StepStone (STEP) | News Based Sentiment Analysis

• On September 7, 2025, StepStone Group reported Q1 FY26 earnings of $0.40 per share, missing the consensus estimate of $0.42 by $0.02, and revenue of $237.47 million, slightly below the $238.99 million expected. Despite this miss, revenue still showed a significant 95.4% year-over-year increase, demonstrating strong underlying growth in the business.
• Following the earnings report, StepStone demonstrated commitment to shareholders by increasing its quarterly dividend to $0.28 per share, payable on September 15th to those of record on August 29th, 2025. This represents an increase from $0.24, resulting in an annualized dividend of $1.12, or a 1.8% yield.
• StepStone Group and Kroll launched the Kroll StepStone Private Credit Benchmarks on September 8, 2025, leveraging data from over 15,000 deals. This partnership utilizes StepStone’s substantial capital base – approximately $723 billion in total capital and $199 billion in assets under management as of June 30, 2025 – to provide valuable market insights.
• Millennium Management LLC significantly increased its stake in StepStone Group by 269.8% during Q1, owning approximately 2.55% of the company, valued at $154.7 million as of September 7, 2025. This substantial increase signals strong institutional confidence in StepStone’s long-term prospects, despite the recent earnings miss.
• Insider selling activity was observed, with Michael I. McCabe, Head of Strategy, selling $18,874,792 worth of shares over the past six months (as of September 8, 2025), and CEO Scott W. Hart also engaging in sales. While not necessarily negative, this warrants monitoring as it could indicate a shift in insider sentiment.
• As of September 11, 2025, StepStone Group maintained a "Buy" consensus rating from 8 analysts, with an average price target of $61.25. Recent price targets ranged from $61.0 (Evercore ISI Group, July 10, 2025) to $84.0 (Oppenheimer, August 11, 2025), indicating varied, but generally optimistic, expectations.
• Institutional investor activity in Q2 2025 showed mixed signals, with 141 increasing positions and 144 decreasing them. Millennium Management added 1,435,100 shares (+48.4%), valued at $79,648,050, while FMR LLC removed 1,369,176 shares (-36.0%), estimated at $75,989,268.

The Investment Story: September was a month of contrasts for StepStone Group, with a slight earnings miss tempered by a dividend increase and significant institutional investment. The launch of new benchmarks and continued positive analyst sentiment provide a generally optimistic outlook, though insider selling adds a note of caution.

What It Means for Investors: The earnings miss may create short-term volatility, but the strong revenue growth and dividend increase suggest underlying strength. Increased institutional ownership and the new benchmark partnership are positive long-term indicators. Investors should monitor insider activity and the upcoming Barclays presentation for further clarity.

Looking Ahead: Investors should pay close attention to the September 9, 2025, presentation at the Barclays Global Financial Services Conference, where CEO Scott Hart and Head of Strategy Mike McCabe will share their outlook. Monitoring insider trading activity will also be important.

The Bottom Line: StepStone Group remains a compelling investment opportunity, particularly for those seeking exposure to the private credit market. While the recent earnings miss and insider selling warrant attention, the company’s strong growth, dividend policy, and positive analyst sentiment suggest continued potential.