Parsons (NYSE:PSN) Reaches New 1-Year Low After Earnings Miss

Shares of Parsons Corporation (NYSE:PSN) reached a new 52-week low on Wednesday following a weaker than expected earnings announcement. The company traded as low as $39.50 and last traded at $36.94, with a volume of 1046624 shares. The stock had previously closed at $62.03.

The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.76 by ($0.82). Parsons had a net margin of 3.62% and a return on equity of 11.52%. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same period last year, the business posted $0.78 EPS. The firm’s revenue was down .5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on PSN shares. Truist Financial cut their price objective on shares of Parsons from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Monday, April 20th. Zacks Research raised Parsons from a “strong sell” rating to a “hold” rating in a report on Monday, April 13th. Barclays lowered their price target on shares of Parsons from $78.00 to $70.00 and set an “overweight” rating on the stock in a report on Tuesday, March 31st. KeyCorp lowered shares of Parsons from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, April 14th. Finally, Citigroup lifted their price objective on shares of Parsons from $65.00 to $66.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Parsons presently has an average rating of “Moderate Buy” and an average target price of $75.82.

Insider Transactions at Parsons

In related news, Director George L. Ball purchased 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $50.00 per share, with a total value of $500,000.00. Following the purchase, the director owned 150,383 shares of the company’s stock, valued at $7,519,150. The trade was a 7.12% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Mark Keith Holdsworth purchased 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The stock was bought at an average cost of $51.27 per share, with a total value of $512,700.00. Following the acquisition, the director owned 39,918 shares in the company, valued at $2,046,595.86. This represents a 33.42% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 32,500 shares of company stock valued at $1,637,325 in the last three months. 1.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd purchased a new position in shares of Parsons in the fourth quarter worth about $25,000. Versant Capital Management Inc lifted its holdings in Parsons by 183.6% in the second quarter. Versant Capital Management Inc now owns 553 shares of the company’s stock valued at $29,000 after acquiring an additional 358 shares during the last quarter. Danske Bank A S purchased a new position in shares of Parsons during the 4th quarter worth $31,000. Los Angeles Capital Management LLC purchased a new position in Parsons during the fourth quarter worth about $32,000. Finally, ST Germain D J Co. Inc. purchased a new position in shares of Parsons during the 4th quarter worth approximately $41,000. Hedge funds and other institutional investors own 98.02% of the company’s stock.

Parsons Price Performance

The firm has a market capitalization of $4.00 billion, a price-to-earnings ratio of 17.89, a PEG ratio of 1.87 and a beta of 0.66. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.75 and a quick ratio of 1.75. The stock has a 50 day moving average price of $55.67 and a two-hundred day moving average price of $58.58.

Parsons Company Profile

Parsons Corporation (NYSE: PSN) is a technology-driven engineering, construction, technical and professional services firm. The company delivers end-to-end solutions that span feasibility studies, design and engineering, construction management, system integration and ongoing operations support. Parsons serves both government and commercial clients and focuses on critical infrastructure, defense, security, intelligence and environmental programs.

Core services include program and construction management for transportation systems, water and environmental infrastructure, cybersecurity and advanced systems integration.