On September 13, 2023, James Lim, a 10% owner of StepStone Group Inc (STEP, Financial), sold 129,088 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 710,192 shares over the past year and has not made any purchases.
James Lim is a significant figure within StepStone Group Inc, 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, StepStone prides itself on its disciplined approach and highly experienced team.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 12 insider sells and only 2 insider buys. This could potentially signal a lack of confidence in the company's current valuation or future prospects.
On the day of the insider's recent sell, shares of StepStone Group Inc were trading at $31.64, giving the company a market cap of $1.935 billion. This is significantly higher than the company's GuruFocus Value of $7.58, indicating that the stock is significantly overvalued.
The company's price-earnings ratio stands at 146.67, which is higher than both the industry median of 13.11 and the company's historical median price-earnings ratio. This further supports the notion that the stock is currently overvalued.
The GF Value, an intrinsic value estimate developed by GuruFocus, is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance. With a price-to-GF-Value ratio of 4.17, StepStone Group Inc's stock is significantly overvalued according to this measure.
In conclusion, the insider's recent sell-off, coupled with the company's high valuation metrics, could be a signal for investors to exercise caution. As always, it's important to conduct thorough research and consider multiple factors before making investment decisions.
