StepStone Group (NASDAQ:STEP) Shares Gap Up Following Insider Buying Activity

Key Points

• StepStone Group shares gapped up after insider buying news, opening at $45.82 versus the prior close of $42.52.
• Insider Michael I. Mccabe bought 120,000 shares at an average price of $41.85, a $5.0 million purchase that increased his holdings by 38.32%.
• Analysts remain generally constructive on STEP, with a Moderate Buy consensus and a price target of $71.88, while the company also recently reported better-than-expected quarterly earnings and announced a $0.28 quarterly dividend.

StepStone Group Inc. (NASDAQ:STEP - Get Free Report)'s share price gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $42.52, but opened at $45.82. StepStone Group shares last traded at $44.1770, with a volume of 98,148 shares.

Specifically, insider Michael I. Mccabe acquired 120,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $41.85 per share, with a total value of $5,022,000.00. Following the acquisition, the insider directly owned 433,178 shares of the company's stock, valued at approximately $18,128,499.30. The trade was a 38.32% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link.

Analysts Set New Price Targets

A number of research analysts recently weighed in on STEP shares. UBS Group assumed coverage on shares of StepStone Group in a report on Thursday, April 2nd. They issued a "buy" rating and a $60.00 target price for the company. Oppenheimer decreased 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 note on Thursday, May 21st. Evercore reissued an "outperform" rating and issued a $60.00 price objective on shares of StepStone Group in a research note on Thursday, May 21st. BMO Capital Markets boosted their target price on shares of StepStone Group from $54.00 to $62.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Finally, Barclays upped their target price on shares of StepStone Group from $61.00 to $62.00 and gave the company an "overweight" rating in a research report on Thursday, May 21st. Seven investment 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. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $71.88.

StepStone Group Stock Performance

The company has a market cap of $5.29 billion, a PE ratio of -6.48 and a beta of 1.29. The company has a fifty day moving average of $50.80 and a two-hundred day moving average of $56.68.

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 for the quarter, beating analysts' consensus estimates of $0.51 by $0.06. StepStone Group had a negative net margin of 26.88% and a positive return on equity of 37.69%. The business had revenue of $305.84 million for the quarter, compared to analysts' expectations of $292.11 million. During the same quarter in the previous year, the business posted $0.68 earnings per share. The business's revenue was up 3.4% compared to the same quarter last year. On average, equities analysts forecast that StepStone Group Inc. will post 2.57 EPS for the current 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. This represents a $1.12 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, June 15th. StepStone Group's dividend payout ratio is -16.47%.

StepStone Group announced that its Board of Directors has authorized a stock repurchase program on Monday, March 9th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 1.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On StepStone Group

Several hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP boosted its stake in shares of StepStone Group by 65.2% during the third quarter. Wellington Management Group LLP now owns 5,723,073 shares of the company's stock valued at $373,774,000 after purchasing an additional 2,257,880 shares during the period. Westfield Capital Management Co. LP bought a new stake in StepStone Group during the 3rd quarter valued at about $50,859,000. Vanguard Group Inc. lifted its holdings in StepStone Group by 9.4% during the 4th quarter. Vanguard Group Inc. now owns 8,449,878 shares of the company's stock valued at $542,229,000 after buying an additional 728,410 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in StepStone Group by 16.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,102,666 shares of the company's stock valued at $327,439,000 after buying an additional 724,201 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in StepStone Group by 320.8% in the 3rd quarter. Ameriprise Financial Inc. now owns 749,841 shares of the company's stock valued at $48,972,000 after buying an additional 571,643 shares during the period. Institutional investors own 55.54% of the company's stock.

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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