Hi everyone, From time to time I like to do these posts that track significant insider buys using the Insider Trading Alerts algo (go sign up for nightly alerts, insidertradingalerts.ai) and significant insider sells. Buys are green, sells in red. I also think this is great free content.
SAIC just kept popping up on the email. Those of you subscribed will have seen this pattern already.
Take a look at this chart – what immediately jumps out is the recent cluster of insider buys right after the stock dropped from its high of around $150 down to the $110 range. And this isn’t just any insider buying – we’re seeing a concentrated burst of purchases from multiple high-level executives all buying at roughly the same price point.
The recent filings show:
- CFO bought 12,000 shares at $109.55 (~$1.3M purchase)
- EVP of Navy bought 360 shares at $109.61
- Multiple directors buying 100-500 share blocks
- VP of Air Force Commands bought 597 shares
- Corporate Secretary bought 100 shares
This is a classic “buying the dip” pattern, but what makes it special is the breadth of insiders participating. It’s not just one exec – it’s across the C-suite, board, and division leadership.
ALSO It is up 3.5% since their buys already, and since it started popping up on the screener!
Looking at SAIC’s stats:
- Market Cap: $5.37B (solid mid-cap)
- P/E: 15.69 (reasonable valuation)
- EPS: $7.17 (strong positive earnings)
- Beta: 0.65 (less volatile than the market)
- Forward dividend: 1.32% yield
- 52-week range: $94.68 – $156.34
- 1-year target: $127.10 (implies ~15% upside)
For those who don’t know, SAIC (Science Applications International Corp) is a major defense/government IT contractor. They do a ton of work with DoD, intelligence agencies, and other federal departments.
The historical pattern is also interesting – back in 2020 during market lows, we saw multiple insider buys in the $60-70 range. Those buys preceded a major multi-year uptrend to $150+.
Now it looks like insiders see similar value after this pullback to $110. Defense contractors typically have strong visibility into future revenues thanks to long-term government contracts, so when multiple insiders buy together like this, they may be seeing something positive on the horizon that Wall Street is missing.
Their next earnings are scheduled for early June, so worth keeping an eye on this one over the next couple months.
Anyone else looking at defense contractors right now? I find it interesting how many insiders are betting their own money here despite the recent pullback.
This is not financial advice, and insiders too can also make bad, risky investments. Do your own research before investing.