Granahan Investment Management LLC Lowers Stock Holdings in StepStone Group Inc. $STEP

Key Points

• Granahan Investment Management cut its StepStone Group stake by 24.3% in the fourth quarter, though it still held 288,709 shares worth about $18.5 million. Institutional investors overall still own 55.54% of the company.
• Insider trading was mixed: COO Jose A. Fernandez sold 2,290 shares, while insider Michael I. Mccabe bought 120,000 shares for about $5.0 million, boosting his position by 38.32%.
• StepStone posted solid quarterly results, beating EPS and revenue estimates, and it also announced a $100 million share repurchase program plus a $0.28 quarterly dividend. Analysts currently have a consensus rating of “Moderate Buy” with an average target price of $71.88.

Granahan Investment Management LLC decreased its position in shares of StepStone Group Inc. (NASDAQ:STEP - Free Report) by 24.3% during the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 288,709 shares of the company's stock after selling 92,746 shares during the quarter. Granahan Investment Management LLC owned approximately 0.24% of StepStone Group worth $18,526,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Salomon & Ludwin LLC lifted its stake in shares of StepStone Group by 105.0% during the 4th quarter. Salomon & Ludwin LLC now owns 414 shares of the company's stock valued at $28,000 after buying an additional 212 shares in the last quarter. Aster Capital Management DIFC Ltd lifted its stake in shares of StepStone Group by 2,285.7% during the 3rd quarter. Aster Capital Management DIFC Ltd now owns 501 shares of the company's stock valued at $33,000 after buying an additional 480 shares in the last quarter. Quarry LP lifted its stake in shares of StepStone Group by 155.7% during the 3rd quarter. Quarry LP now owns 514 shares of the company's stock valued at $34,000 after buying an additional 313 shares in the last quarter. Fifth Third Bancorp lifted its stake in shares of StepStone Group by 58.6% during the 4th quarter. Fifth Third Bancorp now owns 544 shares of the company's stock valued at $35,000 after buying an additional 201 shares in the last quarter. Finally, Clearstead Advisors LLC lifted its stake in shares of StepStone Group by 127.8% during the 3rd quarter. Clearstead Advisors LLC now owns 581 shares of the company's stock valued at $38,000 after buying an additional 326 shares in the last quarter. Hedge funds and other institutional investors own 55.54% of the company's stock.

Insider Transactions at StepStone Group

In other StepStone Group news, insider Michael I. Mccabe bought 120,000 shares of StepStone Group stock in a transaction dated Thursday, June 11th. The shares were purchased at an average cost of $41.85 per share, for a total transaction of $5,022,000.00. Following the acquisition, the insider directly owned 433,178 shares in the company, valued at approximately $18,128,499.30. This represents a 38.32% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, 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 transaction of $97,645.60. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.47% of the company's stock.

StepStone Group Stock Performance

Shares of NASDAQ STEP opened at $48.31 on Wednesday. The company has a market cap of $5.77 billion, a P/E ratio of -7.10 and a beta of 1.29. The firm's fifty day moving average is $50.78 and its two-hundred day moving average is $56.35. StepStone Group Inc. has a 52-week low of $40.58 and a 52-week high of $77.79.

StepStone Group (NASDAQ:STEP - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.51 by $0.06. StepStone Group had a negative net margin of 26.88% and a positive return on equity of 37.69%. The company had revenue of $305.84 million for the quarter, compared to the consensus estimate of $292.11 million. During the same period in the previous year, the firm posted $0.68 EPS. StepStone Group's revenue for the quarter was up 3.4% compared to the same quarter last year. As a group, analysts forecast that StepStone Group Inc. will post 2.57 EPS for the current fiscal year.

StepStone Group announced that its board has authorized a share repurchase program on Monday, March 9th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 1.8% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

StepStone Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a $0.28 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. StepStone Group's payout ratio is -16.47%.

Analyst Ratings Changes

STEP has been the topic of a number of analyst reports. Barclays lifted their target price on shares of StepStone Group from $61.00 to $62.00 and gave the company an "overweight" rating in a research note on Thursday, May 21st. UBS Group initiated coverage on shares of StepStone Group in a research note on Thursday, April 2nd. They set a "buy" rating and a $60.00 target price on the stock. BMO Capital Markets lifted their target price on shares of StepStone Group from $54.00 to $62.00 and gave the company an "outperform" rating in a research note on Thursday, May 21st. Oppenheimer lowered their target price on shares of StepStone Group from $90.00 to $85.00 and set an "outperform" rating on the stock in a research note on Thursday, May 21st. Finally, Evercore reiterated an "outperform" rating and issued a $60.00 price target on shares of StepStone Group in a report on Thursday, May 21st. Seven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $71.88.

StepStone Group 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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