Form 4: SAIC Director Katharina G. McFarland Reports Stock Purchase and Short-Swing Profit Repayment

Director Katharina G. McFarland reports purchasing 230 shares of SAIC common stock at $109.86 and agreeing to repay $1,803.20 in short-swing profits from a previous transaction.

Summary

• Katharina G. McFarland, a director of Science Applications International Corp (SAIC), filed a Form 4 disclosing a transaction in SAIC common stock.
• On March 27, 2025, McFarland purchased 230 shares of SAIC common stock at a price of $109.86 per share.
• Following this transaction, McFarland beneficially owns 7,094 shares of SAIC common stock directly.
• The filing also indicates that McFarland's recent purchase was matchable under Section 16(b) of the Securities Exchange Act of 1934 with a sale of 230 shares on January 13, 2025, at $117.70 per share.
• McFarland has agreed to pay SAIC $1,803.20, representing the profit realized from this short-swing transaction.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the director having to repay short-swing profits, suggesting a compliance issue. However, the purchase of shares could be seen as a positive sign of confidence in the company.

Negatives

• The director had to repay short-swing profits, indicating a potential violation of Section 16(b) of the Securities Exchange Act of 1934.

Risks

• The repayment of short-swing profits could raise concerns about the director's compliance with securities regulations.

Industry Context

Form 4 filings are standard disclosures required by the SEC to provide transparency into the transactions of company insiders. The short-swing profit repayment highlights the importance of compliance with insider trading regulations.

Comparison to Industry Standards

• Compliance with Section 16(b) of the Securities Exchange Act is a standard expectation for corporate insiders at all publicly traded companies, including SAIC's competitors such as Booz Allen Hamilton and Leidos.
• Failure to comply, as evidenced by the short-swing profit repayment, can lead to reputational damage and regulatory scrutiny, similar to cases observed at other firms where insider trading violations have occurred.

Stakeholder Impact

• Shareholders may be concerned about the director's compliance with insider trading regulations.
• The repayment of short-swing profits could have a minor positive impact on SAIC's financials.

Key Dates

Keywords

SAIC, Director, Katharina G. McFarland, Form 4, Stock Purchase, Short-Swing Profit, Section 16(b)