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Natarajan Prabu, the Executive Vice President and Chief Financial Officer of Science Applications (NASDAQ:SAIC) International Corp (NYSE:SAIC), a $5.3 billion technology integrator currently trading at $111.35, recently acquired 2,000 shares of the company’s common stock. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates. The shares were purchased at an average price of $109.5492 each, totaling approximately $219,098. This transaction increases Prabu’s total holdings to 57,018 shares. The acquisition was made indirectly by a trust. This insider purchase comes as five analysts have revised their earnings estimates upward for the upcoming period, and the company maintains a 13-year track record of consistent dividend payments, currently yielding 1.35%. For deeper insights into insider trading patterns and additional ProTips, visit InvestingPro.
In other recent news, Science Applications International Corp (SAIC) reported its fourth-quarter earnings for fiscal year 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.57, exceeding the projected $2.08, and reported revenue of $1.84 billion, which was higher than the anticipated $1.81 billion. This marks a 6% increase in revenue year-over-year, highlighting SAIC’s strong financial performance. Looking ahead, SAIC has provided revenue guidance for fiscal year 2026, estimating between $7.6 billion and $7.75 billion, with an expected EBITDA margin of 9.4% to 9.6%.
Additionally, UBS has raised its price target for SAIC to $126, up from $123, while maintaining a Neutral rating on the stock. Analyst Gavin Parsons (NYSE:PSN) from UBS noted that while there are risks in the Government IT sector, SAIC is showing signs of stabilization. SAIC has expressed a cautiously optimistic outlook, anticipating a 1.2X book-to-bill ratio in the first half of fiscal year 2026, which could support mid-single-digit organic growth in fiscal year 2027. Despite these positive indicators, UBS remains neutral due to uncertainties surrounding recompetes and the conversion of the company’s pipeline into growth.
SAIC’s forward-looking statements also reflect confidence in achieving its strategic goals, with a focus on innovation and technology integration. The company continues to emphasize its role in mission-critical IT and enterprise IT services, which have contributed to its consistent growth. These developments come amid a dynamic operating environment, with SAIC navigating uncertainties related to government efficiency initiatives and potential changes in contract types.
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