StepStone Group (NASDAQ:STEP) Stock Price Up 6.9% – Should You Buy?

StepStone Group Inc. (NASDAQ:STEP) shares shot up 6.9% during mid-day trading on Wednesday . The stock traded as high as $46.50 and last traded at $46.4220. 193,770 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 1,251,318 shares. The stock had previously closed at $43.42.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on STEP shares. Oppenheimer decreased their price objective on shares of StepStone Group from $90.00 to $85.00 and set an “outperform” rating for the company in a report on Thursday, May 21st. BMO Capital Markets cut their target price on shares of StepStone Group from $62.00 to $50.00 and set an “outperform” rating on the stock in a research note on Monday. Barclays reduced their price target on shares of StepStone Group from $62.00 to $60.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. Evercore reissued an “outperform” rating and issued a $60.00 price objective on shares of StepStone Group in a report on Thursday, May 21st. Finally, Weiss Ratings cut StepStone Group from a “sell (d)” rating to a “sell (d-)” rating in a research note on Wednesday, April 22nd. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, StepStone Group presently has an average rating of “Moderate Buy” and an average price target of $70.12.

StepStone Group Stock Up 3.7%

The firm’s 50 day simple moving average is $47.13 and its two-hundred day simple moving average is $53.38. The stock has a market cap of $5.37 billion, a P/E ratio of -6.64 and a beta of 1.31.

StepStone Group (NASDAQ:STEP) last posted its quarterly earnings results on Wednesday, May 20th. The company reported $0.57 earnings per share (EPS) for the quarter, topping 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 company had revenue of $305.84 million for the quarter, compared to the consensus estimate of $292.11 million. During the same period last year, the firm posted $0.68 EPS. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. As a group, equities analysts predict that StepStone Group Inc. will post 2.57 EPS for the current year.

StepStone Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.28 per share. The ex-dividend date was Monday, June 15th. This represents a $1.12 annualized dividend and a yield of 2.5%. StepStone Group’s dividend payout ratio is -16.47%.

Insider Transactions at StepStone Group

In related news, insider Michael I. Mccabe purchased 120,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $41.85 per share, for a total transaction of $5,022,000.00. Following the transaction, the insider owned 433,178 shares of the company’s stock, valued at $18,128,499.30. This trade represents a 38.32% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jose A. Fernandez sold 100,000 shares of the firm’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 value of $4,860,000.00. Following the completion of the sale, the chief operating officer directly owned 102,290 shares in the company, valued at approximately $4,971,294. This trade represents a 49.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.47% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in STEP. Salomon & Ludwin LLC boosted its holdings in shares of StepStone Group by 105.0% during the fourth quarter. Salomon & Ludwin LLC now owns 414 shares of the company’s stock valued at $28,000 after acquiring an additional 212 shares during the period. Quarry LP lifted its position in StepStone Group by 155.7% in the 3rd quarter. Quarry LP now owns 514 shares of the company’s stock valued at $34,000 after purchasing an additional 313 shares during the last quarter. Fifth Third Bancorp lifted its position in StepStone Group by 58.6% in the 4th 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 last quarter. Essential Partners LLC boosted its stake in StepStone Group by 17,350.0% during the 1st quarter. Essential Partners LLC now owns 698 shares of the company’s stock valued at $33,000 after purchasing an additional 694 shares during the period. Finally, Spire Wealth Management grew its position in StepStone Group by 60.0% in the 4th quarter. Spire Wealth Management now owns 800 shares of the company’s stock worth $51,000 after purchasing an additional 300 shares during the last quarter. 55.54% of the stock is currently owned by 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.