We wouldn't blame StepStone Group Inc. (NASDAQ:STEP) shareholders if they were a little worried about the fact that Scott Hart, the CEO, Head of Private Equity recently netted about US$3.8m selling shares at an average price of US$62.97. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.
StepStone Group Insider Transactions Over The Last Year
The insider, Charles Newhall, made the biggest insider sale in the last 12 months. That single transaction was for US$24m worth of shares at a price of US$36.00 each. That means that an insider was selling shares at slightly below the current price (US$60.21). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 16% of Charles Newhall's stake.
All up, insiders sold more shares in StepStone Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does StepStone Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that StepStone Group insiders own 4.7% of the company, worth about US$343m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At StepStone Group Tell Us?
Insiders sold StepStone Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with StepStone Group (including 2 which are potentially serious).
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
