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

by · The Markets Daily

StepStone Group Inc. (NASDAQ:STEP – Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $42.81, but opened at $50.58. StepStone Group shares last traded at $46.3050, with a volume of 141,530 shares changing hands.

The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.11. The company had revenue of $362.71 million for the quarter, compared to analyst estimates of $324.84 million. StepStone Group had a negative net margin of 30.53% and a positive return on equity of 43.38%.

StepStone Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 2.8%. The ex-dividend date is Monday, November 30th. StepStone Group’s dividend payout ratio (DPR) is -17.10%.

Trending Headlines about StepStone Group

Here are the key news stories impacting StepStone Group this week:

  • Positive Sentiment: StepStone reported earnings of $0.66 per share, above estimates of roughly $0.55–$0.57 and up from $0.54 a year earlier. Revenue was also reported above the $324.8 million consensus estimate; coverage cited differing revenue figures, including $362.7 million and $773.1 million. The earnings beat and growth are the clearest positive catalysts. StepStone Q2 earnings and revenue
  • Positive Sentiment: The company declared a quarterly dividend of $0.33 per share, equivalent to $1.32 annually and a reported 2.9% yield. The payment is scheduled for December 15 to holders of record November 30. StepStone dividend and earnings details
  • Negative Sentiment: Despite the earnings beat, reported net margin was negative 30.53%, a profitability measure that could temper enthusiasm about the quarter. StepStone quarterly earnings details

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on STEP shares. Weiss Ratings reissued a “sell (d-)” rating on shares of StepStone Group in a research report on Friday, October 16th. Evercore reaffirmed an “outperform” rating and issued a $56.00 price objective on shares of StepStone Group in a research report on Friday, August 7th. Royal Bank Of Canada began coverage on StepStone Group in a research report on Wednesday, September 9th. They issued an “outperform” rating and a $65.00 price objective for the company. BMO Capital Markets reduced their target price on StepStone Group from $58.00 to $48.00 and set an “outperform” rating for the company in a research note on Tuesday, October 27th. Finally, Barclays boosted their target price on StepStone Group from $60.00 to $62.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued 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 target price of $66.11.

View Our Latest Stock Analysis on StepStone Group

Institutional Investors Weigh In On StepStone Group

A number of institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC acquired a new position in shares of StepStone Group in the first quarter valued at approximately $3,898,000. Tidal Investments LLC increased its stake in shares of StepStone Group by 11.8% during the second quarter. Tidal Investments LLC now owns 314,523 shares of the company’s stock worth $13,009,000 after purchasing an additional 33,210 shares during the period. Advent International L.P. acquired a new stake in StepStone Group during the 1st quarter worth approximately $5,733,000. Engle Capital Management L.P. lifted its holdings in StepStone Group by 82.5% during the 1st quarter. Engle Capital Management L.P. now owns 237,216 shares of the company’s stock worth $11,320,000 after purchasing an additional 107,216 shares during the last quarter. Finally, Lazard Asset Management LLC lifted its holdings in StepStone Group by 95.6% during the 1st quarter. Lazard Asset Management LLC now owns 332,328 shares of the company’s stock worth $15,859,000 after purchasing an additional 162,467 shares during the last quarter. Institutional investors own 55.54% of the company’s stock.

StepStone Group Price Performance

The company has a 50 day moving average of $45.68 and a 200-day moving average of $49.03. The firm has a market capitalization of $5.63 billion, a P/E ratio of -6.12 and a beta of 1.28. The company has a current ratio of 0.19, a quick ratio of 0.19 and a debt-to-equity ratio of 1.22.

StepStone Group Company Profile

(Get Free Report)

StepStone Group, Inc is a global investment firm focused on private markets. The company provides investment solutions and advisory services to institutional investors, family offices, and other clients seeking exposure to privately held and alternative assets.

Its activities include investments in private equity, venture capital, private debt, infrastructure, and real estate. StepStone builds customized portfolios through primary investments in funds, secondary-market transactions, and direct investments in companies and assets.

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