Hsbc Holdings PLC Makes New $3.90 Million Investment in StepStone Group Inc. $STEP

Key Points

• HSBC Holdings PLC disclosed a new position in StepStone Group, buying 80,721 shares valued at about $3.9 million in the first quarter. The stake represented roughly 0.07% of the company.
• Institutional ownership in StepStone remains significant, with firms like Vanguard, Wellington, and Price T Rowe also increasing their holdings. In total, 55.54% of the stock is owned by institutional investors.
• Analysts remain cautiously positive on STEP, with a consensus rating of “Moderate Buy” and an average price target of $69. The stock recently traded at $42.61, well below that target, while the company also reported quarterly earnings and paid a $0.28 dividend.

Hsbc Holdings PLC purchased a new stake in StepStone Group Inc. (NASDAQ:STEP - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 80,721 shares of the company's stock, valued at approximately $3,898,000. Hsbc Holdings PLC owned 0.07% of StepStone Group as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Vanguard Group Inc. lifted its position in shares of StepStone Group by 9.4% during the 4th quarter. Vanguard Group Inc. now owns 8,449,878 shares of the company's stock valued at $542,229,000 after acquiring an additional 728,410 shares during the period. Wellington Management Group LLP grew its holdings in StepStone Group by 8.8% in the fourth quarter. Wellington Management Group LLP now owns 6,227,753 shares of the company's stock worth $399,635,000 after purchasing an additional 504,680 shares during the period. Price T Rowe Associates Inc. MD increased its stake in StepStone Group by 16.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,102,666 shares of the company's stock valued at $327,439,000 after purchasing an additional 724,201 shares in the last quarter. Millennium Management LLC increased its stake in StepStone Group by 14.4% in the fourth quarter. Millennium Management LLC now owns 4,456,150 shares of the company's stock valued at $285,951,000 after purchasing an additional 561,176 shares in the last quarter. Finally, Invesco Ltd. raised its holdings in shares of StepStone Group by 2.4% during the third quarter. Invesco Ltd. now owns 4,138,979 shares of the company's stock valued at $270,317,000 after purchasing an additional 95,339 shares during the period. 55.54% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on STEP. 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 research report on Thursday, May 21st. Evercore reiterated an "outperform" rating and issued a $60.00 price target on shares of StepStone Group in a report on Thursday, May 21st. Morgan Stanley reduced their price objective on StepStone Group from $72.00 to $63.00 and set an "equal weight" rating for the company in a research note on Tuesday. BMO Capital Markets decreased their price objective on StepStone Group from $62.00 to $50.00 and set an "outperform" rating for the company in a report on Monday, July 13th. Finally, UBS Group began coverage on StepStone Group in a research report on Thursday, April 2nd. They set a "buy" rating and a $60.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, StepStone Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $69.00.

StepStone Group Price Performance

NASDAQ STEP opened at $42.61 on Friday. StepStone Group Inc. has a 1 year low of $38.85 and a 1 year high of $77.79. The firm has a market cap of $5.09 billion, a price-to-earnings ratio of -6.27 and a beta of 1.31. The company has a fifty day moving average price of $45.18 and a 200-day moving average price of $52.19.

StepStone Group (NASDAQ:STEP - Get Free Report) last announced its earnings results on Wednesday, May 20th. The company reported $0.57 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $292.11 million. During the same quarter in the prior year, the company posted $0.68 earnings per share. The firm's revenue for the quarter was up 3.4% on a year-over-year basis. On average, research analysts anticipate that StepStone Group Inc. will post 2.54 EPS for the current fiscal year.

StepStone Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a $0.28 dividend. The ex-dividend date was Monday, June 15th. This represents a $1.12 annualized dividend and a yield of 2.6%. StepStone Group's dividend payout ratio (DPR) is -16.47%.

Insider Activity at StepStone Group

In other news, COO Jose A. Fernandez sold 100,000 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $48.60, for a total value of $4,860,000.00. Following the completion of the transaction, the chief operating officer directly owned 102,290 shares of the company's stock, valued at $4,971,294. This represents a 49.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael I. Mccabe purchased 120,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average cost of $41.85 per share, with a total value of $5,022,000.00. Following the completion of the transaction, the insider directly owned 433,178 shares of the company's stock, valued at $18,128,499.30. The trade was a 38.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 16.47% of the stock is owned by company insiders.

About StepStone Group

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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