StepStone Group (NASDAQ:STEP) Reaches New 1-Year Low - Here's Why

Key Points

• StepStone Group hit a new 52-week low on Thursday, trading as low as $38.85 and finishing down about 3.9% as investors pushed the stock below its prior close of $40.65.
• Despite the decline, analysts remain generally positive: several firms recently maintained or raised targets, and the stock carries an average “Moderate Buy” rating with a consensus price target of $71.88.
• The company recently beat quarterly earnings estimates and continues to return capital through a quarterly dividend and a $100 million share buyback program, while insider buying has also been notable.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report) hit a new 52-week low during trading on Thursday . The stock traded as low as $38.85 and last traded at $39.2610, with a volume of 964163 shares traded. The stock had previously closed at $40.65.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on STEP shares. Weiss Ratings lowered StepStone Group from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, April 22nd. Barclays lifted their price target on shares of StepStone Group from $61.00 to $62.00 and gave the stock an "overweight" rating in a research note on Thursday, May 21st. Evercore reissued an "outperform" rating and issued a $60.00 price objective on shares of StepStone Group in a report on Thursday, May 21st. BMO Capital Markets raised their target price on StepStone Group from $54.00 to $62.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Finally, UBS Group initiated coverage on StepStone Group in a report on Thursday, April 2nd. They set a "buy" rating and a $60.00 price target for the company. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $71.88.

StepStone Group Stock Down 3.9%

The firm has a market capitalization of $4.66 billion, a P/E ratio of -5.74 and a beta of 1.31. The stock has a fifty day simple moving average of $49.03 and a 200 day simple moving average of $54.75.

StepStone Group (NASDAQ:STEP - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The company reported $0.57 EPS for the quarter, topping 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 revenue was up 3.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.68 EPS. Research analysts anticipate that StepStone Group Inc. will post 2.57 earnings per share for the current fiscal year.

StepStone Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 2.9%. The ex-dividend date was Monday, June 15th. StepStone Group's payout ratio is currently -16.47%.

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

Insider Activity at StepStone Group

In other StepStone Group news, insider Michael I. Mccabe bought 120,000 shares of the business's stock in a transaction dated Thursday, June 11th. The shares were purchased at an average price of $41.85 per share, with a total value of $5,022,000.00. Following the completion of the purchase, the insider owned 433,178 shares in the company, valued at $18,128,499.30. This represents a 38.32% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, COO Jose A. Fernandez sold 2,290 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.64, for a total value of $97,645.60. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.47% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC boosted its position in StepStone Group by 13.1% in the 4th quarter. GAMMA Investing LLC now owns 1,413 shares of the company's stock valued at $91,000 after buying an additional 164 shares during the period. Oregon Public Employees Retirement Fund boosted its holdings in shares of StepStone Group by 1.2% in the first quarter. Oregon Public Employees Retirement Fund now owns 16,895 shares of the company's stock valued at $806,000 after purchasing an additional 200 shares during the period. Fifth Third Bancorp boosted its holdings in shares of StepStone Group by 58.6% in the fourth quarter. Fifth Third Bancorp now owns 544 shares of the company's stock valued at $35,000 after purchasing an additional 201 shares during the period. Salomon & Ludwin LLC grew its stake in StepStone Group by 105.0% in the fourth quarter. Salomon & Ludwin LLC now owns 414 shares of the company's stock worth $28,000 after purchasing an additional 212 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its stake in StepStone Group by 1.2% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 18,234 shares of the company's stock worth $870,000 after purchasing an additional 213 shares in the last quarter. 55.54% of the stock is currently owned by institutional investors.

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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