Science Applications International (NASDAQ:SAIC) Reaches New 12-Month High - Still a Buy?

Key Points

• SAIC shares reached a new 52-week high, trading as high as $153 and most recently at $150.52. The stock’s consensus rating remains “Hold,” with an average price target of $125.22, below its current level.
• The company reported a strong quarter, earning $3.01 per share versus analysts’ $2.31 estimate and generating $1.88 billion in revenue, up 6.3% year over year. SAIC also pays a quarterly dividend of $0.37 per share, equating to a 1.0% yield.
• Institutional investors own 76% of SAIC, with several major funds recently increasing their positions. Director C. David Cush also purchased 1,000 shares at an average price of $132.50.

Science Applications International Corporation (NASDAQ:SAIC - Get Free Report) shares hit a new 52-week high on Thursday. The stock traded as high as $153.00 and last traded at $150.52, with a volume of 21,382 shares changing hands. The stock had previously closed at $148.93.

Wall Street Analyst Weigh In

SAIC has been the topic of several analyst reports. Weiss Ratings raised Science Applications International from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 9th. UBS Group lifted their target price on Science Applications International from $108.00 to $123.00 and gave the stock a "neutral" rating in a report on Tuesday, September 1st. Wall Street Zen raised Science Applications International from a "buy" rating to a "strong-buy" rating in a research report on Sunday, September 27th. Truist Financial upped their target price on shares of Science Applications International from $110.00 to $130.00 and gave the company a "hold" rating in a research note on Tuesday, September 1st. Finally, The Goldman Sachs Group boosted their price objective on shares of Science Applications International from $93.00 to $103.00 and gave the company a "sell" rating in a report on Tuesday, September 8th. Two investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $125.22.

Science Applications International Stock Performance

The business's 50-day moving average price is $131.51 and its 200-day moving average price is $110.57. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.20 and a current ratio of 1.20. The stock has a market cap of $6.23 billion, a P/E ratio of 17.38 and a beta of 0.31.

Science Applications International (NASDAQ:SAIC - Get Free Report) last announced its earnings results on Monday, August 31st. The company reported $3.01 EPS for the quarter, topping analysts' consensus estimates of $2.31 by $0.70. The company had revenue of $1.88 billion for the quarter, compared to analysts' expectations of $1.76 billion. Science Applications International had a return on equity of 34.68% and a net margin of 5.13%. Science Applications International's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $3.63 EPS. As a group, sell-side analysts expect that Science Applications International Corporation will post 10.77 earnings per share for the current fiscal year.

Science Applications International Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 9th were given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, October 9th. Science Applications International's payout ratio is presently 17.31%.

Insider Buying and Selling

In other news, Director C. David Cush purchased 1,000 shares of the stock in a transaction on Tuesday, September 22nd. The shares were acquired at an average price of $132.50 per share, with a total value of $132,500.00. Following the completion of the acquisition, the director directly owned 1,000 shares of the company's stock, valued at $132,500. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.65% of the company's stock.

Institutional Trading of Science Applications International

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp bought a new position in Science Applications International during the 2nd quarter valued at about $44,044,000. Dimensional Fund Advisors LP lifted its stake in Science Applications International by 13.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,535,288 shares of the company's stock worth $145,730,000 after purchasing an additional 185,066 shares during the last quarter. International Assets Investment Management LLC lifted its stake in Science Applications International by 4,112.1% in the third quarter. International Assets Investment Management LLC now owns 85,000 shares of the company's stock worth $10,843,000 after purchasing an additional 82,982 shares during the last quarter. Fifth Third Bancorp boosted its position in shares of Science Applications International by 13,176.6% during the first quarter. Fifth Third Bancorp now owns 63,064 shares of the company's stock valued at $5,986,000 after buying an additional 62,589 shares during the period. Finally, Bank of America Corp DE boosted its position in shares of Science Applications International by 17.5% during the first quarter. Bank of America Corp DE now owns 380,538 shares of the company's stock valued at $36,121,000 after buying an additional 56,720 shares during the period. 76.00% of the stock is owned by hedge funds and other institutional investors.

Science Applications International Company Profile

Science Applications International Corporation (SAIC) is a technology integrator and professional services company that supports the U.S. government and its missions. The company provides information technology modernization, systems engineering, mission support, enterprise transformation, and program management services to defense, intelligence, space, federal civilian, and national security customers.

SAIC's capabilities include cloud computing, artificial intelligence and machine learning, cybersecurity, software development, data analytics, digital engineering, network modernization, and IT infrastructure management.

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