StepStone Group Inc. $STEP Shares Bought by Granahan Investment Management LLC

Key Points

• Granahan Investment Management increased its stake in StepStone by 176.5% in Q3, buying an additional 243,495 shares to own 381,455 shares worth about $24.9 million (≈0.32% of the company).
• StepStone's board authorized a $100 million buyback (up to ~1.8% of shares) and the company pays a quarterly dividend of $0.28 (annualized $1.12) for a ~2.5% yield.
• Analyst sentiment is mixed but overall positive with a consensus rating of "Moderate Buy" and an average target price of $78.86, while individual notes range from Barclays' move to overweight with a $55 target to JPMorgan raising its target to $91.

Granahan Investment Management LLC grew its holdings in shares of StepStone Group Inc. (NASDAQ:STEP - Free Report) by 176.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 381,455 shares of the company's stock after buying an additional 243,495 shares during the period. Granahan Investment Management LLC owned 0.32% of StepStone Group worth $24,913,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. CWM LLC grew its holdings in StepStone Group by 14.4% in the 3rd quarter. CWM LLC now owns 1,860 shares of the company's stock worth $121,000 after buying an additional 234 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in StepStone Group by 35.5% during the 3rd quarter. Nisa Investment Advisors LLC now owns 916 shares of the company's stock valued at $60,000 after acquiring an additional 240 shares in the last quarter. Mackenzie Financial Corp boosted its position in StepStone Group by 7.5% during the 3rd quarter. Mackenzie Financial Corp now owns 4,409 shares of the company's stock worth $288,000 after acquiring an additional 307 shares during the period. Clearstead Advisors LLC boosted its position in StepStone Group by 127.8% during the 3rd quarter. Clearstead Advisors LLC now owns 581 shares of the company's stock worth $38,000 after acquiring an additional 326 shares during the period. Finally, WINTON GROUP Ltd grew its stake in shares of StepStone Group by 1.8% in the second quarter. WINTON GROUP Ltd now owns 22,143 shares of the company's stock worth $1,229,000 after purchasing an additional 397 shares in the last quarter. 55.54% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently commented on STEP. Barclays raised StepStone Group from an "equal weight" rating to an "overweight" rating and lowered their price target for the company from $67.00 to $55.00 in a report on Monday, March 2nd. Evercore set a $73.00 target price on shares of StepStone Group in a research report on Friday, February 6th. Wall Street Zen raised shares of StepStone Group from a "sell" rating to a "hold" rating in a research note on Saturday, January 10th. Weiss Ratings restated a "sell (d+)" rating on shares of StepStone Group in a research report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. upped their price target on shares of StepStone Group from $84.00 to $91.00 and gave the stock an "overweight" rating in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $78.86.

Insider Buying and Selling at StepStone Group

In other news, CEO Scott W. Hart sold 10,000 shares of StepStone Group stock in a transaction that occurred on Monday, January 26th. The shares were sold at an average price of $72.52, for a total value of $725,200.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 16.47% of the company's stock.

StepStone Group Stock Performance

STEP opened at $45.09 on Monday. The company has a market capitalization of $5.37 billion, a PE ratio of -6.50 and a beta of 1.39. The stock's fifty day moving average is $60.57 and its 200-day moving average is $62.32. StepStone Group Inc. has a one year low of $40.07 and a one year high of $77.79.

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

StepStone Group Announces Dividend

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

StepStone Group announced that its Board of Directors has authorized a share buyback program on Monday, March 9th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 1.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

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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