The United States stock market has shown robust growth, rising 1.8% over the past week and achieving a 23% increase over the last year, with earnings projected to grow by 15% annually. In such a thriving market, stocks with high insider ownership can be particularly appealing as they often indicate that company leaders have a vested interest in the business’s success and future growth.
Top 10 Growth Companies With High Insider Ownership In The United States
|
Name |
Insider Ownership |
Earnings Growth |
|
GigaCloud Technology (NasdaqGM:GCT) |
25.9% |
21.3% |
|
PDD Holdings (NasdaqGS:PDD) |
32.1% |
23.1% |
|
Atour Lifestyle Holdings (NasdaqGS:ATAT) |
26% |
21.7% |
|
Super Micro Computer (NasdaqGS:SMCI) |
14.3% |
40.2% |
|
Bridge Investment Group Holdings (NYSE:BRDG) |
11.6% |
98.2% |
|
Celsius Holdings (NasdaqCM:CELH) |
10.4% |
21.8% |
|
Credo Technology Group Holding (NasdaqGS:CRDO) |
15.2% |
84.1% |
|
BBB Foods (NYSE:TBBB) |
18.1% |
99.4% |
|
EHang Holdings (NasdaqGM:EH) |
33% |
101.9% |
|
Carlyle Group (NasdaqGS:CG) |
29.2% |
23.6% |
Let’s take a closer look at a couple of our picks from the screened companies.
Simply Wall St Growth Rating: ★★★★★☆
Overview: LifeMD, Inc. is a telehealth company based in the United States that offers direct-to-patient medical services by connecting consumers with healthcare professionals, with a market capitalization of approximately $347.62 million.
Operations: The company generates revenue primarily through two segments: Telehealth, which brought in $108.79 million, and Worksimpli, contributing $54.77 million.
Insider Ownership: 13.1%
Earnings Growth Forecast: 126.2% p.a.
LifeMD, a company in the growth phase with significant insider ownership, is trading at 58.5% below its estimated fair value and is expected to become profitable within the next three years. Analysts predict a substantial 126.24% annual earnings growth and a revenue increase of 21.8% per year, outpacing the US market forecast of 8.4%. Despite these prospects, shareholder dilution occurred over the past year, and its share price has been highly volatile recently.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Globus Medical, Inc., a medical device company, specializes in creating healthcare solutions for musculoskeletal disorders and operates both in the United States and internationally, with a market cap of approximately $8.96 billion.
Operations: The company generates approximately $1.90 billion in revenue from its medical products segment.
Insider Ownership: 16.7%
Earnings Growth Forecast: 40.9% p.a.
Globus Medical, despite a challenging quarter with a net loss of US$7.12 million from US$49.13 million net income year-over-year, remains a key growth company due to high insider ownership. The firm recently raised its 2024 revenue forecast slightly to between US$2.46 billion and US$2.485 billion and has been actively repurchasing shares, signaling confidence from management. However, profitability concerns linger as profit margins have dipped significantly from the previous year’s levels.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Block, Inc., operating globally, develops integrated commerce and financial ecosystems, with a market capitalization of approximately $40.20 billion.
Operations: The company’s revenue is primarily generated from two segments: Square, which brought in $7.21 billion, and Cash App, contributing $15.47 billion.
Insider Ownership: 10.2%
Earnings Growth Forecast: 36.1% p.a.
Block, Inc. is poised for significant growth with earnings expected to increase by 36.1% annually, outpacing the broader US market. Despite a forecast of lower returns on equity at 11.8%, insider activity has been positive with more shares bought than sold recently, suggesting confidence from those closest to the company. Additionally, Block’s strategic movements include a $2 billion debt issuance aimed at funding general corporate activities and potential acquisitions, indicating readiness for expansive initiatives.
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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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include NasdaqGM:LFMD NYSE:GMED and NYSE:SQ.
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