StepStone Group (NASDAQ:STEP) Shares Gap Down Following Insider Selling

StepStone Group Inc. (NASDAQ:STEP) gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $46.07, but opened at $42.64. StepStone Group shares last traded at $42.81, with a volume of 474,484 shares.

Specifically, COO Jose A. Fernandez sold 2,290 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.64, for a total transaction of $97,645.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jose A. Fernandez sold 100,000 shares of the firm’s stock in a transaction dated 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 transaction, the chief operating officer owned 102,290 shares of the company’s stock, valued at $4,971,294. This trade represents a 49.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on STEP. UBS Group began coverage on StepStone Group in a report on Thursday, April 2nd. They set a “buy” rating and a $60.00 target price for the company. Evercore reiterated an “outperform” rating and issued a $60.00 price objective on shares of StepStone Group in a research note on Thursday, May 21st. Oppenheimer decreased their price objective on StepStone Group from $90.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday, May 21st. JPMorgan Chase & Co. lifted their price objective on StepStone Group from $84.00 to $91.00 and gave the company an “overweight” rating in a research note on Friday, February 6th. Finally, Zacks Research cut StepStone Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 10th. Seven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $71.88.

StepStone Group Trading Up 6.3%

The firm has a 50 day moving average price of $51.17 and a 200-day moving average price of $57.28. The firm has a market cap of $5.53 billion, a PE ratio of -6.82 and a beta of 1.29.

StepStone Group (NASDAQ:STEP) last issued its earnings results on Wednesday, May 20th. The company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.06. StepStone Group had a positive return on equity of 37.69% and a negative net margin of 26.88%.The business had revenue of $305.84 million for the quarter, compared to analyst estimates of $292.11 million. During the same quarter last year, the company earned $0.68 EPS. The business’s quarterly revenue was up 3.4% on a year-over-year basis. Equities analysts forecast that StepStone Group Inc. will post 2.57 earnings per share for the current fiscal year.

StepStone Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, June 15th. StepStone Group’s dividend payout ratio (DPR) 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 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 programs are generally a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On StepStone Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Salomon & Ludwin LLC raised its position in shares of 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 in the last quarter. Aster Capital Management DIFC Ltd raised its position in shares of StepStone Group by 2,285.7% during the 3rd quarter. Aster Capital Management DIFC Ltd now owns 501 shares of the company’s stock worth $33,000 after acquiring an additional 480 shares in the last quarter. Essential Partners LLC raised its position in shares of StepStone Group by 17,350.0% during the 1st quarter. Essential Partners LLC now owns 698 shares of the company’s stock worth $33,000 after acquiring an additional 694 shares in the last quarter. Quarry LP raised its position in shares of StepStone Group by 155.7% during the 3rd quarter. Quarry LP now owns 514 shares of the company’s stock worth $34,000 after acquiring an additional 313 shares in the last quarter. Finally, Fifth Third Bancorp raised its position in shares of StepStone Group by 58.6% during the 4th quarter. Fifth Third Bancorp now owns 544 shares of the company’s stock worth $35,000 after acquiring an additional 201 shares in the last quarter. Institutional investors and hedge funds 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.