Capital World Investors Grows Position in StepStone Group Inc. $STEP

Key Points

• Capital World Investors boosted its stake in StepStone by 3.6% to 2,961,976 shares (2.54% of the company, about $193.4M), and other institutions including Vanguard also increased holdings, leaving institutional ownership at 55.54%.
• StepStone's board authorized a $100 million share buyback (up to ~1.8% of shares) and declared a quarterly dividend of $0.28 per share (annualized $1.12, ~2.5% yield).
• In the latest quarter StepStone beat EPS estimates ($0.65 vs. $0.60) but missed revenue expectations ($241.1M vs. $363.9M) and reported a negative net margin, while the stock trades below its 50- and 200-day averages and carries a consensus Moderate Buy analyst rating with an average target of $78.86.

Capital World Investors boosted its position in shares of StepStone Group Inc. (NASDAQ:STEP - Free Report) by 3.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,961,976 shares of the company's stock after buying an additional 102,585 shares during the period. Capital World Investors owned 2.54% of StepStone Group worth $193,447,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. Westfield Capital Management Co. LP acquired a new position in shares of StepStone Group in the 3rd quarter valued at $50,859,000. Vanguard Group Inc. boosted its stake in StepStone Group by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 7,721,468 shares of the company's stock worth $504,289,000 after purchasing an additional 296,378 shares during the period. Balyasny Asset Management L.P. boosted its stake in StepStone Group by 125.7% during the 2nd quarter. Balyasny Asset Management L.P. now owns 472,270 shares of the company's stock worth $26,211,000 after purchasing an additional 263,015 shares during the period. Franklin Resources Inc. grew its position in StepStone Group by 28.0% during the 2nd quarter. Franklin Resources Inc. now owns 1,122,986 shares of the company's stock worth $62,326,000 after purchasing an additional 245,546 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its stake in shares of StepStone Group by 1,598.9% during the third quarter. Victory Capital Management Inc. now owns 203,873 shares of the company's stock worth $13,315,000 after buying an additional 191,873 shares during the period. 55.54% of the stock is owned by institutional investors and hedge funds.

StepStone Group Stock Down 2.0%

NASDAQ:STEP opened at $45.46 on Thursday. The firm's fifty day simple moving average is $61.41 and its 200-day simple moving average is $62.57. The stock has a market cap of $5.42 billion, a PE ratio of -6.55 and a beta of 1.39. StepStone Group Inc. has a fifty-two week low of $40.07 and a fifty-two week high of $77.79.

StepStone Group (NASDAQ:STEP - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.60 by $0.05. The firm had revenue of $241.13 million during the quarter, compared to analysts' expectations of $363.92 million. StepStone Group had a negative net margin of 30.66% and a positive return on equity of 31.44%. The business's revenue for the quarter was up 102.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.44 earnings per share. Equities analysts anticipate that StepStone Group Inc. will post 1.82 earnings per share for the current year.

StepStone Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 27th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Friday, February 27th. StepStone Group's dividend payout ratio (DPR) is presently -16.14%.

StepStone Group declared that its Board of Directors has initiated a stock repurchase program on Monday, March 9th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to purchase up to 1.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on STEP shares. Zacks Research downgraded StepStone Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Morgan Stanley set a $72.00 price objective on shares of StepStone Group in a research note on Tuesday, January 27th. Evercore set a $73.00 price objective on shares of StepStone Group in a research report on Friday, February 6th. Weiss Ratings restated a "sell (d+)" rating on shares of StepStone Group in a research note on Thursday, January 22nd. Finally, Wall Street Zen upgraded shares of StepStone Group from a "sell" rating to a "hold" rating in a research note on Saturday, January 10th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $78.86.

Insider Activity at StepStone Group

In other news, CEO Scott W. Hart sold 10,000 shares of the business's stock in a transaction that occurred on Monday, January 26th. The stock was sold at an average price of $72.52, for a total transaction of $725,200.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 16.47% of the stock is owned by company 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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