On September 13, 2023, David Park, the Chief Accounting Officer of StepStone Group Inc (STEP, Financial), sold 1,459 shares of the company. This move is part of a broader trend of insider selling at StepStone Group Inc, which we will explore in this article.
David Park is a seasoned financial professional with extensive experience in the financial sector. As the Chief Accounting Officer of StepStone Group Inc, he plays a crucial role in the company's financial operations and strategic planning. His insider trades provide valuable insights into the company's financial health and future prospects.
StepStone Group Inc is a global private markets firm providing customized investment and advisory solutions to some of the most sophisticated investors in the world. With a diverse range of strategies across private equity, infrastructure, private debt, and real estate, the company manages and advises on over $300 billion of assets.
Over the past year, David Park has sold a total of 6,859 shares and has not made any purchases. This trend aligns with the broader insider transaction history of StepStone Group Inc, which shows 2 insider buys and 13 insider sells over the past year.
The insider's selling activities often signal their perspective on the company's future performance. In this case, the consistent selling by the insider may suggest a cautious outlook.
On the day of the insider's recent sell, shares of StepStone Group Inc were trading at $32.02, giving the company a market cap of $2.007 billion. The price-earnings ratio stands at a high 152.17, significantly above the industry median of 13.12 and the company's historical median. This suggests that the stock is currently overvalued.
The GF Value, an intrinsic value estimate developed by GuruFocus, further supports this assessment. With a price of $32.02 and a GuruFocus Value of $7.46, StepStone Group Inc has a price-to-GF-Value ratio of 4.29, indicating that the stock is significantly overvalued.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by David Park, along with the high price-earnings ratio and GF Value, suggest that StepStone Group Inc's stock may currently be overvalued. Investors should exercise caution and conduct thorough research before making investment decisions.
