Zacks Investment Research upgraded shares of Science Applications International (NYSE:SAIC) from a sell rating to a hold rating in a research 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.”

SAIC has been the subject of a number of other reports. Drexel Hamilton raised shares of Science Applications International from a hold rating to a buy rating and set a $90.00 target price for the company in a research note on Friday, September 28th. Cowen reissued a hold rating and set a $82.00 target price on shares of Science Applications International in a research note on Tuesday, September 11th. ValuEngine lowered shares of Science Applications International from a hold rating to a sell rating in a research note on Thursday, November 1st. Jefferies Financial Group raised shares of Science Applications International from a hold rating to a buy rating and set a $97.00 target price for the company in a research note on Tuesday, September 25th. Finally, Vertical Research lowered shares of Science Applications International from a buy rating to a hold rating and set a $80.00 target price for the company. in a research note on Tuesday, September 11th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. The company has an average rating of Hold and a consensus target price of $85.57.

Shares of SAIC opened at $69.40 on Wednesday. The firm has a market cap of $2.76 billion, a PE ratio of 13.61, a P/E/G ratio of 2.88 and a beta of 1.49. Science Applications International has a 12-month low of $63.15 and a 12-month high of $93.31. The company has a quick ratio of 1.24, a current ratio of 1.40 and a debt-to-equity ratio of 2.61.

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, beating the Zacks’ consensus estimate of $1.14 by $0.21. The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.16 billion. Science Applications International had a net margin of 4.29% and a return on equity of 61.00%. The business’s revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.98 earnings per share. Analysts predict that Science Applications International will post 4.51 EPS for the current year.

Several hedge funds have recently added to or reduced their stakes in SAIC. Vanguard Group Inc. raised its holdings in shares of Science Applications International by 7.0% in the third quarter. Vanguard Group Inc. now owns 5,404,860 shares of the information technology services provider’s stock valued at $435,631,000 after acquiring an additional 352,533 shares in the last quarter. Marshall Wace LLP bought a new stake in shares of Science Applications International in the third quarter valued at about $13,778,000. Matarin Capital Management LLC bought a new stake in shares of Science Applications International in the third quarter valued at about $12,584,000. BlackRock Inc. raised its holdings in shares of Science Applications International by 3.1% in the second quarter. BlackRock Inc. now owns 4,642,065 shares of the information technology services provider’s stock valued at $375,682,000 after acquiring an additional 137,944 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of Science Applications International by 14.9% in the third quarter. AQR Capital Management LLC now owns 807,873 shares of the information technology services provider’s stock valued at $65,115,000 after acquiring an additional 104,727 shares in the last quarter. 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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