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Why StepStone Group (STEP) Stock Is Trading Up Today

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

STEP Cover Image

What Happened?

Shares of private markets investment firm StepStone Group (NASDAQ: STEP) jumped 7.8% in the morning session after Goldman Sachs upgraded the stock to Buy from Neutral and raised its price target, citing a strong growth outlook. 

The investment bank boosted its price target on the shares to $83 from a previous $64. Analysts at the firm highlighted StepStone as one of the fastest-growing alternative asset managers, projecting a robust 24% compound annual growth rate for its fee-related earnings through 2028. A key driver for this optimism was the company's flourishing Private Wealth business, which was seen as a significant engine for future growth.

Is now the time to buy StepStone Group? Access our full analysis report here, it’s free.

What Is The Market Telling Us

StepStone Group’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 16 days ago when the stock dropped 2% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. 

Instead, the move appears linked to a wider sell-off on Wall Street, which saw major indices like the S&P 500 and Nasdaq Composite fall significantly. Market sentiment soured as the 10-year Treasury yield climbed, making bonds more attractive to investors and putting downward pressure on stock valuations. 

Adding to the anxiety was a court ruling that deemed certain tariffs illegal, creating uncertainty even though they remain in place pending appeal. In this risk-off environment, many stocks declined regardless of their individual fundamentals, and StepStone Group was likely caught in the market-wide retreat.

StepStone Group is up 11.1% since the beginning of the year, and at $65.22 per share, it is trading close to its 52-week high of $69.32 from November 2024. Investors who bought $1,000 worth of StepStone Group’s shares 5 years ago would now be looking at an investment worth $2,609.

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