Science Applications International Co. Receives “Hold” Rating from Analysts

Science Applications International Co. (NYSE:SAIC) has been assigned a consensus rating of “Hold” by eleven research firms tracking the company, according to MarketBeat Ratings. The breakdown of ratings includes one analyst issuing a sell rating, seven assigning a hold rating, and three providing a buy rating. Analysts project an average 12-month price target of approximately $116.91 for the stock.

Several notable research updates have emerged recently. On December 8, 2023, UBS Group raised its price target from $110.00 to $113.00 while maintaining a “neutral” rating. In contrast, Citigroup initiated coverage on December 12 with a buy rating and a target price of $122.00. Meanwhile, Jefferies Financial Group adjusted its estimate downward from $130.00 to $115.00 and issued a “hold” rating on September 10. In a report dated September 8, Goldman Sachs Group lowered its price objective from $104.00 to $91.00, recommending a sell rating. Additionally, JPMorgan Chase & Co. updated its target from $115.00 to $125.00 and reiterated a “neutral” rating on December 5.

Institutional Investors Adjust Positions

Institutional investors have recently modified their stakes in Science Applications International. Notably, LSV Asset Management increased its holdings by 143.2% in the second quarter, acquiring an additional 766,734 shares for a total of 1,302,029 shares valued at approximately $146.6 million. Norges Bank also entered a new position in the same quarter, valued at around $81.1 million.

Other significant changes include AQR Capital Management LLC, which boosted its holdings by 115.8% in the first quarter, bringing its total to 956,438 shares worth about $107.4 million. Similarly, Arrowstreet Capital Limited Partnership raised its stake by 78.2% in the second quarter to own 902,302 shares valued at around $101.6 million. Overall, hedge funds and institutional investors hold approximately 76.00% of SAIC’s stock.

Stock Performance and Financial Highlights

As of Tuesday, SAIC shares opened at $101.22, reflecting a modest increase of 0.6%. The company has a fifty-day moving average of $94.39 and a two-hundred-day moving average of $103.85. Over the past year, the stock has fluctuated between a low of $84.15 and a high of $124.11. Currently, SAIC boasts a market capitalization of $4.57 billion, a price-to-earnings ratio of 17.07, and a beta of 0.30. The firm’s debt-to-equity ratio stands at 1.20, with both current and quick ratios at 0.87.

SAIC recently reported its quarterly earnings on December 4, 2023, revealing earnings per share (EPS) of $2.58, surpassing the consensus estimate of $2.07 by $0.51. The firm recorded a net margin of 4.11% and a return on equity of 24.18%, with revenue remaining steady at $1.87 billion for the quarter, matching analyst expectations. Compared to the previous year, SAIC’s revenue fell by 5.6%.

Looking ahead, SAIC has set its fiscal year 2026 guidance at an EPS range of $9.80 to $10.00. Analysts anticipate that the company will report earnings of $8.27 per share for the current year.

In addition to financial updates, SAIC announced a quarterly dividend to be distributed on January 28, 2024. Shareholders of record on January 14 will receive a dividend of $0.37 per share, translating to an annualized dividend of $1.48 and a yield of 1.5%. The ex-dividend date is also set for January 14, with the company maintaining a dividend payout ratio of 18.93%.

Founded in 1969 by J. Robert Beyster, Science Applications International Corp. specializes in delivering a wide range of engineering and information technology services, primarily to U.S. government clients. The company is known for its support in defense, intelligence, federal civilian, health, and energy sectors, providing solutions that cater to mission-critical requirements. Its core competencies extend across systems engineering, IT modernization, cloud computing, cybersecurity, data analytics, and artificial intelligence.

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