StepStone Group (STEP) Gets Approval for $100M Buyback Program

Stepstone Group Inc. (NASDAQ:STEP) is one of the 10 best financial stocks with highest upside potential.

On March 10, Stepstone Group Inc. disclosed that the board had approved a program for repurchasing up to $100 million worth of the company’s Class A common stock. The company’s Head of Strategy, Mike McCabe, reflected on its capital-efficient business model, which generates substantial free cash flow to support consistent quarterly dividend growth. McCabe stated:

“In addition to our normal quarterly dividend, we intend to balance paying a recurring annual supplemental dividend with retaining flexibility to adjust that supplemental payout as we evaluate the most compelling uses of capital. The authorization of a share repurchase program adds another attractive and opportunistic lever to our capital-allocation framework.”

On March 2, Barclays upgraded Stepstone Group Inc. to Overweight from an Equal Weight rating. The firm lowered its price target on the shares to $55 from $67. The firm noted that StepStone has relatively less exposure to potential AI-related threats for portfolio companies. It believes the stock’s selloff since late January has created a more attractive entry point for investors.

Stepstone Group Inc. is a private equity and venture capital firm specializing in primary, secondary, and co-investments. They support mature and middle-market companies across a wide range of sectors, from technology and healthcare to infrastructure and clean energy. The firm provides flexible capital solutions, including minority and majority ownership stakes.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Follow Insider Monkey on Google News.