Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
On May 8, 2019, the Company consummated its initial public offering (“IPO”) whereby the Company sold 18,518,500 shares of common stock for $27.00 per share. The underwriters exercised their share option on May 14, 2019 to purchase an additional 2,777,775 shares at the share price of $25.515 which was the IPO share price of $27.00 less the underwriting discount of $1.485 per share.
Our common stock is listed on the NYSE under the ticker symbol “PSN”. The following table presents the ranges of high and low sales prices of our common stock quoted on the NYSE for each quarter since the IPO on May 8, 2019.
Low Sale Price
High Sale Price
Fiscal 2019:
Second Quarter
$
29.03
$
38.33
Third Quarter
$
32.37
$
38.82
Fourth Quarter
$
31.69
$
42.65
Fiscal 2020:
First Quarter
$
24.67
$
45.40
Second Quarter
$
29.16
$
43.37
Third Quarter
$
31.69
$
37.17
Fourth Quarter
$
30.08
$
37.14
Fiscal 2021:
First Quarter
$
34.44
$
41.00
Second Quarter
$
38.43
$
45.01
Third Quarter
$
30.86
$
40.74
Fourth Quarter
$
30.55
$
37.38
During the years ended December 31, 2021 and 2020, the Company did not declare any dividends. On April 3, 2019, the board of directors of the Company declared a cash dividend to the Company’s sole existing shareholder at that time, the ESOP, in the amount of $2.00 per share, or $52.1 million in the aggregate (the “IPO Dividend”). The IPO Dividend was paid on May 10, 2019. On April 15, 2019, the board of directors of the Company declared a common stock dividend in a ratio of two shares of common stock for every one share of common stock then held by the Company’s shareholder (the “Stock Dividend”). The record date of the Stock Dividend was May 7, 2019, the day immediately prior to the consummation of the Company’s IPO on May 8, 2019, and the payment date of the Stock Dividend was May 8, 2019. Purchasers of the Company’s common stock in the Company’s public offering were not entitled to receive any portion of the Stock Dividend.
Other than the IPO Dividend and the Stock Dividend discussed above, we currently do not intend to declare or pay any cash dividends in the foreseeable future. Any further determination to pay dividends on our capital stock will be at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, restrictions under our Senior Notes issued in a private placement in 2014, or the Convertible Senior Notes, and Credit Agreement, and other factors that our board of directors considers relevant.
According to the records of our transfer agent, there were four shareholders of record as of February 12, 2022.
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Performance Graph
The following graph compares the cumulative total return, from the IPO date through December 31, 2021, to shareholders of Parsons Corporation common stock relative to the cumulative total returns of the Russell 2000 Index and the Standard and Poor’s IT Consulting & Other Services Index. The graph assumes that the value of the initial investment in our common stock and each of the two indexes was $100 on May 8, 2019, and tracks it through December 31, 2021 (including reinvestment of dividends). The stock performance included in this graph is not necessarily indicative of future stock price performance.
5/8/19
12/19
12/20
12/21
Parsons Corp.
100.00
137.28
121.08
111.91
Russell 2000
100.00
105.95
127.10
145.93
S&P 1500 IT Consulting & Other Services Index
100.00
100.60
115.58
164.20
Securities Authorized for Issuance Under Equity Compensation Plans
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The information required by this item with respect to our equity compensation plans is incorporated by reference to our 2021 Proxy Statement.
Recent Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
On August 9, 2021, the Company’s Board of Directors authorized the Company to acquire a number of shares of Common Stock having an aggregate market value of not greater than $100,000,000 from time to time, commencing on August 12, 2021. Repurchased shares of common stock are retired and included in “Repurchases of common stock” in cash flows from financing activities in the Consolidated Statements of Cash Flows. The Company repurchased 245,000 shares at an average price of $35.51 during the quarter ended September 30, 2021. The Company repurchased 373,533 shares at an average price of $34.81 during the quarter ended December 31, 2021. As of December 31, 2021, the Company has $78.3 million remaining under the stock repurchase program.
Item 6. [Reserved]
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