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

Science Applications International Co. (NYSE:SAIC)’s stock 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 traded.

The information technology services provider reported $2.57 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $1.81 billion. During the same quarter last year, the business posted $1.43 EPS. The business’s quarterly revenue 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. Stockholders of record on Friday, April 11th will be issued a $0.37 dividend. The ex-dividend date is Friday, April 11th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.32%. Science Applications International’s payout ratio is 24.96%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on SAIC shares. Wells Fargo & Company cut their target price on Science Applications International from $149.00 to $139.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 26th. JPMorgan Chase & Co. lowered their target price on shares of Science Applications International from $170.00 to $148.00 and set an “overweight” rating for the company in a report on Friday, December 6th. TD Cowen lowered shares of Science Applications International from a “buy” rating to a “hold” rating and cut their price target for the stock from $155.00 to $120.00 in a research note on Wednesday, January 8th. UBS Group assumed coverage on shares of Science Applications International in a research note on Monday, December 2nd. They issued a “neutral” rating and a $134.00 price objective for the company. Finally, Cantor Fitzgerald upgraded Science Applications International to a “hold” rating in a research report on Tuesday, February 25th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $136.11.

Insider Activity

In other news, Director Katharina G. Mcfarland sold 3,239 shares of the stock in a transaction that occurred 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 sale, the director now directly owns 6,864 shares in the company, valued at $807,892.80. This represents a 32.06 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.67% of the company’s stock.

Institutional Trading of Science Applications International

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Cornerstone Planning Group LLC acquired a new position in Science Applications International in the 4th quarter valued at about $28,000. True Wealth Design LLC acquired a new position in shares of Science Applications International in the fourth quarter valued at approximately $48,000. Quarry LP purchased a new position in shares of Science Applications International during the third quarter valued at approximately $71,000. Kapitalo Investimentos Ltda purchased a new position in shares of Science Applications International during the fourth quarter valued at approximately $58,000. Finally, Jones Financial Companies Lllp boosted its position in Science Applications International by 32.3% during the fourth quarter. Jones Financial Companies Lllp now owns 639 shares of the information technology services provider’s stock worth $71,000 after acquiring an additional 156 shares during the last quarter. 76.00% of the stock is currently owned by hedge funds and other institutional investors.

Science Applications International Price Performance

The company’s 50 day simple moving average is $107.40 and its 200 day simple moving average is $122.98. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.20. The stock has a market capitalization of $5.47 billion, a PE ratio of 18.87 and a beta of 0.66.

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.