Science Applications (NASDAQ:SAIC) International Corp (NYSE:SAIC) executive Attili Srinivas, holding the position of EVP, Civilian, has recently made a purchase of company stock, according to the latest SEC filings. On July 3, 2024, Srinivas acquired 100 shares of SAIC at a price of $116.997 per share, amounting to a total investment of $11,699.
This transaction has increased Srinivas's direct ownership in the company to 11,436 shares. The purchase demonstrates a positive gesture by the executive, reflecting a personal investment in the company's future. Science Applications International Corp, based in Reston, Virginia, operates in the computer integrated systems design industry and has been known by its former name, SAIC Gemini, Inc.
Investors often monitor insider transactions as they can provide insights into how the company's leadership views the stock's valuation and future prospects. While the motivations behind such transactions can vary, they are regularly followed for the signals they might convey about the company's health and the confidence insiders have in its strategy and management.
The purchase by EVP Srinivas is a straightforward equity transaction without any derivative involvement or complex financial instruments that could obscure the nature of the deal. As per the SEC filing, the transaction was signed off by Hilary L. Hageman, serving as Attorney-in-fact, on the same day as the purchase.
Science Applications International Corp and its executives are required to report any stock transactions in the company to the SEC, providing transparency and allowing the market to stay informed about significant insider trades. The latest transaction by Srinivas is now part of the public record for investors and market analysts to consider as they assess the company's stock performance and insider sentiment.
In other recent news, Science Applications International Corp. (SAIC) reported a steady financial performance in the first quarter of fiscal year 2025, with a revenue of $1.85 billion and an adjusted EBITDA of $166 million, reflecting a 9% margin. The firm also announced its multi-year strategy to boost pro-forma organic growth by 40 basis points and aims to achieve a bid volume target of $30 billion by fiscal year 2027. In line with this, SAIC committed to repurchasing $350 million to $400 million in shares this fiscal year, with $81 million already repurchased in Q1. Jefferies maintained a 'Hold' rating on SAIC stock, reflecting the firm's assessment of SAIC's current strategies and market performance.
On the global front, Canada is considering imposing import tariffs on Chinese-made electric vehicles (EVs), following concerns about China's aggressive production strategies affecting domestic and international EV manufacturers. The Canadian government has invited public feedback on this matter during a 30-day consultation period. This move aligns with recent international measures, including tariff hikes on Chinese imports by the U.S. and the European Commission's plans to levy additional duties on Chinese vehicle producers.
These are among the latest developments in the corporate landscape, providing insight into SAIC's performance and strategic direction, as well as international trade dynamics affecting the EV sector.
InvestingPro Insights
In light of recent insider stock purchases by executives at Science Applications International Corp (NYSE:SAIC), investors may find additional context from InvestingPro metrics and tips useful in evaluating the company's financial health and future prospects. The purchase by EVP Attili Srinivas aligns with an aggressive share buyback strategy, as noted in one of the InvestingPro Tips, which signals management's confidence in the company's valuation.
From a financial standpoint, SAIC's current market capitalization stands at $5.95 billion, with a P/E ratio of 13.41, indicating that the stock is trading at a lower multiple relative to near-term earnings growth. This is further supported by a PEG ratio of 0.28 over the last twelve months as of Q1 2023, suggesting that the stock may be undervalued when considering its earnings growth rate. Additionally, the company has maintained dividend payments for 12 consecutive years, providing a yield of 1.27% as of the last dividend ex-date on April 11, 2024.
However, not all indicators are positive. SAIC has seen revenue decline by 6.11% over the last twelve months as of Q1 2023, and gross profit margins remain weak at 11.7%. These figures are critical for investors to consider, especially when juxtaposed against the company's strategic financial maneuvers.
For those looking to delve deeper into SAIC's financials and strategic outlook, InvestingPro offers additional insights. There are six more InvestingPro Tips available, which could provide further clarity on the company's performance and market position. Interested readers can unlock these tips and benefit from the full range of financial analytics tools by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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