StepStone Group (NASDAQ:STEP) Hits New 12-Month Low - What's Next?

Key Points

• StepStone Group (NASDAQ:STEP) hit a new 52-week low, trading as low as $40.40 amid recent weakness; its share price is now well below its 50-day and 200-day moving averages.
• Despite the slump, analysts remain generally upbeat: the stock has a Moderate Buy consensus with a target price of $71.88, and several firms recently reiterated buy/outperform ratings.
• The company recently beat earnings and revenue estimates, announced a $0.28 quarterly dividend, and authorized a $100 million share buyback; insider buying also showed confidence, though one executive sale offset it.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Friday . The company traded as low as $40.40 and last traded at $40.6650, with a volume of 193078 shares changing hands. The stock had previously closed at $40.91.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on STEP shares. BMO Capital Markets lifted their price target on StepStone Group from $54.00 to $62.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Oppenheimer reduced their target price on StepStone Group from $90.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, May 21st. Barclays lifted their target price on StepStone Group from $61.00 to $62.00 and gave the stock an "overweight" rating in a research report on Thursday, May 21st. Evercore reiterated an "outperform" rating and issued a $60.00 price target on shares of StepStone Group in a report on Thursday, May 21st. Finally, UBS Group initiated coverage on StepStone Group in a research report on Thursday, April 2nd. They set a "buy" rating and a $60.00 price target on the stock. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $71.88.

StepStone Group Stock Performance

The stock has a 50 day moving average of $50.17 and a 200 day moving average of $55.43. The stock has a market capitalization of $4.81 billion, a P/E ratio of -5.92 and a beta of 1.29.

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

StepStone Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a $0.28 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.12 annualized dividend and a yield of 2.8%. StepStone Group's dividend payout ratio (DPR) is currently -16.47%.

StepStone Group announced that its Board of Directors has authorized a stock buyback plan on Monday, March 9th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 1.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at StepStone Group

In other StepStone Group news, insider Michael I. Mccabe purchased 120,000 shares of the business's stock in a transaction dated Thursday, June 11th. The shares were bought at an average price of $41.85 per share, with a total value of $5,022,000.00. Following the completion of the acquisition, the insider owned 433,178 shares in the company, valued at approximately $18,128,499.30. This represents a 38.32% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Jose A. Fernandez sold 100,000 shares of StepStone Group stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $48.60, for a total value of $4,860,000.00. Following the sale, the chief operating officer directly owned 102,290 shares in the company, valued at approximately $4,971,294. This trade represents a 49.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.47% of the company's stock.

Institutional Trading of StepStone Group

Large investors have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC boosted its position in StepStone Group by 105.0% during the 4th quarter. Salomon & Ludwin LLC now owns 414 shares of the company's stock worth $28,000 after acquiring an additional 212 shares during the period. Aster Capital Management DIFC Ltd increased its holdings in shares of StepStone Group by 2,285.7% during the third quarter. Aster Capital Management DIFC Ltd now owns 501 shares of the company's stock valued at $33,000 after purchasing an additional 480 shares during the period. Essential Partners LLC raised its stake in shares of 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 purchasing an additional 694 shares in the last quarter. Quarry LP lifted its holdings in StepStone Group by 155.7% in 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. Finally, Fifth Third Bancorp lifted its holdings in StepStone Group by 58.6% in 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. 55.54% of the stock is currently owned by institutional investors and hedge funds.

About StepStone Group

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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