Citigroup Lowers Parsons (NYSE:PSN) Price Target to $53.00

Key Points

• Citigroup lowered Parsons’ price target from $66 to $53 while maintaining a “buy” rating; the new target implies 23.4% upside from the previous close.
• Parsons reported a weak quarter, posting a $0.06-per-share loss versus analysts’ expected $0.76 profit and revenue of $1.59 billion below expectations. Management also reduced full-year revenue and adjusted EBITDA guidance.
• Despite the setbacks, analyst sentiment remains moderately bullish, with nine buy ratings and six holds and an average price target of $70.18. Insiders have purchased 32,500 shares over the past three months.

Parsons (NYSE:PSN - Get Free Report) had its price objective cut by equities researchers at Citigroup from $66.00 to $53.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's target price would indicate a potential upside of 23.40% from the company's previous close.

A number of other equities research analysts have also recently weighed in on PSN. Zacks Research raised Parsons from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Robert W. Baird reissued a "neutral" rating and set a $60.00 target price on shares of Parsons in a research note on Monday, April 13th. TD Cowen restated a "buy" rating on shares of Parsons in a report on Wednesday. Barclays dropped their target price on Parsons from $70.00 to $60.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Jefferies Financial Group reiterated a "hold" rating on shares of Parsons in a research note on Wednesday, July 8th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Parsons has an average rating of "Moderate Buy" and an average price target of $70.18.

Parsons Trading Up 6.5%

Shares of NYSE:PSN traded up $2.63 during mid-day trading on Thursday, reaching $42.95. 2,607,487 shares of the company were exchanged, compared to its average volume of 1,315,116. 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 firm has a market cap of $4.59 billion, a price-to-earnings ratio of 20.49, a P/E/G ratio of 1.96 and a beta of 0.66. The firm's 50-day simple moving average is $55.45 and its 200 day simple moving average is $58.38. Parsons has a 1 year low of $36.26 and a 1 year high of $89.50.

Parsons (NYSE:PSN - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.76 by ($0.82). Parsons had a net margin of 3.62% and a return on equity of 11.52%. The firm had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.61 billion. During the same period in the previous year, the firm earned $0.78 EPS. The firm's revenue for the quarter was down .5% compared to the same quarter last year. Equities research analysts forecast that Parsons will post 2.97 EPS for the current year.

Insider Activity

In related news, Director George L. Ball purchased 10,000 shares of the business's stock in a transaction on Wednesday, May 13th. The shares were bought at an average price of $50.00 per share, for a total transaction of $500,000.00. Following the acquisition, the director directly owned 150,383 shares in the company, valued at $7,519,150. This trade represents a 7.12% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Mark Keith Holdsworth acquired 10,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was bought at an average price of $51.27 per share, with a total value of $512,700.00. Following the purchase, the director directly owned 39,918 shares in the company, valued at approximately $2,046,595.86. This trade represents a 33.42% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 32,500 shares of company stock worth $1,637,325. Corporate insiders own 1.31% of the company's stock.

Institutional Trading of Parsons

Several hedge funds have recently added to or reduced their stakes in the company. Swedbank AB lifted its position in shares of Parsons by 654.7% during the 4th quarter. Swedbank AB now owns 1,052,541 shares of the company's stock worth $65,047,000 after purchasing an additional 913,079 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Parsons by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,892,400 shares of the company's stock valued at $102,494,000 after buying an additional 179,463 shares during the last quarter. Bastion Asset Management Inc. acquired a new stake in Parsons in the fourth quarter valued at $8,044,000. Hsbc Holdings PLC acquired a new stake in Parsons in the fourth quarter valued at $1,853,000. Finally, SG Americas Securities LLC lifted its holdings in Parsons by 771.0% during the 4th quarter. SG Americas Securities LLC now owns 31,033 shares of the company's stock worth $1,918,000 after buying an additional 27,470 shares during the last quarter. Institutional investors and hedge funds own 98.02% of the company's stock.

Key Stories Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Analysts remain constructive despite lowering their estimates. Stifel Nicolaus cut its price target to $66 from $79 while maintaining a “buy” rating; Truist reaffirmed “buy” with a $60 target, and Barclays maintained “overweight” with a $60 target. These targets imply substantial potential upside from recent levels. Analyst rating reports
• Positive Sentiment: Parsons reported a 1.2x second-quarter book-to-bill ratio, a 24% year-over-year increase in contract awards, and $9.3 billion of total backlog. Federal Solutions bookings increased 51%, while Critical Infrastructure revenue rose 5%. Recent insider purchases may also signal management confidence. Parsons Reports Second Quarter 2026 Results
• Neutral Sentiment: Parsons’ stock experienced a trading halt under a limit-up/limit-down pause and reached a new 52-week low during Wednesday’s volatile session, reflecting unusually heavy trading and uncertainty following the earnings release. Parsons Reaches New 12-Month Low
• Negative Sentiment: The key pressure is Parsons’ sharply reduced fiscal 2026 guidance. Revenue is now expected at $6.2 billion-$6.5 billion, down from $6.5 billion-$6.8 billion, while adjusted EBITDA guidance fell to $500 million-$560 million from $615 million-$675 million. Management cited a terminated fixed-price contract, project delays, portfolio-shaping actions, and charges tied to a joint-venture program.
• Negative Sentiment: Second-quarter results were weak: Parsons reported a $0.06 per-share loss versus consensus earnings of $0.76, revenue of approximately $1.6 billion below expectations, and a $15.2 million net loss compared with $55.2 million of profit a year earlier. A pending investor investigation related to the guidance reduction adds another potential overhang. Parsons Investigation Notice

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.

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