per share
+5 more
8 metrics
Total shares sold
173,209 shares
Total common stock sold on August 21 and 24, 2026
Total options exercised
244,848 shares
Shares acquired from employee stock option exercises on August 21 and 24, 2026
Option exercise price
$42.00 per share
Employee stock options exercised into common stock
Option exercise price
$43.00 per share
Employee stock options exercised into common stock
Weighted average sale price
$92.404 per share
Common stock sale of 64,796 shares on August 21, 2026 (footnote F3)
Weighted average sale price
$89.473 per share
Common stock sale of 105,471 shares on August 24, 2026 (footnote F5)
Indirect 401(k) holdings
1,403 shares
Common stock held indirectly in a 401(k) Plan as of August 21, 2026
Indirect LLC holdings
7,066.173 shares
Common stock held indirectly by Milestone Road Holdings, LLC as of August 21, 2026
Key Terms
Employee Stock Option, exercise price, withholding taxes, weighted average purchase price, +2 more
6 terms
Employee Stock Option financial
"security_title: "Employee Stock Option (Right to Buy)""
An employee stock option is a promise that lets a worker buy company shares later at a predetermined price, often after they stay for a certain period or meet performance goals — think of it like a coupon that locks in today's price for a future purchase. It matters to investors because options align employees’ incentives with company performance, can increase the number of shares outstanding (dilution) when exercised, and represent a compensation cost that affects reported profits and shareholder value.
exercise price financial
"cover the exercise price, applicable withholding taxes and related"
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
withholding taxes financial
"cover the exercise price, applicable withholding taxes and related"
Withholding taxes are amounts a payer or government takes out of payments — such as wages, interest, or dividends — before the recipient gets the money, functioning like a cashier keeping part of a bill to pay taxes on your behalf. For investors this matters because it reduces the cash they actually receive, affects net returns and yield calculations, and may require additional paperwork or treaty claims to recover or offset the withheld amount against final tax bills.
weighted average purchase price financial
"The price reported above reflects the weighted average purchase price."
The weighted average purchase price is the average cost per share you paid across multiple buys, calculated so larger purchases count more than smaller ones. Imagine buying apples at different prices: the overall price you effectively paid depends on how many apples you bought at each price. Investors use it to measure true cost basis, calculate gains or losses, decide when to sell, and manage taxes and portfolio performance.
401K Plan financial
"nature_of_ownership: "401K Plan""
A 401(k) plan is an employer-sponsored retirement savings account that lets workers set aside part of their paycheck into investments, often with tax breaks and sometimes with matching contributions from the employer. Think of it as a workplace piggy bank that grows through employee contributions, optional company top-ups, and market returns; it matters to investors because it shapes household retirement security, drives large flows of money into public markets, and affects a company’s compensation costs and ability to attract and keep talent.
derivative security financial
"transaction_code_description: "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
FAQ
What did William L. Ballhaus report in this Form 4 for MRCY?
William L. Ballhaus reported exercising stock options for 244,848 shares of Mercury Systems common stock and selling 173,209 shares in market transactions on August 21 and 24, 2026. The sales were described as intended solely to cover exercise price, withholding taxes and related transaction costs.
What option exercises did Ballhaus disclose for Mercury Systems (MRCY)?
He disclosed exercising employee stock options for 244,848 shares of Mercury Systems common stock, including 140,650 shares at a $42.00 exercise price, 11,348 shares at $43.00, and 92,850 shares at $42.00. A footnote states these options were scheduled to expire on August 17, 2027.
What Mercury Systems (MRCY) holdings does Ballhaus report after these transactions?
The filing shows indirect holdings of 1,403 shares of Mercury Systems common stock in a 401(k) Plan and 7,066.173 shares held by Milestone Road Holdings, LLC as of August 21, 2026. Direct post-transaction common stock balances are not specified in the data provided.
Were Ballhaus’s MRCY trades executed as multiple transactions within price ranges?
Yes. Footnotes state several sale transactions were executed in multiple trades within price ranges, including $92.300–$92.910, $93.505–$93.680, $89.170–$90.150, and $90.250–$90.735, with the reported prices reflecting weighted average prices.
AI-generated analysis. How Rhea-AI works. Not financial advice.
