Science Applications (NASDAQ:SAIC) International Corp (NYSE:SAIC) executive vice president Barbara Supplee acquired shares of the company's stock on September 27, according to a recent SEC filing. The EVP, who oversees the Navy portfolio, purchased 150 shares at a price of $137.38 per share, totaling over $20,000.
This transaction reflects a vote of confidence by the executive in the company's future prospects. Investors often monitor insider buying as it can indicate executives' belief in the company's performance and outlook.
Science Applications International Corp, a leader in computer integrated systems design, has seen its shares fluctuate in recent months, making the timing of Supplee's purchase noteworthy for market observers.
Following the acquisition, Supplee's total direct ownership in SAIC has increased to 3,154 shares. The transaction was signed off by attorney-in-fact Hilary L. Hageman on September 30, as documented in the SEC filing.
Shareholders and potential investors in Science Applications International Corp will likely keep an eye on insider transactions like these for insights into how the company's top executives view the stock's value and potential.
In other recent news, Science Applications International Corp. (SAIC) has been making notable strides in its financial and operational performance. The company has seen a positive progression in bids throughout the year, amounting to around $14.5 billion. This has been supported by the potential acceleration of targets and win rates surpassing expectations. SAIC anticipates organic growth of 2-3% in the latter half of the year, bolstered by operations and maintenance expenditure catch-up, the ramp-up of the DTAMM project, and a $200 million extension for the USAF CBC2.
Additionally, SAIC is expecting margin expansion, driven by accretive civilian projects and a robust bid pipeline. This is projected to contribute an additional $0.12 to the base fiscal year 2025 estimated earnings per share of $8.10. The company is also focusing on growing its free cash flow per share at an approximate rate of 10% per year, aiming to increase it from $9 to $12.
In terms of recent developments, SAIC secured a significant $229 million contract from the U.S. Department of Defense. This contract aims to enhance the IT capabilities of NORAD and USNORTHCOM. The company's second fiscal quarter results indicated a 2% increase in revenue and a slight 2% decrease in EBITDA, surpassing expectations. This led to a revised fiscal year 2025 forecast predicting 3% revenue growth and 4% EBITDA growth.
Lastly, analyst firm Jefferies has revised their price target for SAIC from $135.00 to $140.00, reflecting these developments. Despite acknowledging risks related to contract protests and the impact of elections on their book-to-bill targets, SAIC's executives expressed confidence in their strategy to drive sustainable growth.
InvestingPro Insights
Barbara Supplee's recent purchase of SAIC shares aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro Tips, management has been aggressively buying back shares, which, coupled with Supplee's insider purchase, suggests strong confidence in the company's future. This is further supported by SAIC's high shareholder yield and its consistent dividend payments for 12 consecutive years.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $6.89 billion and a revenue of $7.297 billion in the last twelve months. SAIC's profitability is evident, with an adjusted operating income of $509 million and an operating income margin of 6.98% over the same period.
Investors may find SAIC's recent performance particularly appealing. The stock has shown a strong return over the last three months, with InvestingPro Data reporting a 17.56% price total return. This short-term strength is complemented by a solid 32.13% one-year price total return, indicating sustained investor confidence.
While these metrics paint a positive picture, it's worth noting that SAIC is trading at a high Price / Book multiple of 4.24, which may be a consideration for value-oriented investors. Additionally, the company faces some challenges, as InvestingPro Tips point out weak gross profit margins and short-term obligations exceeding liquid assets.
For a more comprehensive analysis, InvestingPro offers 11 additional tips on SAIC, providing deeper insights into the company's financial health and market position.
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