Bank of America Corp DE Boosts Stock Holdings in StepStone Group Inc. $STEP

Key Points

• Bank of America increased its StepStone Group stake by 53.6% in the first quarter, bringing its holdings to 414,722 shares worth approximately $19.8 million. Institutional investors collectively own 55.54% of STEP.
• StepStone reported quarterly EPS of $0.48, below the $0.50 consensus estimate, while revenue of $300.6 million also missed expectations. Shares opened at $48.48, well below their 12-month high of $77.79.
• The company raised its quarterly dividend to $0.33 per share, implying an annualized yield of about 2.7%. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $70.88.

Bank of America Corp DE increased its stake in StepStone Group Inc. (NASDAQ:STEP - Free Report) by 53.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 414,722 shares of the company's stock after acquiring an additional 144,752 shares during the period. Bank of America Corp DE owned approximately 0.35% of StepStone Group worth $19,791,000 at the end of the most recent reporting period.

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

StepStone Group Stock Performance

Shares of STEP opened at $48.48 on Wednesday. The company's 50 day simple moving average is $44.47 and its 200-day simple moving average is $48.96. The firm has a market cap of $5.79 billion, a PE ratio of -6.28 and a beta of 1.27. StepStone Group Inc. has a 12-month low of $38.85 and a 12-month high of $77.79. 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 results on Thursday, August 6th. The company reported $0.48 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.02). The business had revenue of $300.60 million during the quarter, compared to analysts' expectations 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, equities analysts predict that StepStone Group Inc. will post 2.53 EPS for the current year.

StepStone Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be issued a $0.33 dividend. The ex-dividend date of this dividend is Monday, August 31st. This is a positive change from StepStone Group's previous quarterly dividend of $0.28. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.7%. StepStone Group's dividend payout ratio is currently -14.51%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on STEP. UBS Group boosted their target price on StepStone Group from $63.00 to $69.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Barclays increased their price target on shares of StepStone Group from $60.00 to $62.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Oppenheimer cut their price objective on shares of StepStone Group from $90.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, May 21st. BMO Capital Markets restated an "outperform" rating and set a $58.00 price objective on shares of StepStone Group in a research report on Friday, August 7th. Finally, Morgan Stanley reduced their price objective on shares of StepStone Group from $72.00 to $63.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, StepStone Group presently has an average rating of "Moderate Buy" and a consensus target price of $70.88.

Insider Transactions at StepStone Group

In related news, COO Jose A. Fernandez sold 2,290 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.64, for a total value of $97,645.60. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael I. Mccabe purchased 120,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was bought at an average price of $41.85 per share, for a total transaction of $5,022,000.00. Following the transaction, the insider directly owned 433,178 shares in the company, valued at $18,128,499.30. This trade represents a 38.32% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 15.70% of the stock is currently owned by corporate insiders.

StepStone Group Company Profile

StepStone Group is a global private markets investment firm that provides specialized investment solutions across private equity, private credit and real assets. The firm offers customized portfolios, secondary interests, direct co-investments and tailored advisory services to institutional investors worldwide. StepStone's integrated research and data analytics platform supports its investment teams in sourcing opportunities and monitoring portfolio companies.

Founded in 2007 as an independent private markets specialist, the company has grown its presence through both organic expansion and strategic partnerships.

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