Exploring Science Applications International Corporation (SAIC) Investor Profile: Who’s Buying and Why?

You've seen the headlines: Science Applications International Corporation (SAIC) stock is trading near a 52-week low of $87.65 as of mid-November 2025, down over 26% in the last year, which defintely makes you wonder if the smart money is running for the exit. But here's the quick math: the company closed its fiscal year 2025 with solid fundamentals-generating $7.48 billion in revenue and delivering $362 million in net income, plus an adjusted diluted earnings per share (EPS) of $9.13. So, why the disconnect between the stock price and the financials? While institutional investors still own roughly 79.25% of the company, the profile is getting messy; we're seeing major churn, like Fmr Llc adding a substantial 786,037 shares in the third quarter of 2025, while BlackRock, Inc., a top holder, trimmed its position by 65,063 shares in the same period. The price is low, but the fundamentals look strong. Is this a classic value trap or a generational buying opportunity? That's the question we need to unpack.

Who Invests in Science Applications International Corporation (SAIC) and Why?

The investor base for Science Applications International Corporation (SAIC) is overwhelmingly institutional, reflecting its profile as a stable, mission-critical U.S. government technology integrator. Institutional investors hold a massive percentage of the stock, seeing it as a reliable play on defense spending and technology modernization.

As of November 2025, institutional ownership sits at a staggering 87.26%. This means the big money-pension funds, mutual funds, and large asset managers-is driving the stock's price and volatility, not the retail investor. You're essentially investing alongside some of the world's largest financial entities.

Key Investor Types: The Institutional Giants

The sheer size of the institutional stake tells you a lot about the company's perceived stability. These large buyers are not looking for a quick flip; they seek long-term, predictable returns. The primary investor types break down into a few key categories:

• Passive Index Funds: Firms like BlackRock, Inc. and Vanguard Group Inc. are among the largest holders, owning shares through massive index funds and ETFs. They hold SAIC because it's a component of major indices like the S&P Mid-Cap 400, making their position a function of market capitalization, not a specific trade.
• Active Mutual Funds: These funds, often managed by firms like Fmr Llc, conduct deeper analysis and make discretionary buys. They are attracted by the company's strong backlog and consistent cash flow.
• Hedge Funds and Investment Banks: This group is the most active, using SAIC for both long-term and short-term strategies. In Q3 2025, for example, FMR LLC added 786,037 shares, while BOSTON PARTNERS removed 870,195 shares, showing a high degree of rotation and conviction plays.
• Pension Funds and Insurance Companies: These investors prioritize capital preservation and stable income. SAIC's reliable dividend and government-backed revenue stream make it a perfect fit for their lower-risk mandates.

Here's the quick math: with nearly nine out of every ten shares held by institutions, their collective decisions are the market's pulse for SAIC.

Investment Motivations: Stability, Growth, and Cash

Investors are drawn to Science Applications International Corporation (SAIC) for a clear, three-part value proposition: a stable business model, consistent growth in a critical sector, and a disciplined capital return policy.

The company's primary customer is the U.S. government, which accounts for the lion's share of its approximately $7.5 billion in annual revenues. This creates a stable, recurring revenue base that is largely insulated from economic cycles, which is a huge draw for risk-averse institutional money.

Growth Prospects: The market sees SAIC as a growth play in technology modernization. The company is strategically aligned with high-priority areas like defense, space, and intelligence. For the current fiscal year, analysts forecast year-over-year earnings growth of 4.8%, with the Adjusted Diluted Earnings Per Share (EPS) guidance for FY2025 recently increased to between $8.10 and $8.30. This is a defintely strong signal of management confidence.

Dividends and Capital Return: SAIC is a reliable dividend payer. The annual dividend is $1.48 per share, paid quarterly at $0.37 per share, which gives a yield of about 1.72% as of November 2025. Crucially, the dividend payout ratio is very low, around 17.93%, meaning the payment is easily covered by earnings and is highly sustainable. This is key for income-focused investors.

