Mercury Systems (NASDAQ: MRCY) CEO sells 160K shares after option exercise
Rhea-AI Filing Summary
MERCURY SYSTEMS INC (MRCY) reported that Chairman, President & CEO William L. Ballhaus exercised employee stock options covering 222,152 shares of common stock at an exercise price of $43.00 per share on August 25–26, 2026, from grants scheduled to expire on August 17, 2027. He then sold a total of 160,166 shares of common stock in multiple trades at weighted average prices between roughly $87.09 and $89.74 per share. A footnote states these sales were intended solely to cover the exercise price, applicable withholding taxes and related transaction costs of the options exercised on the same dates. 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
10 txns
Insider
Ballhaus William L
Role
Chairman, President & CEO
Sold
160,166 shs ($14.05M)
Approx. gross sale proceeds
$14.05M
Approx. exercise cost
$9.55M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (Right to Buy) F1 | 68,476 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 68,476 | $43.00 | $2.94M |
| Sale | Common Stock F2, F5 | 38,276 | $88.913 | $3.40M |
| Sale | Common Stock F2, F6 | 10,814 | $89.744 | $970K |
| Exercise | Employee Stock Option (Right to Buy) F1 | 153,676 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 153,676 | $43.00 | $6.61M |
| Sale | Common Stock F2, F3 | 107,628 | $87.089 | $9.37M |
| Sale | Common Stock F2, F4 | 3,448 | $87.993 | $303K |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Employee Stock Option (Right to Buy) — 0 shares (Direct);
Common Stock — 361,822.325 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 $86.800 to $87.800. 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 $87.820 to $88.325. 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 $88.500 to $89.435. 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 $89.560 to $89.960. 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
Options exercised: 222,152 shares
Option exercise price: $43.00 per share
Shares sold: 160,166 shares
+5 more
8 metrics
Options exercised
222,152 shares
Employee stock options exercised on August 25–26, 2026
Option exercise price
$43.00 per share
Exercise price for employee stock options expiring August 17, 2027
Shares sold
160,166 shares
Common stock sales on August 25–26, 2026
Sale price 1
$87.0890 per share
Weighted average sale price for 107,628 shares on August 25, 2026
Sale price 2
$88.9130 per share
Weighted average sale price for 38,276 shares on August 26, 2026
Sale price 3
$89.7440 per share
Weighted average sale price for 10,814 shares on August 26, 2026
Indirect 401(k) holdings
1,403 shares
Common stock held indirectly through a 401(k) Plan as of August 25, 2026
Indirect LLC holdings
7,066.173 shares
Common stock held indirectly by Milestone Road Holdings, LLC as of August 25, 2026
Key Terms
Employee Stock Option, withholding taxes, weighted average, 401K Plan, +1 more
5 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.
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 financial
"The price reported above reflects the weighted average purchase price."
A weighted average is a way of calculating an overall number when some items matter more than others by giving each item a different level of importance, or weight. Investors use weighted averages to combine figures like prices, returns or earnings so the result reflects the size or significance of each part — like grading a class where a final exam counts more than a quiz, producing a score that better represents true 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 MRCY’s CEO William L. Ballhaus do in this Form 4 filing?
William L. Ballhaus exercised 222,152 stock options at an exercise price of $43.00 per share and sold 160,166 shares of Mercury Systems common stock in market transactions on August 25–26, 2026.
How many MRCY stock options did the CEO exercise and at what price?
He exercised employee stock options covering a total of 222,152 shares of Mercury Systems common stock at an exercise price of $43.00 per share. The options were scheduled to expire on August 17, 2027.
Does the Form 4 indicate any 10b5-1 trading plan for these MRCY transactions?
The Rule 10b5-1 checkbox is not marked, and no footnote references a 10b5-1 trading plan, so the filing does not indicate that these transactions were executed under such a pre-arranged plan.
What indirect MRCY holdings does the CEO report after these transactions?
Indirect holdings reported include 1,403 shares held through a 401(k) Plan and 7,066.173 shares held by Milestone Road Holdings, LLC as of August 25, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
