Science Applications International Corporation is a technology company that provides services to the US Government’s Department of Defense. Specialising in technology integration, the group offers solutions relating to IT modernisation, cybersecurity, cloud computing, and data analytics. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $4.5 billion.
Science Applications International Corporation has issued a number of encouraging updates over the last few months. For example, in mid-June the company announced that it had won a $2.9 billion contract with the US Army for a broad array of software development and maintenance services. Then, in late June, the company announced that it had won a $630 million contract with the US Air Force to modernise critical infrastructure. Meanwhile, a number of brokers have lifted their price targets for the stock recently. In June, Jefferies raised its price target to $105 from $95 while Cowen and Company increased its price target to $100 from $95.
Source: 2iQ Research
What looks interesting here is that CFO Charles Mathis recently made his first open-market purchase of SAIC shares since he joined the company in November 2016. On 10 July, the insider purchased 1,450 shares at a price of $69.80 per share, spending a total of $101,210 on stock. This comes after CEO Nazzic Keene purchased $1 million worth of SAIC shares in April at around the same level. We see this pattern of insider buying as a bullish signal. It suggests that these insiders are confident about the future and see value in the stock near the $70 level.