Science Applications International (NYSE:SAIC) Shares Gap Up Following Strong Earnings

Shares of Science Applications International Co. (NYSE:SAIC) gapped up prior to trading on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $104.43, but opened at $117.52. Science Applications International shares last traded at $117.18, with a volume of 358,864 shares trading hands.

The information technology services provider reported $2.57 EPS for the quarter, beating analysts’ consensus estimates of $2.00 by $0.57. The company had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.81 billion. Science Applications International had a net margin of 4.11% and a return on equity of 24.18%. During the same quarter last year, the firm posted $1.43 EPS. The company’s quarterly revenue was up 5.8% on a year-over-year basis.

Science Applications International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 25th. Investors of record on Friday, April 11th will be issued a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.29%. Science Applications International’s payout ratio is presently 24.96%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SAIC. StockNews.com upgraded shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, December 18th. Wells Fargo & Company reduced their price target on Science Applications International from $149.00 to $139.00 and set an “overweight” rating for the company in a research note on Wednesday, February 26th. UBS Group started coverage on shares of Science Applications International in a research report on Monday, December 2nd. They issued a “neutral” rating and a $134.00 target price for the company. JPMorgan Chase & Co. reduced their price target on Science Applications International from $170.00 to $148.00 and set an “overweight” rating on the stock in a research report on Friday, December 6th. Finally, TD Cowen cut shares of Science Applications International from a “buy” rating to a “hold” rating and dropped their target price for the company from $155.00 to $120.00 in a research report on Wednesday, January 8th. One analyst has rated the stock with a sell rating, five have issued a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $136.11.

Insiders Place Their Bets

In other Science Applications International news, Director Katharina G. Mcfarland sold 3,239 shares of the firm’s stock in a transaction on Monday, January 13th. The shares were sold at an average price of $117.70, for a total value of $381,230.30. Following the transaction, the director now directly owns 6,864 shares of the company’s stock, valued at approximately $807,892.80. This trade represents a 32.06 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Science Applications International

Large investors have recently added to or reduced their stakes in the business. Xponance Inc. raised its stake in Science Applications International by 1.5% in the fourth quarter. Xponance Inc. now owns 6,869 shares of the information technology services provider’s stock valued at $768,000 after purchasing an additional 99 shares in the last quarter. Town & Country Bank & Trust CO dba First Bankers Trust CO increased its stake in Science Applications International by 4.8% in the fourth quarter. Town & Country Bank & Trust CO dba First Bankers Trust CO now owns 2,186 shares of the information technology services provider’s stock valued at $244,000 after acquiring an additional 100 shares during the last quarter. Mariner LLC lifted its position in Science Applications International by 2.8% in the 4th quarter. Mariner LLC now owns 3,875 shares of the information technology services provider’s stock worth $433,000 after buying an additional 106 shares during the last quarter. Pictet Asset Management Holding SA grew its position in Science Applications International by 2.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 7,029 shares of the information technology services provider’s stock valued at $786,000 after acquiring an additional 142 shares during the last quarter. Finally, Jones Financial Companies Lllp grew its holdings in shares of Science Applications International by 32.3% during the 4th quarter. Jones Financial Companies Lllp now owns 639 shares of the information technology services provider’s stock valued at $71,000 after purchasing an additional 156 shares during the last quarter. Institutional investors own 76.00% of the company’s stock.

Science Applications International Stock Performance

The business’s 50-day moving average is $107.44 and its 200 day moving average is $123.10. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.87 and a current ratio of 0.87. The company has a market cap of $5.61 billion, a PE ratio of 19.35 and a beta of 0.66.

Science Applications International Company Profile

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company's offerings include IT modernization; digital engineering; artificial intelligence; Weapon systems support design, build, modify, integrate, and sustain weapon systems; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers' IT infrastructure, as well as training and simulation and ground vehicles support which integrates, modify, upgrades, and sustains ground vehicles for nation's armed forces.