StepStone Group (NASDAQ:STEP) Rating Increased to Moderate Buy at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded StepStone Group to “moderate buy,” while analysts’ overall consensus remained “Moderate Buy,” with an average price target of $70.56.
• StepStone shares opened at $48.92, well below their 12-month high of $77.79. The company recently reported quarterly EPS of $0.48 and revenue of $300.6 million, both below analyst estimates.
• Institutional investors hold 55.54% of StepStone’s stock, with several hedge funds—including RBC and Goldman Sachs—recently increasing their positions.

StepStone Group (NASDAQ:STEP - Get Free Report) was upgraded by investment analysts at Royal Bank Of Canada to a "moderate buy" rating in a report released on Wednesday, Zacks reports.

A number of other equities analysts also recently commented on STEP. Wall Street Zen downgraded StepStone Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $58.00 target price on shares of StepStone Group in a research note on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of StepStone Group in a report on Monday, July 20th. Morgan Stanley lowered their price target on shares of StepStone Group from $72.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 21st. Finally, UBS Group upped their price objective on shares of StepStone Group from $63.00 to $69.00 and gave the company a "buy" rating in a report on Friday, August 7th. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $70.56.

StepStone Group Stock Performance

STEP opened at $48.92 on Wednesday. The firm has a market capitalization of $5.84 billion, a PE ratio of -6.34 and a beta of 1.29. StepStone Group has a twelve month low of $38.85 and a twelve month high of $77.79. The firm's 50-day moving average price is $47.00 and its 200 day moving average price is $47.72. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 1.22.

StepStone Group (NASDAQ:STEP - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.48 EPS for the quarter, missing analysts' consensus estimates of $0.50 by ($0.02). The business had revenue of $300.60 million during the quarter, compared to analyst estimates of $309.32 million. StepStone Group had a negative net margin of 30.53% and a positive return on equity of 43.38%. As a group, sell-side analysts expect that StepStone Group will post 2.5 EPS for the current fiscal year.

Hedge Funds Weigh In On StepStone Group

Hedge funds have recently modified their holdings of the business. Royal Bank of Canada lifted its position in StepStone Group by 72.6% in the first quarter. Royal Bank of Canada now owns 9,135 shares of the company's stock valued at $477,000 after buying an additional 3,843 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of StepStone Group by 6.5% during the 1st quarter. AQR Capital Management LLC now owns 14,904 shares of the company's stock worth $778,000 after purchasing an additional 908 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of StepStone Group by 6.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,602 shares of the company's stock worth $2,068,000 after purchasing an additional 2,238 shares during the period. Goldman Sachs Group Inc. increased its holdings in StepStone Group by 21.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 357,281 shares of the company's stock valued at $18,661,000 after purchasing an additional 63,519 shares during the last quarter. Finally, United Services Automobile Association acquired a new stake in StepStone Group in the 1st quarter valued at approximately $209,000. 55.54% of the stock is currently owned by hedge funds and other institutional investors.

StepStone Group Company Profile

StepStone Group, Inc is a global investment firm focused on the private markets. The company designs and manages investment programs for institutional investors, family offices, private wealth clients and other organizations seeking access to private-market opportunities.

Its activities include investing in and managing portfolios of private equity, venture capital, private debt, real estate and infrastructure investments. StepStone provides customized portfolios, primary fund investments, secondary-market transactions, co-investments and advisory services across these asset classes.

Founded in 2013, StepStone serves clients through a global network of offices and investment professionals.

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