UBS Group Issues Pessimistic Forecast for Parsons (NYSE:PSN) Stock Price

Key Points

• UBS Group lowered Parsons’ price target from $67 to $58 while maintaining a “buy” rating, implying 34.21% upside from the prior close. The broader analyst consensus remains “Moderate Buy,” with a $66.82 average target.
• Parsons shares traded at $43.22 amid significant volatility, well below their 52-week high of $89.50. The stock has also reached a new 52-week low following disappointing earnings and reduced fiscal 2026 guidance.
• The company reported a quarterly loss of $0.06 per share versus expectations for $0.76 in earnings, while revenue slightly missed estimates and declined year over year. Management cited contract termination, project delays and other charges, although insiders purchased shares during the quarter.

Parsons (NYSE:PSN - Get Free Report) had its price target reduced by equities researchers at UBS Group from $67.00 to $58.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's price target would suggest a potential upside of 34.21% from the stock's previous close.

PSN has been the subject of a number of other reports. Jefferies Financial Group reiterated a "hold" rating on shares of Parsons in a research report on Wednesday, July 8th. Barclays dropped their price objective on shares of Parsons from $70.00 to $60.00 and set an "overweight" rating for the company in a research note on Thursday. Citigroup decreased their target price on shares of Parsons from $66.00 to $53.00 and set a "buy" rating on the stock in a research note on Thursday. KeyCorp cut Parsons from an "overweight" rating to a "sector weight" rating in a report on Tuesday, April 14th. Finally, TD Cowen restated a "buy" rating on shares of Parsons in a research report on Wednesday. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $66.82.

Parsons Price Performance

Shares of Parsons stock traded up $2.90 during mid-day trading on Thursday, reaching $43.22. 3,278,464 shares of the stock traded hands, compared to its average volume of 1,318,543. The business has a 50-day moving average of $55.45 and a 200 day moving average of $58.38. Parsons has a fifty-two week low of $36.26 and a fifty-two week high of $89.50. The stock has a market capitalization of $4.62 billion, a PE ratio of 20.66, a PEG ratio of 1.96 and a beta of 0.66. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.55.

Parsons (NYSE:PSN - Get Free Report) last issued its quarterly 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 return on equity of 11.52% and a net margin of 3.62%.The firm had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same period in the prior year, the firm earned $0.78 earnings per share. The business's revenue was down .5% on a year-over-year basis. On average, analysts predict that Parsons will post 2.97 EPS for the current year.

Insider Activity

In related news, Director Mark Keith Holdsworth acquired 10,000 shares of Parsons stock in a transaction that occurred on Tuesday, May 12th. The shares were purchased at an average cost of $51.27 per share, for a total transaction of $512,700.00. Following the acquisition, the director owned 39,918 shares in the company, valued at approximately $2,046,595.86. This represents a 33.42% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Carey A. Smith purchased 12,500 shares of the company's stock in a transaction on Friday, May 8th. The shares were bought at an average price of $49.97 per share, with a total value of $624,625.00. Following the completion of the transaction, the chief executive officer 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 disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 32,500 shares of company stock valued at $1,637,325 in the last quarter. Insiders own 1.31% of the company's stock.

Hedge Funds Weigh In On Parsons

Hedge funds have recently made changes to their positions in the stock. Aster Capital Management DIFC Ltd purchased a new stake in Parsons in the fourth quarter valued at approximately $25,000. Versant Capital Management Inc boosted its position in shares of Parsons by 183.6% during the second quarter. Versant Capital Management Inc now owns 553 shares of the company's stock worth $29,000 after buying an additional 358 shares during the period. Danske Bank A S acquired a new stake in shares of Parsons in the fourth quarter valued at $31,000. Los Angeles Capital Management LLC acquired a new stake in shares of Parsons in the fourth quarter valued at $32,000. Finally, ST Germain D J Co. Inc. purchased a new stake in shares of Parsons in the 4th quarter valued at $41,000. Hedge funds and other institutional investors own 98.02% of the company's stock.

Trending Headlines about 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

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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