The ASX has been trading up 0.7% at 7880 points, buoyed by a strong performance in the Information Technology sector and positive economic data from the US. As the Australian reporting season unfolds, investors are keenly observing companies with robust revenue growth and high insider ownership, which can often signal confidence in future prospects. In this article, we will explore three ASX-listed growth companies that exemplify these characteristics, each demonstrating impressive revenue growth of 17%.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Pinnacle Investment Management Group Limited is an Australian investment management company with a market cap of A$3.41 billion.
Operations: Pinnacle Investment Management Group Limited generates revenue primarily from its Funds Management Operations, amounting to A$48.99 million.
Insider Ownership: 31.5%
Revenue Growth Forecast: 13.7% p.a.
Pinnacle Investment Management Group has demonstrated solid growth, with earnings rising to A$90.35 million from A$76.47 million last year and revenue increasing to A$48.99 million. Analysts forecast annual profit growth of 14.4%, outpacing the broader Australian market's 12.8%. Recent insider activity includes the appointment of Christina Lenard as Director and a modest share buyback program, indicating confidence in future prospects despite limited substantial insider buying over the past three months.
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$7.06 billion.
Operations: Revenue segments (in millions of A$): Software: 317.24, Corporate: 83.83, Consulting: 68.13
Insider Ownership: 12.3%
Revenue Growth Forecast: 11.5% p.a.
Technology One's earnings are forecast to grow at 14.8% annually, surpassing the Australian market's 12.8%. Revenue is also expected to outpace the market, growing at 11.5% per year. Recent events include the appointment of Paul Robson as an independent Non-Executive Director, bringing significant SaaS expertise. For H1 2024, revenue rose to A$240.83 million from A$201.01 million a year ago, with net income increasing to A$48 million from A$41.28 million.
Overview: Temple & Webster Group Ltd (ASX:TPW) operates as an online retailer of furniture, homewares, and home improvement products in Australia with a market cap of A$1.39 billion.
Operations: The company's revenue segments include online sales of furniture, homewares, and home improvement products in Australia.
Insider Ownership: 12.9%
Revenue Growth Forecast: 17.7% p.a.
Temple & Webster Group's revenue is forecast to grow at 17.7% annually, outpacing the Australian market. Although net income dropped to A$1.8 million from A$8.3 million, earnings are expected to grow significantly at 62.2% per year over the next three years, with a high forecasted return on equity of 27%. Recent developments include appointing Cameron Barnsley as CFO and authorizing a share buyback program for up to A$30 million, reflecting strong insider confidence in the company's growth strategy.
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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 ASX:PNI ASX:TNE and ASX:TPW.
