Kettle Hill Doubles Down on Parsons Stock, Buys $24 Million Worth in Recent Quarter

Kettle Hill Capital Management disclosed a significant purchase of Parsons Corporation (NYSE:PSN) shares, adding 278,919 shares and increasing its position value by approximately $24.18 million, according to a November 13, 2025, SEC filing.

What Happened

Kettle Hill Capital Management reported a substantial increase in its holding of Parsons Corporation, according to a November 13, 2025, filing with the Securities and Exchange Commission (SEC). The firm added 278,919 shares during the third quarter, bringing its total to 373,180 shares worth $30.94 million as of September 30, 2025. The position now represents 6.96% of the firm’s $444.47 million in reportable U.S. equity holdings.

What Else to Know

Kettle Hill increased its stake in Parsons, which now constitutes 6.96% of the fund’s reportable equity AUM.

Top holdings after the filing:

• NASDAQ: LKQ: $35.53 million (7.99% of AUM)
• NYSE: PSN: $30.94 million (6.96% of AUM)
• NASDAQ: WYNN: $26.98 million (6.07% of AUM)
• NYSE: IFF: $26.14 million (5.88% of AUM)
• NYSE: RKT: $24.68 million (5.55% of AUM)

As of December 05, 2025, shares of Parsons were priced at $67.22, down 30.8% over the past year, underperforming the S&P 500 by 45.67 percentage points.

Company Overview

Company Snapshot

• Delivers integrated solutions in defense, intelligence, cybersecurity, space, geospatial, missile defense, and critical infrastructure, with offerings spanning cyber platforms, geospatial intelligence, missile defense systems, environmental analytics, and intelligent transportation management.
• Operates a project- and contract-based business model, generating revenue primarily through long-term government contracts and specialized services for public and private sector clients in high-security and infrastructure domains.
• Serves U.S. Department of Defense, intelligence agencies, national security organizations, transportation authorities, public utilities, and private-sector industrial clients across North America, the Middle East, and internationally.

Parsons Corporation is a leading provider of advanced solutions for defense, intelligence, and critical infrastructure, leveraging deep expertise in cybersecurity, geospatial analytics, and complex systems integration. With a workforce of 20,000 and a global presence, the company is positioned to address mission-critical challenges for government and commercial clients. Its diversified portfolio and focus on high-value, technology-driven contracts underpin its competitive edge in the industrial and government services sectors.

Foolish Take

Kettle Hill Capital Management, a New York-based investment firm, recently acquired nearly 280,000 shares of Parsons Corporation stock, bringing its total holdings in the company to more than 373,000 shares valued at almost $31 million as of September 30, 2025. Parsons is now the firm's second-largest position overall, representing 6.96% of total AUM. Here's what investors need to know about this transaction.

First off, Parsons' stock took a hit recently when FAA announced it had selected Peraton -- a rival of Parsons -- for a multi-billion contract to upgrade U.S. air traffic control systems. Following the announcement, several sell-side analysts downgraded Parsons due to reduced revenue growth forecasts. All told, Parsons stock has declined approximately 24% in the last month alone.

Yet, this pullback could spell opportunity. Shares of Parsons now trade at a price-to-earnings (P/E) multiple of 19x. That's well below the company's three-year average of 41x.

To sum up, Parsons stock has hit a major bump in the road. The loss of a major government contract and subsequent analyst downgrades has driven the company's stock to a multi-year low valuation. Opportunistic investors may want to give the stock a closer look.

Glossary

13F reportable assets under management (AUM): The total value of U.S. equity securities a fund must disclose in quarterly SEC Form 13F filings.
Assets Under Management (AUM): The total market value of investments that a fund or firm manages on behalf of clients.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The proportion or amount of ownership a fund or investor holds in a company.
Holding: A security or asset currently owned by an investor or fund.
TTM: The 12-month period ending with the most recent quarterly report.
Project- and contract-based business model: A company structure where revenue is primarily earned through specific projects or contracts, often with set terms.
Government contracts: Agreements between a company and government agencies to provide goods or services, often for multiple years.
Geospatial intelligence: Information derived from analyzing imagery and geographic data to understand physical features and activities on Earth.
Missile defense systems: Technologies and platforms designed to detect, track, and intercept incoming missiles.
Critical infrastructure: Essential systems and assets, like transportation or utilities, vital to a country's security and economy.
Equity holdings: Investments in company shares, representing ownership interests in those businesses.

Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Companies. The Motley Fool recommends LKQ and recommends the following options: short February 2026 $75 calls on International Flavors & Fragrances. The Motley Fool has a disclosure policy.