StepStone Group (NASDAQ:STEP) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded StepStone Group to “sell” from “hold,” although the broader analyst consensus remains “Moderate Buy” with a $70.88 price target.
• StepStone’s latest quarterly results fell short of expectations, with EPS of $0.48 versus $0.50 expected and revenue of $300.6 million versus estimates of $309.32 million.
• The stock opened at $50.40 after a reported 3% decline; insiders made mixed moves, while institutional investors—including Vanguard, Wellington and T. Rowe Price—expanded their holdings.

StepStone Group (NASDAQ:STEP - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

A number of other equities research analysts have also weighed in on the company. Evercore reaffirmed an "outperform" rating and issued a $56.00 price objective on shares of StepStone Group in a report on Friday, August 7th. Barclays increased their target price on StepStone Group from $60.00 to $62.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Oppenheimer reduced their price target on StepStone Group from $90.00 to $85.00 and set an "outperform" rating for the company in a report on Thursday, May 21st. Weiss Ratings restated a "sell (d-)" rating on shares of StepStone Group in a research note on Monday, July 20th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and set a $58.00 price objective on shares of StepStone Group in a report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $70.88.

StepStone Group Stock Down 3.0%

STEP stock opened at $50.40 on Friday. The stock has a market capitalization of $6.01 billion, a PE ratio of -6.53 and a beta of 1.27. The company has a fifty day moving average of $44.26 and a 200-day moving average of $49.47. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.24 and a current ratio of 0.19. StepStone Group has a one year low of $38.85 and a one year high of $77.79.

StepStone Group (NASDAQ:STEP - Get Free Report) last issued its quarterly earnings results 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 firm had revenue of $300.60 million for the quarter, compared to analyst estimates of $309.32 million. StepStone Group had a positive return on equity of 43.38% and a negative net margin of 30.53%. As a group, analysts expect that StepStone Group will post 2.53 EPS for the current year.

Insider Transactions at StepStone Group

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

Institutional Trading of StepStone Group

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in StepStone Group by 9.4% in the fourth quarter. Vanguard Group Inc. now owns 8,449,878 shares of the company's stock valued at $542,229,000 after purchasing an additional 728,410 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of StepStone Group by 8.8% during the 4th quarter. Wellington Management Group LLP now owns 6,227,753 shares of the company's stock worth $399,635,000 after buying an additional 504,680 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of StepStone Group by 16.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,102,666 shares of the company's stock worth $327,439,000 after buying an additional 724,201 shares during the last quarter. Millennium Management LLC boosted its position in shares of StepStone Group by 14.4% in the 4th quarter. Millennium Management LLC now owns 4,456,150 shares of the company's stock worth $285,951,000 after buying an additional 561,176 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of StepStone Group by 2.4% in the 3rd quarter. Invesco Ltd. now owns 4,138,979 shares of the company's stock worth $270,317,000 after buying an additional 95,339 shares in the last quarter. 55.54% of the stock is currently owned by hedge funds and other institutional investors.

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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