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

Science Applications International Co. (NYSE:SAIC - Get Free Report)'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.

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 return on equity of 24.18% and a net margin of 4.11%. The firm had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.81 billion. During the same quarter in the prior year, the firm posted $1.43 earnings per share. 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. Shareholders of record on Friday, April 11th will be given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.40%. The ex-dividend date is Friday, April 11th. Science Applications International's payout ratio is 20.58%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SAIC. UBS Group raised their target price on Science Applications International from $123.00 to $126.00 and gave the stock a "neutral" rating in a research note on Tuesday. JPMorgan Chase & Co. cut their price objective on Science Applications International from $170.00 to $148.00 and set an "overweight" rating on the stock in a research report on Friday, December 6th. Wells Fargo & Company upped their target price on Science Applications International from $139.00 to $148.00 and gave the company an "overweight" rating in a report on Tuesday. StockNews.com raised Science Applications International from a "buy" rating to a "strong-buy" rating in a research note on Wednesday, December 18th. Finally, TD Cowen lowered shares of Science Applications International from a "buy" rating to a "hold" rating and decreased their price objective for the stock from $155.00 to $120.00 in a report on Wednesday, January 8th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $134.00.

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Insiders Place Their Bets

In other news, Director Katharina G. Mcfarland sold 3,239 shares of the company'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 of the company's stock, valued at $807,892.80. This represents a 32.06 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.67% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Fuller & Thaler Asset Management Inc. increased its stake in shares of Science Applications International by 27.0% during the fourth 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 purchasing an additional 464,989 shares in the last quarter. State Street Corp grew its stake in shares of Science Applications International by 1.0% in the 3rd quarter. State Street Corp now owns 1,577,757 shares of the information technology services provider's stock worth $219,734,000 after buying an additional 15,166 shares during the last quarter. First Trust Advisors LP increased its position in 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 valued at $136,163,000 after buying an additional 3,078 shares in the last quarter. Geode Capital Management LLC raised its stake in Science Applications International by 1.9% during the third quarter. Geode Capital Management LLC now owns 985,105 shares of the information technology services provider's stock valued at $137,227,000 after buying an additional 18,102 shares during the last quarter. Finally, Norges Bank bought a new stake in Science Applications International in the fourth quarter worth $63,572,000. 76.00% of the stock is owned by hedge funds and other institutional investors.

Science Applications International Stock Performance

The company has a debt-to-equity ratio of 1.20, a current ratio of 0.87 and a quick ratio of 0.87. The business has a 50 day moving average price of $107.21 and a 200 day moving average price of $122.67. The stock has a market capitalization of $5.18 billion, a PE ratio of 17.86 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.