Wellington Management Group LLP Has $214.66 Million Holdings in StepStone Group Inc. $STEP

Key Points

• Wellington Management reduced its StepStone Group position by 1%, selling 50,110 shares and retaining 5.19 million shares valued at approximately $214.66 million, or 4.35% of the company. Institutional investors collectively own 55.54% of StepStone.
• StepStone reported quarterly EPS of $0.48 and revenue of $300.6 million, both below analyst expectations. The company increased its quarterly dividend to $0.33, equivalent to a 2.6% annualized yield.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and a $71.25 average price target, despite some target-price cuts and one recent downgrade to “sell.”

Wellington Management Group LLP decreased its position in shares of StepStone Group Inc. (NASDAQ:STEP - Free Report) by 1.0% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 5,189,963 shares of the company's stock after selling 50,110 shares during the quarter. Wellington Management Group LLP owned about 4.35% of StepStone Group worth $214,657,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of STEP. William Blair Investment Management LLC raised its stake in StepStone Group by 7.4% during the fourth quarter. William Blair Investment Management LLC now owns 670,192 shares of the company's stock worth $43,006,000 after buying an additional 46,273 shares during the last quarter. Hsbc Holdings PLC bought a new stake in StepStone Group during the first quarter valued at $3,898,000. Rockefeller Capital Management L.P. boosted its position in StepStone Group by 24.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 258,448 shares of the company's stock valued at $16,585,000 after acquiring an additional 51,125 shares during the last quarter. Advent International L.P. acquired a new stake in StepStone Group during the 1st quarter worth about $5,733,000. Finally, Millennium Management LLC grew its holdings in StepStone Group by 14.4% during the 4th quarter. Millennium Management LLC now owns 4,456,150 shares of the company's stock worth $285,951,000 after acquiring an additional 561,176 shares during the period. Institutional investors and hedge funds own 55.54% of the company's stock.

StepStone Group Price Performance

Shares of NASDAQ STEP opened at $50.32 on Monday. The firm's 50-day moving average price is $45.21 and its 200-day moving average price is $48.08. StepStone Group Inc. has a 1-year low of $38.85 and a 1-year high of $77.79. The firm has a market capitalization of $6.01 billion, a P/E ratio of -6.52 and a beta of 1.27. 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 data on Thursday, August 6th. The company reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.50 by ($0.02). The company had revenue of $300.60 million for the quarter, compared to the consensus estimate of $309.32 million. StepStone Group had a positive return on equity of 43.38% and a negative net margin of 30.53%. Equities research analysts anticipate that StepStone Group Inc. will post 2.53 earnings per share for the current fiscal year.

StepStone Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a $0.33 dividend. The ex-dividend date is Monday, August 31st. This is an increase from StepStone Group's previous quarterly dividend of $0.28. This represents a $1.32 annualized dividend and a yield of 2.6%. StepStone Group's dividend payout ratio is currently -14.51%.

Insider Buying and Selling

In other StepStone Group news, COO Jose A. Fernandez sold 2,290 shares of the firm's stock in a transaction that occurred on 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 Securities & Exchange Commission, 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 acquired 120,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were purchased at an average price of $41.85 per share, with a total value of $5,022,000.00. Following the acquisition, the insider owned 433,178 shares of the company's stock, valued at approximately $18,128,499.30. This represents a 38.32% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 15.70% of the company's stock.

Analyst Upgrades and Downgrades

STEP has been the subject of several research analyst reports. Wall Street Zen lowered StepStone Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. BMO Capital Markets restated an "outperform" rating and set a $58.00 target price on shares of StepStone Group in a research report on Friday, August 7th. Morgan Stanley decreased their target price on StepStone Group from $72.00 to $63.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 21st. UBS Group lifted their target price on StepStone Group from $63.00 to $69.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Oppenheimer dropped their price target on StepStone Group from $90.00 to $88.00 and set an "outperform" rating on the stock in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $71.25.

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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