Truist Financial Reiterates "Buy" Rating for Parsons (NYSE:PSN)

Key Points

• Truist Financial reiterated its “Buy” rating on Parsons but cut its price target to $60 from $75, implying approximately 41.6% upside from the prior close. Analysts overall maintain a “Moderate Buy” consensus with a $73.55 target.
• Parsons reported a quarterly loss of $0.06 per share versus expectations of $0.76 in earnings, while revenue slightly missed estimates. Management also reduced fiscal 2026 revenue guidance to $6.2 billion-$6.5 billion, pressuring the stock to a new 52-week low.
• Despite the earnings setback, the company reported a 1.2x book-to-bill ratio, 24% year-over-year growth in contract awards and approximately $9.3 billion in backlog. Insiders also purchased 32,500 shares over the past 90 days.

Parsons (NYSE:PSN - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at Truist Financial in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $60.00 target price on the stock, down from their prior target price of $75.00. Truist Financial's target price points to a potential upside of 41.56% from the company's previous close.

Several other research firms have also weighed in on PSN. Jefferies Financial Group reissued a "hold" rating on shares of Parsons in a research note on Wednesday, July 8th. TD Cowen reiterated a "buy" rating on shares of Parsons in a research report on Wednesday. Zacks Research upgraded shares of Parsons from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Citigroup increased their target price on Parsons from $65.00 to $66.00 and gave the stock a "buy" rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings downgraded shares of Parsons from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, May 15th. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Parsons presently has a consensus rating of "Moderate Buy" and a consensus target price of $73.55.

Parsons Trading Up 5.1%

Shares of PSN stock traded up $2.06 on Thursday, reaching $42.38. 1,506,961 shares of the stock were exchanged, compared to its average volume of 1,306,896. 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 market cap of $4.53 billion, a PE ratio of 20.28, a P/E/G ratio of 1.96 and a beta of 0.66. The stock has a 50 day moving average price of $55.45 and a 200 day moving average price of $58.38. Parsons has a one year low of $36.26 and a one year high of $89.50.

Parsons (NYSE:PSN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported ($0.06) earnings per share 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 company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same period last year, the company earned $0.78 EPS. The business'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 fiscal year.

Insiders Place Their Bets

In other news, Director George L. Ball purchased 10,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average price of $50.00 per share, for a total transaction of $500,000.00. Following the completion of the acquisition, the director directly owned 150,383 shares in the company, valued at $7,519,150. This represents a 7.12% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Carey A. Smith purchased 12,500 shares of the stock in a transaction dated 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 completion of the acquisition, the chief executive officer owned 575,376 shares of the company's stock, valued at approximately $28,751,538.72. This represents a 2.22% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 32,500 shares of company stock valued at $1,637,325. Insiders own 1.31% of the company's stock.

Hedge Funds Weigh In On Parsons

A number of large investors have recently added to or reduced their stakes in PSN. Aster Capital Management DIFC Ltd bought a new position in shares of Parsons during the 4th quarter worth approximately $25,000. Danske Bank A S purchased a new stake in Parsons in the fourth quarter valued at about $31,000. Los Angeles Capital Management LLC purchased a new stake in shares of Parsons during the fourth quarter worth about $32,000. Versant Capital Management Inc raised its position in shares of Parsons by 183.6% in the 2nd quarter. Versant Capital Management Inc now owns 553 shares of the company's stock valued at $29,000 after purchasing an additional 358 shares during the last quarter. Finally, ST Germain D J Co. Inc. purchased a new stake in Parsons during the 4th quarter worth approximately $41,000. 98.02% of the stock is currently owned by institutional investors.

Key Headlines Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons reported a 1.2x quarterly book-to-bill ratio, with contract awards up 24% year over year. Federal Solutions bookings increased 51%, while total backlog reached approximately $9.3 billion, supporting future revenue visibility. Parsons Reports Second Quarter 2026 Results
• Positive Sentiment: Critical Infrastructure revenue rose 5% year over year, and Parsons cited continued demand, Middle East-related resilience and strategic contract wins as factors supporting its long-term growth outlook. Parsons Reports Second Quarter 2026 Results
• Neutral Sentiment: Barclays lowered its PSN price target from $70 to $60 but maintained an “overweight” rating. The revised target still implies substantial upside, although the reduction signals increased near-term caution following the results. Barclays Price Target Update
• Negative Sentiment: Parsons reported quarterly EPS of negative $0.06, versus the consensus estimate of $0.76 and $0.78 a year earlier. Revenue was approximately $1.59 billion, slightly below the $1.61 billion consensus and down about 1% year over year. Parsons Reports Q2 Loss
• Negative Sentiment: Management cut fiscal 2026 revenue guidance to $6.2 billion-$6.5 billion from expectations of roughly $6.7 billion. Portfolio-shaping actions and charges tied to a joint-venture program contributed to the quarterly loss, raising concerns about execution and earnings visibility. Parsons Slashes Full-Year Guidance
• Negative Sentiment: The earnings shock drove PSN to a new 52-week low, indicating that investors are prioritizing the near-term profit and guidance deterioration over the company’s healthy bookings and backlog. Parsons Reaches New 12-Month Low

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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