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

Science Applications International Co. (NYSE:SAIC)’s share price gapped up prior to trading on Monday following a better than expected earnings announcement. 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 earnings per share for the quarter, beating analysts’ consensus estimates of $2.00 by $0.57. Science Applications International had a net margin of 4.11% and a return on equity of 24.18%. The company had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.81 billion. During the same period last year, the firm earned $1.43 earnings per share. The firm’s 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. Stockholders of record on Friday, April 11th will be paid a $0.37 dividend. The ex-dividend date of this dividend is Friday, April 11th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.30%. Science Applications International’s payout ratio is presently 24.96%.

Analysts Set New Price Targets

A number of analysts recently commented on the company. JPMorgan Chase & Co. dropped their price target on Science Applications International from $170.00 to $148.00 and set an “overweight” rating on the stock in a report on Friday, December 6th. Wells Fargo & Company boosted their price target on shares of Science Applications International from $139.00 to $148.00 and gave the stock an “overweight” rating in a report on Tuesday. TD Cowen lowered shares of Science Applications International from a “buy” rating to a “hold” rating and reduced their price target for the company from $155.00 to $120.00 in a research report on Wednesday, January 8th. StockNews.com raised shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, December 18th. Finally, Truist Financial decreased their price target on shares of Science Applications International from $135.00 to $115.00 and set a “hold” rating for the company in a research note on Tuesday. One investment 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’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $134.00.

Insiders Place Their Bets

In other Science Applications International news, Director Katharina G. Mcfarland sold 3,239 shares of the business’s stock in a transaction on Monday, January 13th. The shares were sold at an average price of $117.70, for a total transaction of $381,230.30. Following the sale, the director now owns 6,864 shares of the company’s stock, valued at $807,892.80. The trade was a 32.06 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Science Applications International

Hedge funds have recently made changes to their positions in the stock. Wealth Enhancement Advisory Services LLC boosted its stake in Science Applications International by 139.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 9,865 shares of the information technology services provider’s stock worth $1,103,000 after purchasing an additional 5,750 shares during the period. NorthCrest Asset Manangement LLC lifted its holdings in shares of Science Applications International by 4.5% in the fourth quarter. NorthCrest Asset Manangement LLC now owns 7,325 shares of the information technology services provider’s stock worth $819,000 after buying an additional 314 shares in the last quarter. Wealthedge Investment Advisors LLC bought a new position in shares of Science Applications International in the fourth quarter valued at approximately $447,000. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in Science Applications International during the 4th quarter worth approximately $3,382,000. Finally, Jefferies Financial Group Inc. purchased a new stake in Science Applications International in the 4th quarter worth approximately $1,706,000. 76.00% of the stock is currently owned by hedge funds and other institutional investors.

Science Applications International Stock Up 1.4 %

The company’s 50 day simple moving average is $107.39 and its 200-day simple moving average is $122.86. 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 firm has a market capitalization of $5.55 billion, a PE ratio of 19.13 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.