StepStone Group Inc. (NASDAQ:STEP) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• "Moderate Buy" is the consensus from 10 analysts (7 buy, 2 hold, 1 sell) with an average 12‑month target of $71.75.
• StepStone announced a $100 million share buyback (up to 1.8% of shares) and pays a quarterly dividend of $0.28 ($1.12 annualized, ~2.1% yield); last quarter it beat EPS estimates ($0.65 vs. $0.60) while revenue rose 102.7% YoY but missed expectations.
• STEP trades around $52.74 with a 52‑week range of $40.58–$77.79, a market cap of about $6.28 billion and a reported trailing PE of -7.60.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report) has received an average rating of "Moderate Buy" from the ten analysts that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and seven have given a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $71.75.

STEP has been the topic of several research reports. Zacks Research downgraded shares of StepStone Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Oppenheimer decreased their price target on shares of StepStone Group from $104.00 to $90.00 and set an "outperform" rating on the stock in a research note on Monday, April 13th. BMO Capital Markets decreased their price target on shares of StepStone Group from $70.00 to $58.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 24th. Barclays upped their price objective on shares of StepStone Group from $55.00 to $61.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 8th. Finally, Wall Street Zen raised shares of StepStone Group from a "sell" rating to a "hold" rating in a research report on Saturday, January 10th.

Institutional Investors Weigh In On StepStone Group

Institutional investors and hedge funds have recently bought and sold shares of the company. Salomon & Ludwin LLC lifted its position in StepStone Group by 105.0% during the fourth quarter. Salomon & Ludwin LLC now owns 414 shares of the company's stock worth $28,000 after purchasing an additional 212 shares during the period. Aster Capital Management DIFC Ltd lifted its position in StepStone Group by 2,285.7% during the third quarter. Aster Capital Management DIFC Ltd now owns 501 shares of the company's stock worth $33,000 after purchasing an additional 480 shares during the period. Quarry LP lifted its position in StepStone Group by 155.7% during the third quarter. Quarry LP now owns 514 shares of the company's stock worth $34,000 after purchasing an additional 313 shares during the period. Fifth Third Bancorp lifted its position in StepStone Group by 58.6% during the fourth quarter. Fifth Third Bancorp now owns 544 shares of the company's stock worth $35,000 after purchasing an additional 201 shares during the period. Finally, Clearstead Advisors LLC lifted its position in StepStone Group by 127.8% during the third quarter. Clearstead Advisors LLC now owns 581 shares of the company's stock worth $38,000 after purchasing an additional 326 shares during the period. Institutional investors own 55.54% of the company's stock.

StepStone Group Stock Performance

STEP stock opened at $52.74 on Monday. The company's 50-day simple moving average is $48.28 and its 200 day simple moving average is $58.93. StepStone Group has a 52 week low of $40.58 and a 52 week high of $77.79. The company has a market capitalization of $6.28 billion, a PE ratio of -7.60 and a beta of 1.34.

StepStone Group (NASDAQ:STEP - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.60 by $0.05. StepStone Group had a negative net margin of 30.66% and a positive return on equity of 31.44%. The business had revenue of $241.13 million for the quarter, compared to the consensus estimate of $363.92 million. During the same period in the prior year, the company posted $0.44 earnings per share. StepStone Group's revenue was up 102.7% compared to the same quarter last year. On average, analysts forecast that StepStone Group will post 2.1 EPS for the current year.

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

StepStone Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $1.12 annualized dividend and a yield of 2.1%. StepStone Group's dividend payout ratio is currently -16.14%.

StepStone Group Company 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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