StepStone Group (NASDAQ:STEP) Sees Strong Trading Volume - Should You Buy?

Key Points

• StepStone Group shares fell 5.1% to about $47.72 despite unusually heavy trading volume, with 2.72 million shares changing hands—114% above the prior session.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $70.62; recent targets range from $56 to $85.
• The company slightly missed quarterly expectations, reporting $0.48 in EPS versus $0.50 expected and revenue of $300.6 million versus $309.3 million expected. StepStone also pays a quarterly dividend of $0.28 per share, equal to a 2.3% annualized yield.

Shares of StepStone Group Inc. (NASDAQ:STEP - Get Free Report) saw unusually-strong trading volume on Friday . 2,720,186 shares were traded during mid-day trading, an increase of 114% from the previous session's volume of 1,268,895 shares.The stock last traded at $47.7190 and had previously closed at $50.33.

Analyst Upgrades and Downgrades

STEP has been the topic of a number of research analyst reports. BMO Capital Markets reiterated an "outperform" rating and set a $58.00 price objective on shares of StepStone Group in a research note on Friday. Evercore restated an "outperform" rating and issued a $56.00 target price on shares of StepStone Group in a research note on Friday. Oppenheimer reduced their price target on shares of StepStone Group from $90.00 to $85.00 and set an "outperform" rating on the stock in a research report on Thursday, May 21st. UBS Group reiterated a "buy" rating and issued a $69.00 price target on shares of StepStone Group in a research note on Friday. Finally, Barclays reissued an "overweight" rating on shares of StepStone Group in a report on Friday. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $70.62.

StepStone Group Trading Down 5.1%

The stock's 50-day moving average price is $43.98 and its 200-day moving average price is $50.39. The company has a market capitalization of $5.70 billion, a P/E ratio of -6.98 and a beta of 1.27.

StepStone Group (NASDAQ:STEP - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.02). StepStone Group had a positive return on equity of 37.69% and a negative net margin of 26.88%.The business had revenue of $300.60 million for the quarter, compared to analyst estimates of $309.32 million. Sell-side analysts expect that StepStone Group Inc. will post 2.54 earnings per share for the current fiscal year.

StepStone Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were issued a dividend of $0.28 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. StepStone Group's dividend payout ratio is -16.47%.

Insider Activity at StepStone Group

In related news, insider Michael I. Mccabe purchased 120,000 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average price of $41.85 per share, with a total value 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jose A. Fernandez sold 2,290 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.64, for a total value of $97,645.60. 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. Company insiders own 15.70% of the company's stock.

Hedge Funds Weigh In On StepStone Group

Several institutional investors have recently modified their holdings of the company. William Blair Investment Management LLC lifted its position in StepStone Group by 7.4% in the fourth 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 period. Rockefeller Capital Management L.P. increased its position in shares of StepStone Group by 24.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 258,448 shares of the company's stock valued at $16,585,000 after purchasing an additional 51,125 shares during the period. Hsbc Holdings PLC acquired a new position in shares of StepStone Group during the 1st quarter valued at $3,898,000. Millennium Management LLC raised its stake 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, Advent International L.P. acquired a new stake in shares of StepStone Group in the first quarter valued at $5,733,000. Institutional investors own 55.54% of the company's stock.

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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