StepStone Group (NASDAQ:STEP) Shares Gap Up After Better-Than-Expected Earnings

StepStone Group Inc. (NASDAQ:STEP)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $52.00, but opened at $54.85. StepStone Group shares last traded at $54.8640, with a volume of 192,328 shares changing hands.

The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.51 by $0.06. The firm had revenue of $305.84 million during the quarter, compared to the consensus estimate of $292.11 million. StepStone Group had a negative net margin of 30.66% and a positive return on equity of 31.44%. The business’s quarterly revenue was up 3.4% compared to the same quarter last year. During the same period last year, the firm earned $0.68 EPS.

StepStone Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors 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 yield of 2.0%. The ex-dividend date is Monday, June 15th. StepStone Group’s payout ratio is presently -16.14%.

StepStone Group declared that its Board of Directors has approved a stock buyback program on Monday, March 9th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to reacquire up to 1.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on STEP shares. Oppenheimer set a $85.00 target price on shares of StepStone Group in a research report on Thursday. Barclays restated an “overweight” rating on shares of StepStone Group in a research report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of StepStone Group from $84.00 to $91.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Evercore reissued an “outperform” rating on shares of StepStone Group in a research note on Thursday. Finally, UBS Group began coverage on StepStone Group in a research report on Thursday, April 2nd. They set a “buy” rating and a $60.00 price target on the stock. Seven equities 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.com, StepStone Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $71.13.

Institutional Investors Weigh In On StepStone Group

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

StepStone Group Trading Up 5.2%

The firm has a fifty day moving average of $50.30 and a two-hundred day moving average of $58.20. The company has a market capitalization of $6.52 billion, a PE ratio of -7.90 and a beta of 1.34.

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.