Science Applications (NASDAQ:SAIC) International Corporation (NASDAQ:SAIC), a leader in computer integrated systems design, announced today the appointment of John K. Tien, Jr. to its Board of Directors. Tien's term will commence on December 2, 2024, and continue until the company's 2025 annual meeting of stockholders.
Tien brings a wealth of leadership experience from various sectors, including his recent role as the Deputy Secretary of the U.S. Department of Homeland Security under the Biden Administration. His tenure in this position lasted from June 2021 to July 2023.
Prior to his government service, Tien spent a decade in senior roles at Citigroup (NYSE:C) and has a distinguished military background as an active-duty U.S. Army officer under three presidential administrations.
His academic credentials include a Bachelor of Science in Civil Engineering from the United States Military Academy at West Point, a Master of Arts from Oxford University as a Rhodes Scholar, and a stint as a National Security Fellow at the Harvard Kennedy School.
With Tien's appointment, SAIC's Board expands from eleven to twelve members. He will also join the Nominating and Corporate Governance Committee upon the effective date of his board membership.
As a non-employee director, Tien is eligible for the standard annual cash and equity compensation provided to all non-employee directors of SAIC, which will be prorated until the 2025 Annual Meeting. Additionally, he will participate in the Company’s Deferred Compensation Plan, allowing for a deferral of 100% of the cash retainer and meeting fees associated with board service.
The company has clarified that there are no existing arrangements or understandings between Tien and any other individuals regarding his selection as a director. Furthermore, there are no familial relationships or relevant transactions between Tien and the company that would necessitate disclosure under SEC regulations.
This announcement is based on a press release statement from Science Applications International Corporation.
In other recent news, the European Union has imposed tariffs on Chinese-made electric vehicles, including a 7.8% tariff on Tesla (NASDAQ:TSLA) and up to 35.3% on SAIC and other manufacturers. This decision follows an investigation by the EU and has led to retaliatory measures from China.
Science Applications International Corp (SAIC) has amended its existing credit agreement, effectively lowering the interest rates for certain loans. This strategic financial move could potentially lower borrowing costs for the company.
Analysts from Wells Fargo (NYSE:WFC), JPMorgan, and Jefferies have made adjustments to their outlook on SAIC. Wells Fargo increased the company's stock price target to $157, citing the company's strong second quarter performance.
JPMorgan upgraded SAIC's stock from Neutral to Overweight and raised its price target to $170. Meanwhile, Jefferies increased SAIC's stock target from $140 to $148, maintaining a hold rating.
SAIC'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.
Finally, SAIC secured a significant $229 million contract from the U.S. Department of Defense to enhance the IT capabilities of NORAD and USNORTHCOM. These recent developments demonstrate SAIC's strategic transition towards targeted growth areas and improved bidding processes.
InvestingPro Insights
As SAIC welcomes John K. Tien, Jr. to its Board of Directors, investors might be interested in some key financial insights. According to InvestingPro data, SAIC's market capitalization stands at $5.94 billion, with a P/E ratio of 21.39. The company has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns.
Two relevant InvestingPro Tips highlight that management has been aggressively buying back shares, and the stock is currently trading near its 52-week low. These factors could be of interest to value-oriented investors considering the recent board appointment and the company's strategic direction.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on SAIC, providing a deeper understanding of the company's financial health and market position.
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