Science Applications International (NYSE:SAIC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Science Applications has a large pipeline of new projects and continues to win more deals regularly. We believe the company is comfortably positioned, given its favored relationship with the DoD and the Department of Homeland Security. Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues. Moreover, government contracts improve the visibility of future revenue streams. Estimates have been stable lately ahead of the company’s Q3 earnings release. The company has positive record of earnings surprises in recent quarters. Nonetheless, Science Applications continues to witness increase in cost reimbursement type contracts compared with fixed price contract, which is expected to be a drag on margins. Though the company has been steadily winning federal contracts, these low-margin deals have been affecting its profitability. Shares underperformed the industry year-to-date.”
A number of other research firms have also recently weighed in on SAIC. Vertical Research cut Science Applications International from a “buy” rating to a “hold” rating and set a $80.00 price target on the stock. in a report on Tuesday, September 11th. Cowen restated a “hold” rating and issued a $82.00 price target on shares of Science Applications International in a report on Tuesday, September 11th. Wells Fargo & Co restated a “hold” rating and issued a $84.00 price target (down previously from $88.00) on shares of Science Applications International in a report on Monday, September 10th. Drexel Hamilton upgraded Science Applications International from a “hold” rating to a “buy” rating and set a $90.00 price target on the stock in a report on Friday, September 28th. Finally, Jefferies Financial Group upgraded Science Applications International from a “hold” rating to a “buy” rating and set a $97.00 price target on the stock in a report on Tuesday, September 25th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $86.86.
Science Applications International (NYSE:SAIC) last issued its earnings results on Thursday, December 6th. The information technology services provider reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.21. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.16 billion. Science Applications International had a return on equity of 57.27% and a net margin of 4.21%. The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.98 EPS. On average, equities research analysts expect that Science Applications International will post 4.51 earnings per share for the current year.
Large investors have recently made changes to their positions in the business. Itau Unibanco Holding S.A. grew its holdings in Science Applications International by 536.7% during the 2nd quarter. Itau Unibanco Holding S.A. now owns 2,031 shares of the information technology services provider’s stock valued at $164,000 after buying an additional 1,712 shares during the last quarter. Robeco Institutional Asset Management B.V. acquired a new stake in Science Applications International during the 2nd quarter valued at $201,000. Point72 Hong Kong Ltd grew its holdings in Science Applications International by 219.4% during the 2nd quarter. Point72 Hong Kong Ltd now owns 2,616 shares of the information technology services provider’s stock valued at $212,000 after buying an additional 1,797 shares during the last quarter. Martingale Asset Management L P acquired a new stake in Science Applications International during the 2nd quarter valued at $229,000. Finally, Paloma Partners Management Co acquired a new stake in Science Applications International during the 3rd quarter valued at $243,000. Hedge funds and other institutional investors own 67.30% of the company’s stock.
About Science Applications International
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. Its offerings include engineering; technology and equipment platform integration; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers' IT infrastructure.
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