Science Applications International (NYSE:SAIC) Shares Gap Down Following Weak Earnings

Science Applications International Co. (NYSE:SAIC)’s share price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $115.54, but opened at $105.21. Science Applications International shares last traded at $103.21, with a volume of 314,605 shares changing hands.

The information technology services provider reported $1.92 earnings per share for the quarter, missing analysts’ consensus estimates of $2.17 by ($0.25). Science Applications International had a return on equity of 24.18% and a net margin of 4.11%. The business’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period last year, the company earned $1.92 EPS.

Science Applications International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be issued a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 1.45%. Science Applications International’s dividend payout ratio (DPR) is presently 20.58%.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on SAIC. UBS Group increased their price objective on Science Applications International from $123.00 to $126.00 and gave the stock a “neutral” rating in a report on Tuesday, March 18th. JPMorgan Chase & Co. cut their target price on Science Applications International from $148.00 to $140.00 and set an “overweight” rating for the company in a research note on Tuesday, April 15th. Cantor Fitzgerald upgraded Science Applications International to a “hold” rating in a report on Tuesday, February 25th. Truist Financial reduced their price target on Science Applications International from $135.00 to $115.00 and set a “hold” rating on the stock in a report on Tuesday, March 18th. Finally, Wells Fargo & Company decreased their price target on shares of Science Applications International from $148.00 to $132.00 and set an “overweight” rating for the company in a research note on Tuesday, April 8th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Science Applications International has a consensus rating of “Hold” and a consensus price target of $131.20.

Insiders Place Their Bets

In other news, Director Milford W. Mcguirt bought 500 shares of the firm’s stock in a transaction that occurred on Thursday, March 27th. The stock was purchased at an average cost of $110.58 per share, for a total transaction of $55,290.00. Following the purchase, the director now directly owns 6,841 shares in the company, valued at approximately $756,477.78. This trade represents a 7.89% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John K. Tien, Jr. acquired 215 shares of the firm’s stock in a transaction on Wednesday, April 2nd. The stock was purchased at an average price of $116.50 per share, for a total transaction of $25,047.50. Following the acquisition, the director now directly owns 919 shares in the company, valued at $107,063.50. This represents a 30.54% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 3,260 shares of company stock worth $365,037. 0.44% of the stock is currently owned by company insiders.

Institutional Trading of Science Applications International

Hedge funds have recently made changes to their positions in the business. Cornerstone Planning Group LLC purchased a new position in Science Applications International during the 4th quarter worth $28,000. Parallel Advisors LLC lifted its stake in shares of Science Applications International by 112.1% in the first quarter. Parallel Advisors LLC now owns 280 shares of the information technology services provider’s stock worth $31,000 after acquiring an additional 148 shares in the last quarter. Larson Financial Group LLC raised its position in shares of Science Applications International by 43.2% during the 1st quarter. Larson Financial Group LLC now owns 325 shares of the information technology services provider’s stock valued at $36,000 after acquiring an additional 98 shares in the last quarter. US Bancorp DE grew its holdings in Science Applications International by 38.5% in the 1st quarter. US Bancorp DE now owns 324 shares of the information technology services provider’s stock worth $36,000 after buying an additional 90 shares in the last quarter. Finally, True Wealth Design LLC bought a new stake in Science Applications International in the fourth quarter worth about $48,000. Institutional investors and hedge funds own 76.00% of the company’s stock.

Science Applications International Price Performance

The stock’s fifty day moving average price is $117.25 and its 200-day moving average price is $113.39. The firm has a market cap of $4.89 billion, a price-to-earnings ratio of 17.31 and a beta of 0.55. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.87 and a quick ratio of 0.87.

About Science Applications International

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.