Science Applications International (NYSE:SAIC) Shares Gap Up on Better-Than-Expected Earnings

Science Applications International Co. (NYSE:SAIC)’s share price gapped up before the market opened 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.

The information technology services provider reported $2.57 EPS for the quarter, beating analysts’ consensus estimates of $2.00 by $0.57. Science Applications International had a return on equity of 24.18% and a net margin of 4.11%. The business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.81 billion. During the same quarter last year, the company earned $1.43 earnings per share. The business’s revenue for the quarter was up 5.8% compared to the same quarter last year.

Science Applications International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Shareholders of record on Friday, April 11th will be given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 1.29%. Science Applications International’s payout ratio is currently 24.96%.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. StockNews.com raised shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a report on Wednesday, December 18th. The Goldman Sachs Group cut their price target on Science Applications International from $124.00 to $103.00 and set a “sell” rating on the stock in a report on Thursday, December 12th. UBS Group started coverage on Science Applications International in a research note on Monday, December 2nd. They set a “neutral” rating and a $134.00 price objective for the company. Wells Fargo & Company lowered their price target on shares of Science Applications International from $149.00 to $139.00 and set an “overweight” rating for the company in a research report on Wednesday, February 26th. Finally, TD Cowen downgraded shares of Science Applications International from a “buy” rating to a “hold” rating and cut their price objective for the company from $155.00 to $120.00 in a research report on Wednesday, January 8th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $136.11.

Insiders Place Their Bets

In related news, Director Katharina G. Mcfarland sold 3,239 shares of the company’s stock in a transaction on Monday, January 13th. The stock was sold at an average price of $117.70, for a total value of $381,230.30. Following the completion of the transaction, the director now directly owns 6,864 shares in the company, valued at approximately $807,892.80. This represents a 32.06 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.67% of the company’s stock.

Institutional Investors Weigh In On Science Applications International

Several institutional investors and hedge funds have recently made changes to their positions in SAIC. Fuller & Thaler Asset Management Inc. raised its holdings in shares of Science Applications International by 27.0% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,186,547 shares of the information technology services provider’s stock valued at $244,412,000 after buying an additional 464,989 shares during the last quarter. State Street Corp lifted its position in shares of Science Applications International by 1.0% during the third quarter. State Street Corp now owns 1,577,757 shares of the information technology services provider’s stock worth $219,734,000 after purchasing an additional 15,166 shares in the last quarter. First Trust Advisors LP grew its stake in shares of Science Applications International by 0.3% during the fourth quarter. First Trust Advisors LP now owns 1,218,137 shares of the information technology services provider’s stock valued at $136,163,000 after purchasing an additional 3,078 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Science Applications International by 1.9% in the third quarter. Geode Capital Management LLC now owns 985,105 shares of the information technology services provider’s stock valued at $137,227,000 after purchasing an additional 18,102 shares in the last quarter. Finally, Norges Bank bought a new position in Science Applications International during the fourth quarter worth about $63,572,000. Institutional investors and hedge funds own 76.00% of the company’s stock.

Science Applications International Price Performance

The company has a 50-day moving average price of $107.44 and a 200-day moving average price of $123.10. The company has a market capitalization of $5.61 billion, a price-to-earnings ratio of 19.35 and a beta of 0.66. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.87 and a current 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.