Garth Graham, a director at Science Applications International (SAIC), recently bought 215 shares. The buy increased his stake by 3%, and came to a total cost of $25,101.
The buy came a week after another company director bought 230 shares, increasing her position by 6%. And a company EVP also bought shares earlier this month. Going further back, both directors and executives were likely to be buyers of shares, with only one insider sale in early 2025.
Overall, Science Applications International insiders own 0.9% of shares.
The IT services provider is down 5% over the past year. The company’s shares have been declining since late last year, likely on concerns regarding the company’s government contracts. A push to streamline government makes it easy to eliminate contractor positions like those of SAIC first.
However, after bottoming in March, shares have been trending higher, suggesting further upside ahead. And SAIC currently trade at an attractive 16 times earnings.
Action to take: Outside of government cutbacks, SAIC continues to benefit from a strong private-sector labor market. Shares likely have some more upside in the months ahead, making for a speculative buy now.
At current prices, SAIC also pays a 1.3% dividend.
For traders, the May $125 calls, last trading for about $2.65, could see mid-to-high double-digit returns on a further trend higher in the weeks ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.