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

Shares of Science Applications International Co. (NYSE:SAIC) gapped up before the market opened 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 traded.

The information technology services provider reported $2.57 earnings per share (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 company had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.81 billion. During the same period in the previous year, the company posted $1.43 earnings per share. Science Applications International’s revenue for the quarter was up 5.8% on a year-over-year basis.

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. 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 1.32%. Science Applications International’s dividend payout ratio (DPR) is currently 24.96%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SAIC shares. The Goldman Sachs Group reduced their price objective on shares of Science Applications International from $124.00 to $103.00 and set a “sell” rating for the company in a research report on Thursday, December 12th. StockNews.com upgraded Science Applications International from a “buy” rating to a “strong-buy” rating in a report on Wednesday, December 18th. Wells Fargo & Company reduced their target price on Science Applications International from $149.00 to $139.00 and set an “overweight” rating for the company in a report on Wednesday, February 26th. Cantor Fitzgerald upgraded Science Applications International to a “hold” rating in a research report on Tuesday, February 25th. Finally, JPMorgan Chase & Co. reduced their price objective on Science Applications International from $170.00 to $148.00 and set an “overweight” rating for the company in a research note on Friday, December 6th. One research analyst has rated the stock with a sell rating, five have given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Science Applications International has an average rating of “Hold” and an average price target of $136.11.

Insider Activity at Science Applications International

In related news, Director Katharina G. Mcfarland sold 3,239 shares of the business’s stock in a transaction dated 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 approximately $807,892.80. The trade was a 32.06 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Science Applications International

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in Science Applications International in the 4th quarter valued at approximately $63,572,000. Fuller & Thaler Asset Management Inc. raised its holdings in shares of Science Applications International by 27.0% in the 4th 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 period. Adage Capital Partners GP L.L.C. acquired a new position in Science Applications International during the 4th quarter worth about $34,909,000. AQR Capital Management LLC grew its position in Science Applications International by 68.4% in the 4th quarter. AQR Capital Management LLC now owns 443,246 shares of the information technology services provider’s stock valued at $49,413,000 after acquiring an additional 179,963 shares in the last quarter. Finally, Marshall Wace LLP purchased a new stake in Science Applications International during the fourth quarter worth about $18,694,000. 76.00% of the stock is owned by hedge funds and other institutional investors.

Science Applications International Price Performance

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

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.