StepStone Group (NASDAQ:STEP) Stock Bumped Up to Hold by Wall Street Zen

Key Points

• Wall Street Zen upgraded StepStone Group from “sell” to “hold.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $66.78.
• StepStone beat quarterly expectations, reporting EPS of $0.66 versus $0.55 forecast and revenue of $362.71 million versus $324.84 million expected.
• Shares opened at $47.45, while several analysts raised price targets, including UBS to $69 and Barclays to $65.

StepStone Group (NASDAQ:STEP - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other brokerages also recently commented on STEP. Wells Fargo & Company assumed coverage on shares of StepStone Group in a research note on Friday, October 2nd. They set an "overweight" rating and a $55.00 price objective for the company. UBS Group upped their price target on shares of StepStone Group from $63.00 to $69.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Barclays boosted their price target on StepStone Group from $62.00 to $65.00 and gave the company an "overweight" rating in a research report on Friday. Morgan Stanley set a $61.00 price objective on StepStone Group in a report on Friday, October 16th. Finally, BMO Capital Markets reduced their price target on StepStone Group from $58.00 to $48.00 and set an "outperform" rating for the company in a research report on Tuesday, October 27th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $66.78.

StepStone Group Stock Up 10.8%

Shares of STEP opened at $47.45 on Friday. The company has a 50-day moving average price of $45.63 and a two-hundred day moving average price of $48.90. The stock has a market cap of $5.66 billion, a price-to-earnings ratio of -12.07 and a beta of 1.28. The company has a quick ratio of 0.19, a current ratio of 0.19 and a debt-to-equity ratio of 1.22. StepStone Group has a 12 month low of $38.85 and a 12 month high of $77.79.

StepStone Group (NASDAQ:STEP - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.11. The company had revenue of $362.71 million during the quarter, compared to analysts' expectations of $324.84 million. StepStone Group had a negative net margin of 30.53% and a positive return on equity of 43.38%. Equities analysts predict that StepStone Group will post 2.51 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. William Blair Investment Management LLC raised its stake in StepStone Group by 17.9% during the 3rd quarter. William Blair Investment Management LLC now owns 2,276,447 shares of the company's stock valued at $98,798,000 after buying an additional 346,432 shares during the last quarter. Fifth Third Bancorp grew its holdings in StepStone Group by 6.1% during the third quarter. Fifth Third Bancorp now owns 17,573 shares of the company's stock valued at $763,000 after purchasing an additional 1,008 shares during the period. Maryland State Retirement & Pension System increased its position in StepStone Group by 70.0% in the third quarter. Maryland State Retirement & Pension System now owns 18,338 shares of the company's stock worth $796,000 after buying an additional 7,554 shares in the last quarter. Keybank National Association OH raised its stake in shares of StepStone Group by 14.2% in the third quarter. Keybank National Association OH now owns 6,028 shares of the company's stock worth $262,000 after buying an additional 748 shares during the period. Finally, Fulcrum Asset Management LLP bought a new position in shares of StepStone Group in the third quarter worth about $65,000. 55.54% of the stock is owned by institutional investors.

StepStone Group News Summary

Here are the key news stories impacting StepStone Group this week:

• Positive Sentiment: StepStone reported quarterly EPS of $0.66, above the $0.55 consensus estimate, and revenue of $362.71 million versus estimates of $324.84 million. EPS also increased from $0.54 a year earlier, supporting the view that results were stronger than expected. Quarterly earnings results
• Positive Sentiment: Royal Bank of Canada raised its price target to $68 from $65 and reiterated an “outperform” rating. Barclays lifted its target to $65 from $62 and kept an “overweight” rating. The target increases signal improved analyst expectations for the shares. Royal Bank of Canada rating Barclays rating
• Neutral Sentiment: The company declared a quarterly dividend of $0.33 per share, payable December 15 to shareholders of record November 30. The annualized payout is $1.32 per share, a 2.8% yield at the cited share price; the dividend may appeal to income-focused investors but is not as direct a growth catalyst as the earnings beat.

StepStone Group Company Profile

StepStone Group, Inc is a global investment firm focused on private markets. The company provides investment solutions and advisory services to institutional investors, family offices, and other clients seeking exposure to privately held and alternative assets.

Its activities include investments in private equity, venture capital, private debt, infrastructure, and real estate. StepStone builds customized portfolios through primary investments in funds, secondary-market transactions, and direct investments in companies and assets.

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