Insider Unloading: Thomas Keck Sells $4.19M Worth Of StepStone Group Shares

Revealing a significant insider sell on June 12, Thomas Keck, Director at StepStone Group STEP, as per the latest SEC filing.

What Happened: Keck opted to sell 92,965 shares of StepStone Group, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $4,192,297.

StepStone Group's shares are actively trading at $44.68, experiencing a down of 1.13% during Thursday's morning session.

About StepStone Group

StepStone Group Inc operates as a fully integrated private markets solution provider. The company provides customized investment solutions and advisory and data services. It provides investment solutions in the areas of private equity, real estate, private debt, and infrastructure and real assets. The company consists of a single operating segment and a single reportable segment for accounting and financial reporting purposes.

StepStone Group: Financial Performance Dissected

Revenue Growth: Over the 3 months period, StepStone Group showcased positive performance, achieving a revenue growth rate of 107.0% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 43.68%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): StepStone Group's EPS reflects a decline, falling below the industry average with a current EPS of 0.48.

Debt Management: StepStone Group's debt-to-equity ratio stands notably higher than the industry average, reaching 0.83. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Market Valuation:

• Price to Earnings (P/E) Ratio: StepStone Group's current Price to Earnings (P/E) ratio of 49.66 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 4.23 is lower than the industry average, implying a discounted valuation for StepStone Group's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): StepStone Group's EV/EBITDA ratio stands at 12.1, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of StepStone Group's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.