5 Best Undervalued Small-Cap Stocks According to Hedge Funds

3. StepStone Group Inc. (NASDAQ:STEP)

Number of Hedge Fund Holders: 19  

PE Ratio: 5.61

StepStone Group Inc. (NASDAQ:STEP) is a New York-based investment firm. On February 8, the firm posted earnings for the third fiscal quarter, reporting earnings per share of $0.83 and a revenue of more than $410 million, up 66% year-on-year and beating analyst expectations by $263 million. It also declared a quarterly dividend of $0.15 per share, in line with previous. The forward yield was 1.75%. 

In late 2021, Evercore ISI analyst John Dunn had initiated coverage of StepStone Group Inc. (NASDAQ:STEP) stock with an Outperform rating and a price target of $48, highlighting that the firm was “well-positioned in the secularly-growing private markets space” given that it had a “more diverse, global and growing business” in relation to competitors. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in StepStone Group Inc. (NASDAQ:STEP) with 1 million shares worth more than $43 million. 

At the end of the fourth quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $113 million in StepStone Group Inc. (NASDAQ:STEP), compared to 13 in the previous quarter worth $60 million.