For a deeper dive into the numbers behind this stability, you should check out Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors.

Investment Strategies: The Value-Growth Hybrid

The strategies used by SAIC investors often blend value and growth investing, a common approach for mature, yet expanding, defense contractors.

Value Investing: Many investors see a value opportunity. As of November 2025, the stock's Price-to-Earnings (P/E) ratio is around 10.55, which is near its 10-year low. The Price-to-Sales (P/S) ratio is also low at about 0.57. These metrics suggest the stock may be undervalued relative to its historical performance and its peers, attracting value funds like LSV Asset Management, which added 263,006 shares in Q3 2025.

Long-Term Holding: The company's robust backlog-estimated at approximately $22.9 billion as of Q2 FY2025-and its high cash flow generation make it a prime candidate for long-term holding. This strategy focuses on the company's ability to execute on its existing contracts and benefit from the steady, non-cyclical nature of government spending.

Short-Term/Event-Driven Trading: Hedge funds often engage in short-term trading based on contract announcements or earnings surprises. The trailing twelve months book-to-bill ratio (a measure of new contracts versus revenue) of 1.1 as of Q2 FY2025 is a positive indicator, but quarter-to-quarter fluctuations in bookings can trigger trading activity. We see this in the Q3 2025 activity where some funds were aggressively adding shares while others were exiting their positions entirely, like BALYASNY ASSET MANAGEMENT L.P. removing 277,691 shares.

Finance: Review the latest 13F filings for Q4 2025 to see if the institutional ownership percentage has shifted above 90%.

Institutional Ownership and Major Shareholders of Science Applications International Corporation (SAIC)

You need to know who truly holds the reins at Science Applications International Corporation (SAIC) because institutional money drives the stock price, and their collective actions often signal a company's near-term trajectory. The direct takeaway is that SAIC is overwhelmingly an institutionally-owned stock, with these large funds recently showing a mixed, but intensely focused, shift in their positions.

As of the most recent filings for the 2025 fiscal year, institutional investors own a commanding majority of the company. Specifically, institutional ownership stands at a significant 87.26% of Science Applications International Corporation's float. When nearly nine out of ten shares are held by professional money managers, their buying and selling dictates the stock's volatility and liquidity. That's a huge concentration of power.

Top Institutional Investors and Their Stakes

The top shareholders of Science Applications International Corporation are the usual suspects in the index fund and asset management world. These are the passive giants, plus a few active managers, who hold shares for long-term tracking or strategic value. Their sheer size means their portfolio adjustments, even small ones, move the market.

Here is a look at the largest institutional holders as of the end of the third quarter of 2025 (September 30, 2025):

Note that BlackRock, Inc. and Vanguard Group Inc. together hold over 9 million shares. These are largely passive holdings tied to index funds, meaning they buy and sell only to match the composition of indices like the S&P Mid-Cap 400, not based on a view of SAIC's specific fundamentals. That's why their changes are often small in percentage terms.

Recent Shifts: Who's Buying and Selling?

The third quarter of 2025 saw a fascinating divergence in investor sentiment. While the passive funds made minor adjustments, several active managers made big, decisive moves. We saw 187 institutional investors add to their positions, but a larger number, 254, decreased their stakes.

• Significant Accumulation: FMR LLC, a major active manager, was a huge buyer, adding 786,037 shares, a 35.5% increase to their portfolio. LSV Asset Management also showed conviction, adding 263,006 shares, a 20.2% jump.
• Major Reduction: On the sell side, BOSTON PARTNERS made the most dramatic cut, removing 870,195 shares, slashing their position by 56.3%. This kind of move signals a fundamental change in their investment thesis for the company. Other firms like BALYASNY ASSET MANAGEMENT L.P. and POLARIS CAPITAL MANAGEMENT, LLC completely exited their positions, removing over 277,000 shares and 237,000 shares, respectively.

