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

Key Points

• Parsons shares plunged to a new 52-week low after the company reported quarterly EPS of negative $0.06, missing the $0.76 consensus estimate by $0.82. Revenue was $1.59 billion, slightly below estimates and down 0.5% year over year.
• Analysts maintain a generally positive outlook, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $75.82, although Truist cut its target from $85 to $75.
• Company insiders bought 32,500 shares worth approximately $1.64 million over the past 90 days, including purchases by the CEO and a director, while institutional investors own 98.02% of the stock.

Parsons Corporation (NYSE:PSN - Get Free Report)'s share price reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. 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 analysts' consensus estimates of $0.76 by ($0.82). The company had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.61 billion. Parsons had a return on equity of 11.52% and a net margin of 3.62%.The firm's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.78 earnings per share.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PSN. Truist Financial dropped their price target on shares of Parsons from $85.00 to $75.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Weiss Ratings lowered shares of Parsons from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, May 15th. Robert W. Baird restated a "neutral" rating and set a $60.00 target price on shares of Parsons in a research report on Monday, April 13th. BNP Paribas Exane set a $65.00 target price on Parsons and gave the company an "outperform" rating in a research report on Wednesday, May 27th. Finally, Jefferies Financial Group reaffirmed 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, the stock has a consensus rating of "Moderate Buy" and an average target price of $75.82.

Insider Activity at Parsons

In related news, CEO Carey A. Smith bought 12,500 shares of the company's stock in a transaction on Friday, May 8th. The shares were acquired at an average cost of $49.97 per share, for a total transaction of $624,625.00. Following the purchase, the chief executive officer directly owned 575,376 shares of the company's stock, valued at approximately $28,751,538.72. The trade was a 2.22% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director George L. Ball bought 10,000 shares of Parsons stock in a transaction dated Wednesday, May 13th. The shares were bought at an average cost of $50.00 per share, for a total transaction of $500,000.00. Following the completion of the transaction, the director owned 150,383 shares of the company's stock, valued at approximately $7,519,150. This trade represents a 7.12% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 32,500 shares of company stock worth $1,637,325 in the last 90 days. 1.31% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Aster Capital Management DIFC Ltd purchased a new stake in shares of Parsons in the 4th quarter worth $25,000. Versant Capital Management Inc grew its position in shares of Parsons by 183.6% during the 2nd quarter. Versant Capital Management Inc now owns 553 shares of the company's stock worth $29,000 after buying an additional 358 shares in the last quarter. Danske Bank A S purchased a new position in shares of Parsons during the fourth quarter valued at $31,000. Los Angeles Capital Management LLC purchased a new position in shares of Parsons during the fourth quarter valued at $32,000. Finally, ST Germain D J Co. Inc. bought a new stake in shares of Parsons in the fourth quarter valued at about $41,000. 98.02% of the stock is currently owned by hedge funds and other institutional investors.

Parsons Price Performance

The firm has a fifty day moving average of $55.67 and a two-hundred day moving average of $58.58. The stock has a market capitalization of $4.00 billion, a P/E ratio of 17.89, a P/E/G 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.

About Parsons

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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