Science Applications International (NYSE:SAIC) Shares Gap Down on Disappointing Earnings

Shares of Science Applications International Co. (NYSE:SAIC - Get Free Report) gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $115.54, but opened at $105.21. Science Applications International shares last traded at $103.21, with a volume of 314,605 shares traded.

The information technology services provider reported $1.92 earnings per share for the quarter, missing analysts' consensus estimates of $2.17 by ($0.25). Science Applications International had a return on equity of 24.18% and a net margin of 4.11%. During the same period last year, the firm posted $1.92 earnings per share. The firm's revenue was up 1.6% compared to the same quarter last year.

Science Applications International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Stockholders of record on Friday, July 11th will be paid a $0.37 dividend. The ex-dividend date is Friday, July 11th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.43%. Science Applications International's payout ratio is presently 20.58%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on SAIC shares. Cantor Fitzgerald upgraded Science Applications International to a "hold" rating in a research note on Tuesday, February 25th. Truist Financial dropped their price objective on Science Applications International from $115.00 to $100.00 and set a "hold" rating on the stock in a research note on Tuesday. JPMorgan Chase & Co. lowered their price target on Science Applications International from $148.00 to $140.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 15th. UBS Group lowered their price target on Science Applications International from $121.00 to $111.00 and set a "neutral" rating on the stock in a research note on Tuesday. Finally, Wells Fargo & Company lowered their price target on Science Applications International from $148.00 to $132.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 8th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $128.20.

Insider Buying and Selling

In related news, Director Garth Graham purchased 215 shares of the firm's stock in a transaction dated Monday, April 14th. The stock was bought at an average price of $116.75 per share, with a total value of $25,101.25. Following the completion of the purchase, the director now owns 7,159 shares in the company, valued at approximately $835,813.25. This represents a 3.10% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Carolyn B. Handlon purchased 230 shares of the firm's stock in a transaction dated Monday, April 7th. The stock was bought at an average cost of $109.93 per share, with a total value of $25,283.90. Following the purchase, the director now owns 4,032 shares of the company's stock, valued at approximately $443,237.76. This trade represents a 6.05% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased 3,260 shares of company stock valued at $365,037 over the last 90 days. 0.44% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Science Applications International

Institutional investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. boosted its position in shares of Science Applications International by 14.3% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 2,500,086 shares of the information technology services provider's stock worth $280,685,000 after purchasing an additional 313,539 shares in the last quarter. First Trust Advisors LP boosted its position in shares of Science Applications International by 0.3% during the 4th quarter. First Trust Advisors LP now owns 1,218,137 shares of the information technology services provider's stock worth $136,163,000 after purchasing an additional 3,078 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Science Applications International by 2.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,141,923 shares of the information technology services provider's stock worth $128,202,000 after purchasing an additional 30,343 shares in the last quarter. AQR Capital Management LLC grew its position in Science Applications International by 115.8% in the 1st quarter. AQR Capital Management LLC now owns 956,438 shares of the information technology services provider's stock valued at $107,379,000 after purchasing an additional 513,192 shares during the period. Finally, Invesco Ltd. grew its position in Science Applications International by 124.8% in the 1st quarter. Invesco Ltd. now owns 874,595 shares of the information technology services provider's stock valued at $98,191,000 after purchasing an additional 485,496 shares during the period. 76.00% of the stock is owned by institutional investors and hedge funds.

Science Applications International Trading Up 3.2%

The firm's 50-day moving average is $117.06 and its 200-day moving average is $113.23. 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 firm has a market cap of $4.94 billion, a price-to-earnings ratio of 17.44 and a beta of 0.55.

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.