This tells you that while the passive money is stable, the smart, active money is split. Some see a clear opportunity, while others are taking profits or rotating out. You defintely need to understand why the sellers are leaving.

The Impact of Institutional Pressure on Strategy

When institutions own this much of a company, they aren't just along for the ride; they are the co-pilots. Their influence is most visible in strategic decisions aimed at boosting shareholder value (the total return to shareholders, including dividends and stock appreciation). For a deeper dive into the company's background, you can check out Science Applications International Corporation (SAIC): History, Ownership, Mission, How It Works & Makes Money.

Here's the quick math on their power: with nearly 87.26% ownership, institutional investors can easily approve or reject major corporate actions. This pressure for performance is a key driver behind the company's recent strategic moves. For instance, in November 2025, Science Applications International Corporation announced a major organizational restructuring, consolidating five business groups into three (Army Navy, Air Force, Space and Intelligence, and Civilian). This move, effective January 31, 2026, is explicitly aimed at 'optimizing the company's operations and customer focus for growth and shareholder value creation'. That's the language of a management team responding directly to institutional demands for higher efficiency and better returns.

What this estimate hides is the difference between passive and active influence. The active funds that are buying, like FMR LLC, likely see this restructuring as a positive catalyst that will lead to higher earnings per share (EPS). The active funds selling, like BOSTON PARTNERS, might believe the restructuring isn't enough or that the company faces too many near-term risks in the defense and government services market.

Key Investors and Their Impact on Science Applications International Corporation (SAIC)

If you're looking at Science Applications International Corporation (SAIC), you need to look past the day-to-day stock price and focus on who actually owns the company. The investor profile for SAIC is dominated by large, passive institutional money, which means their influence is less about public yelling and more about quiet, long-term pressure on capital allocation and governance.

Institutional ownership of Science Applications International Corporation is massive, sitting at approximately 79.25% of the outstanding shares. This high concentration means the company's direction is heavily influenced by a handful of giants who are primarily interested in stability and returning capital to shareholders. The three largest holders-BlackRock, Inc., Vanguard Group Inc, and FMR LLC-are the defintely the ones to watch.

• BlackRock, Inc. holds the top spot with a 9.88% stake, valued at roughly $395.80 million.
• Vanguard Group Inc is a close second, holding 9.86% of the shares, valued at about $395.36 million.
• FMR LLC (Fidelity) rounds out the top three, owning 6.52%, a position valued near $261.14 million.

Passive Giants and Shareholder Value Creation

These large, passive investors-often called the Big Three-rarely engage in traditional activist campaigns, but their sheer size gives them dispositive (decisive) voting power on things like board elections and executive compensation. When Science Applications International Corporation announced a strategic organizational restructuring in November 2025, the stated goal was to simplify the structure and deliver sustainable long-term growth and shareholder value creation.

This is the language of institutional influence. It shows the management team is acutely aware of the need to satisfy their largest shareholders. A concrete example of this influence is the company's capital allocation strategy, which includes returning capital to shareholders. In late 2024, the Board authorized the repurchase of up to $1.2 billion of common stock, a move that directly boosts earnings per share and signals a commitment to shareholder returns.

The passive investors want a steady hand and predictable cash flow. They don't want drama. You can read more about how this focus impacts the bottom line in Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors.

Recent Investor Activity: Q3 2025 Trading Signals

Recent trading activity from the third quarter of fiscal year 2026 (Q3 2025) shows a dynamic shift among hedge funds and asset managers, which gives us a clearer picture of near-term sentiment. While the Big Three mostly hold steady, these active funds are quicker to react to market conditions and company announcements like the recent CEO transition and organizational changes.

Here's the quick math on the most notable Q3 2025 moves:

The fact that FMR LLC, already a top-three holder, significantly increased its position by 35.5% is a strong vote of confidence in the company's long-term strategy, despite the recent stock price decline. Conversely, the complete exit by BALYASNY ASSET MANAGEMENT L.P. and the major reduction by BOSTON PARTNERS suggest some active managers are taking profits or rotating out due to perceived risks, perhaps related to the leadership changes or the challenging market conditions that saw the stock hit a 52-week low.

