StepStone Group (NASDAQ:STEP) Shares Down 6.5% - Here's What Happened

Key Points

• StepStone Group shares fell 6.5% to about $41, with trading volume down 73% from its average. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $67.44, despite mixed recent target revisions.
• The company recently increased its quarterly dividend from $0.28 to $0.33 per share, while its latest earnings missed estimates for both EPS and revenue.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report)'s share price was down 6.5% on Tuesday. The stock traded as low as $41.13 and last traded at $41.00. 332,885 shares traded hands during trading, a decline of 73% from the average daily volume of 1,231,844 shares. The stock had previously closed at $43.84.

Analysts Set New Price Targets

STEP has been the subject of a number of research reports. Royal Bank Of Canada began coverage on StepStone Group in a report on Wednesday, September 9th. They issued an "outperform" rating and a $65.00 price target for the company. Wells Fargo & Company began coverage on StepStone Group in a research report on Friday, October 2nd. They set an "overweight" rating and a $55.00 target price for the company. Barclays upped their target price on StepStone Group from $60.00 to $62.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Morgan Stanley dropped their price target on StepStone Group from $72.00 to $63.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 21st. Finally, BMO Capital Markets restated an "outperform" rating and set a $58.00 price target on shares of StepStone Group in a research note on Friday, August 7th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $67.44.

StepStone Group Trading Down 6.9%

The company has a market capitalization of $4.87 billion, a PE ratio of -5.29 and a beta of 1.29. The company's fifty day moving average is $47.93 and its 200-day moving average is $47.69. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.19 and a quick ratio of 0.19.

StepStone Group (NASDAQ:STEP - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.48 earnings per share 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 analysts' expectations of $309.32 million. StepStone Group had a positive return on equity of 43.38% and a negative net margin of 30.53%. On average, analysts anticipate that StepStone Group Inc. will post 2.50 EPS for the current fiscal year.

StepStone Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st were given a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Monday, August 31st. This is a positive change from StepStone Group's previous quarterly dividend of $0.28. StepStone Group's dividend payout ratio is presently -17.10%.

Institutional Investors Weigh In On StepStone Group

Institutional investors have recently added to or reduced their stakes in the stock. Essential Partners LLC lifted its position in StepStone Group by 17,350.0% during the first quarter. Essential Partners LLC now owns 698 shares of the company's stock valued at $33,000 after acquiring an additional 694 shares during the last quarter. GAMMA Investing LLC grew its holdings in StepStone Group by 45.5% in the third quarter. GAMMA Investing LLC now owns 1,036 shares of the company's stock worth $45,000 after purchasing an additional 324 shares during the last quarter. Nykredit A S purchased a new position in StepStone Group in the second quarter worth $119,000. Sanctuary Advisors LLC grew its holdings in StepStone Group by 8.8% in the first quarter. Sanctuary Advisors LLC now owns 4,571 shares of the company's stock worth $218,000 after purchasing an additional 368 shares during the last quarter. Finally, Farther Finance Advisors LLC increased its position in shares of StepStone Group by 30.9% during the third quarter. Farther Finance Advisors LLC now owns 7,187 shares of the company's stock worth $312,000 after purchasing an additional 1,697 shares in the last quarter. Institutional investors own 55.54% of the company's stock.

About StepStone Group

StepStone Group, Inc is a global investment firm focused on private markets. The company provides investment solutions and advisory services designed to help institutional and private wealth clients build diversified portfolios of alternative investments.

Its platform spans private equity, venture capital, private debt, infrastructure and real estate. StepStone invests through primary commitments to funds, secondary-market transactions and direct or co-investments, and also offers customized portfolios and separately managed investment solutions.

StepStone serves pension funds, sovereign wealth funds, endowments and foundations, insurance companies, family offices and private wealth investors across North America, Europe, Asia and other international markets.

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