StepStone Group Partner Michael McCabe Sells 32% Of Holding

We wouldn't blame StepStone Group Inc. (NASDAQ:STEP) shareholders if they were a little worried about the fact that Michael McCabe, the Partner recently netted about US$13m selling shares at an average price of US$66.18. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

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StepStone Group Insider Transactions Over The Last Year

In fact, the recent sale by Partner Michael McCabe was not their only sale of StepStone Group shares this year. They previously made an even bigger sale of -US$15m worth of shares at a price of US$60.46 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$64.40. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 27% of Michael McCabe's holding.

Insiders in StepStone Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for StepStone Group

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does StepStone Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that StepStone Group insiders own 4.8% of the company, worth about US$367m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At StepStone Group Tell Us?

An insider hasn't bought StepStone Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing StepStone Group. To help with this, we've discovered 3 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in StepStone Group.

Of course StepStone Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.