The key takeaway is that the big money is still committed, but the active crowd is split. Your action here is to watch for the Q3 FY2026 earnings release on December 4, 2025, as that data will either validate FMR's buying conviction or justify the hedge funds' selling.

Market Impact and Investor Sentiment

You're looking at Science Applications International Corporation (SAIC), a major US government technology integrator, and the investor picture is, honestly, a mixed bag right now. The sentiment of major shareholders is best described as cautiously neutral, a 'Hold' consensus from analysts, but with a significant institutional commitment that suggests long-term belief. The firm's high institutional ownership-around 87.26% of shares-is a clear vote of confidence in its core defense and intelligence business, but the recent trading flow shows a near-term tug-of-war.

In the most recent quarter (Q3 2025), we saw a higher number of institutional investors reducing their positions than increasing them: about 256 firms decreased their holdings, while only 186 added shares. This suggests a cautious approach to near-term growth, even as the overall institutional presence remains dominant. One clean one-liner: Institutional money is sticky, but it's defintely not all buying right now.

Recent Market Reactions to Ownership Shifts

The stock market has reacted sharply to both company-specific news and the resulting investor moves. The most significant recent downturn came after the Q1 2025 earnings report, where Science Applications International Corporation missed its earnings per share (EPS) forecast. The reported EPS of $1.92 fell short of the expected $2.16, which immediately sent the stock tumbling by 13% in pre-market trading.

This negative reaction was compounded by a broader market decline, pushing the stock to a 52-week low of $90.11 in November 2025, representing a steep 40.58% decline over the preceding year. This price action clearly reflects investor anxiety over profitability and market pressures, despite the company securing a massive $1.4 billion COBRA task order in late 2025.

Here's the quick math on key institutional activity from Q3 2025, showing the divergence in conviction:

• FMR LLC: Added 786,037 shares (+35.5%), an estimated value of $78.1 million.
• BOSTON PARTNERS: Removed 870,195 shares (-56.3%), an estimated value of $86.5 million.
• AQR CAPITAL MANAGEMENT LLC: Removed 330,803 shares (-25.4%), an estimated value of $32.9 million.

This kind of large-scale selling by a few major funds, like BOSTON PARTNERS, can create a significant drag on the stock price, regardless of the strong fundamentals you can read about in Science Applications International Corporation (SAIC): History, Ownership, Mission, How It Works & Makes Money.

Analyst Perspectives on Key Investors and Future Outlook

The analyst community is trying to map the impact of this mixed institutional flow against Science Applications International Corporation's solid, government-backed revenue base. For the full fiscal year 2025, the company reported revenues of $7.479 billion and a massive backlog of $21.857 billion, which provides incredible revenue visibility (the certainty of future revenue).

The consensus rating from nine analysts as of November 2025 is 'Hold,' but the range of price targets is wide, indicating disagreement on the company's valuation trajectory. The median price target sits at $114.56.

What this estimate hides is the split in opinion. Stifel, for instance, has a 'Buy' rating with a target of $128.00, while Goldman Sachs issued a 'Sell' rating with a target of $91.00. This disparity is often a sign that the market is struggling to price in a major transition-in this case, balancing the low-volatility, high-backlog defense business against the need for higher growth and margin expansion.

The low valuation metrics are a key point for those buying: the stock's P/E (Price-to-Earnings) ratio of 10.55 is near its 10-year low, suggesting that, for value investors, the stock is potentially undervalued at current levels. Insider buying activity, though minor, also signals confidence from those closest to the company's operations.

The table below summarizes the analyst price targets as of late 2025:

Finance: Monitor institutional 13F filings for Q4 2025 to see if the net selling trend accelerates or reverses.