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

Key Points

• StepStone Group has a consensus analyst rating of “Moderate Buy” from 10 covering analysts, with seven buy ratings, two holds, and one sell. The average 1-year price target is about $71.88.
• The company recently beat quarterly expectations, reporting EPS of $0.57 versus the $0.51 estimate and revenue of $305.84 million versus $292.11 million expected. Revenue rose 3.4% year over year, though earnings were below the prior-year quarter.
• StepStone also announced a $100 million share buyback and a quarterly dividend of $0.28 per share, implying a 2.5% annualized yield. Insider activity was mixed, with one executive buying shares and another selling shares under a 10b5-1 plan.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the ten analysts that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and seven have assigned a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $71.8750.

Several brokerages recently commented on STEP. Weiss Ratings cut StepStone Group from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, April 22nd. Evercore reissued an "outperform" rating and set a $60.00 price target on shares of StepStone Group in a research report on Thursday, May 21st. BMO Capital Markets increased their price target on StepStone Group from $54.00 to $62.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. UBS Group began coverage on StepStone Group in a research report on Thursday, April 2nd. They set a "buy" rating and a $60.00 price target for the company. Finally, Barclays increased their price target on StepStone Group from $61.00 to $62.00 and gave the company an "overweight" rating in a research report on Thursday, May 21st.

StepStone Group Stock Performance

NASDAQ:STEP opened at $45.46 on Tuesday. The company has a market cap of $5.43 billion, a PE ratio of -6.69 and a beta of 1.29. StepStone Group has a 52-week low of $40.58 and a 52-week high of $77.79. The stock has a 50-day simple moving average of $50.63 and a 200 day simple moving average of $55.88.

StepStone Group (NASDAQ:STEP - Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.06. The business had revenue of $305.84 million during the quarter, compared to the consensus estimate of $292.11 million. StepStone Group had a positive return on equity of 37.69% and a negative net margin of 26.88%.StepStone Group's quarterly revenue was up 3.4% on a year-over-year basis. During the same period last year, the company earned $0.68 earnings per share. On average, research analysts predict that StepStone Group will post 2.57 earnings per share for the current fiscal year.

StepStone Group announced that its board has initiated a share buyback plan on Monday, March 9th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to repurchase up to 1.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

StepStone Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, June 15th. StepStone Group's dividend payout ratio (DPR) is presently -16.47%.

Insider Buying and Selling

In other StepStone Group news, insider Michael I. Mccabe acquired 120,000 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was bought 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 in the company, valued at approximately $18,128,499.30. This represents a 38.32% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Jose A. Fernandez sold 2,290 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.64, for a total value of $97,645.60. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.47% of the company's stock.

Institutional Trading of StepStone Group

Hedge funds have recently added to or reduced their stakes in the company. William Blair Investment Management LLC lifted its holdings in StepStone Group by 7.4% during the 4th quarter. William Blair Investment Management LLC now owns 670,192 shares of the company's stock worth $43,006,000 after purchasing an additional 46,273 shares during the last quarter. Granahan Investment Management LLC lifted its holdings in StepStone Group by 176.5% during the 3rd quarter. Granahan Investment Management LLC now owns 381,455 shares of the company's stock worth $24,913,000 after purchasing an additional 243,495 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in StepStone Group by 1,598.9% during the 3rd quarter. Victory Capital Management Inc. now owns 203,873 shares of the company's stock worth $13,315,000 after purchasing an additional 191,873 shares during the last quarter. Westfield Capital Management Co. LP acquired a new stake in StepStone Group during the 3rd quarter worth approximately $50,859,000. Finally, Hudson Bay Capital Management LP lifted its holdings in StepStone Group by 213.2% during the 3rd quarter. Hudson Bay Capital Management LP now owns 156,855 shares of the company's stock worth $10,244,000 after purchasing an additional 106,781 shares during the last quarter. 55.54% of the stock is owned by institutional investors and hedge funds.

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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