StepStone Group (NASDAQ:STEP) Sees Large Volume Increase Following Dividend Announcement

Shares of StepStone Group Inc. (NASDAQ:STEP) saw unusually-strong trading volume on Friday following a dividend announcement from the company. 2,720,186 shares changed hands during mid-day trading, an increase of 114% from the previous session’s volume of 1,268,895 shares.The stock last traded at $47.7190 and had previously closed at $50.33.

The newly announced dividend which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, August 31st. This is a positive change from StepStone Group’s previous quarterly dividend of $0.28. StepStone Group’s dividend payout ratio (DPR) is presently -16.47%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on STEP shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of StepStone Group in a report on Monday, July 20th. Evercore restated an “outperform” rating and set a $56.00 price objective on shares of StepStone Group in a research note on Friday. Barclays increased their target price on StepStone Group from $60.00 to $62.00 and gave the company an “overweight” rating in a research note on Friday. UBS Group reiterated a “buy” rating and set a $69.00 target price on shares of StepStone Group in a report on Friday. Finally, BMO Capital Markets reissued an “outperform” rating and set a $58.00 price target on shares of StepStone Group in a research report on Friday. Seven investment 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, the stock presently has an average rating of “Moderate Buy” and an average price target of $70.88.

StepStone Group Trading Down 7.8%

The business has a 50 day simple moving average of $43.92 and a two-hundred day simple moving average of $50.37. The stock has a market cap of $5.54 billion, a price-to-earnings ratio of -6.01 and a beta of 1.27.

StepStone Group (NASDAQ:STEP) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.02). StepStone Group had a positive return on equity of 52.55% and a negative net margin of 30.53%.The business had revenue of $300.60 million for the quarter, compared to analysts’ expectations of $309.32 million. Research analysts anticipate that StepStone Group Inc. will post 2.54 EPS for the current fiscal year.

Key Stories Impacting StepStone Group

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

• Positive Sentiment: StepStone increased its quarterly dividend by 17.9% to $0.33 per share, implying an annualized yield of approximately 2.8%. The dividend is payable September 15 to shareholders of record August 31. StepStone Group Reports First Quarter Fiscal Year 2027 Results
• Positive Sentiment: A separate earnings analysis highlighted sales growth that exceeded estimates for the reported period, providing a constructive sign for the firm’s operating momentum. StepStone Group sales report
• Neutral Sentiment: Management’s first-quarter fiscal 2027 earnings call provided additional commentary on results and business conditions, but the available report does not specify new guidance or major strategic changes. StepStone Group Q1 2027 Earnings Call Transcript
• Negative Sentiment: StepStone reported quarterly EPS of $0.48, below consensus estimates of roughly $0.50–$0.51, although earnings improved from $0.40 a year earlier. Revenue of $300.6 million also fell short of the approximately $309.3 million consensus estimate. The dual miss likely drove the negative reaction. StepStone Group misses Q1 earnings and revenue estimates

Insiders Place Their Bets

In related news, insider Michael I. Mccabe acquired 120,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was bought 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 in the company, valued at approximately $18,128,499.30. The trade was a 38.32% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jose A. Fernandez sold 2,290 shares of the business’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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.70% of the stock is currently owned by insiders.

Institutional Trading of StepStone Group

Institutional investors and hedge funds have recently bought and sold shares of the company. Oregon Public Employees Retirement Fund grew its position in shares of StepStone Group by 1.2% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 16,895 shares of the company’s stock worth $806,000 after acquiring an additional 200 shares in the last quarter. 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 valued at $35,000 after acquiring an additional 201 shares in the last quarter. 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 valued at $28,000 after acquiring an additional 212 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in StepStone Group by 1.2% during the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 18,234 shares of the company’s stock worth $870,000 after purchasing an additional 213 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in StepStone Group by 4.5% during the fourth quarter. PNC Financial Services Group Inc. now owns 6,899 shares of the company’s stock worth $443,000 after purchasing an additional 297 shares during the last quarter. Institutional investors and hedge funds own 55.54% of the company’s stock.

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.