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George Ball Is The CFO & Executive VP of Parsons Corporation (NYSE:PSN) And They Just Spent US$882k On Shares

Simply Wall St

Those following along with Parsons Corporation (NYSE:PSN) will no doubt be intrigued by the recent purchase of shares by George Ball, CFO & Executive VP of the company, who spent a stonking US$882k on stock at an average price of US$29.40. Not only is that a big swing, but it increased their holding size by 34%, which is definitely great to see.

See our latest analysis for Parsons

Parsons Insider Transactions Over The Last Year

In fact, the recent purchase by George Ball was the biggest purchase of Parsons shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.33). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was George Ball.

George Ball purchased 55.00k shares over the year. The average price per share was US$29.40. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:PSN Recent Insider Trading, March 14th 2020
NYSE:PSN Recent Insider Trading, March 14th 2020

Parsons is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Parsons Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Parsons insiders own about US$6.3m worth of shares (which is 0.2% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Parsons Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Parsons insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Parsons you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.