The Australian stock market has seen a mixed performance recently, with the ASX200 closing up just 0.17% amid varied sector outcomes and significant individual stock movements. In this environment of cautious optimism and sector-specific volatility, identifying growth stocks with high insider ownership can be a sound strategy for investors seeking companies where management's interests are closely aligned with shareholders.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Pinnacle Investment Management Group Limited operates as an investment management company in Australia with a market cap of A$3.41 billion.
Operations: Pinnacle generates revenue primarily from its Funds Management Operations, amounting to A$48.99 million.
Insider Ownership: 31.5%
Return On Equity Forecast: 30% (2027 estimate)
Pinnacle Investment Management Group demonstrates strong growth potential, with earnings forecasted to grow at 14.4% per year, outpacing the Australian market's 12.8%. Recent results show a net income increase to A$90.35 million from A$76.47 million last year, indicating robust performance. However, insider activity reveals significant selling over the past three months despite no substantial buying. The company appointed Christina Lenard as Director and announced a dividend of A$0.264 per security for H1 2024.
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: The company's revenue segments consist of A$317.24 million from Software, A$83.83 million from Corporate, and A$68.13 million from Consulting.
Insider Ownership: 12.3%
Return On Equity Forecast: 33% (2027 estimate)
Technology One Limited showcases promising growth, with earnings forecasted to increase by 14.8% annually, surpassing the Australian market's 12.8%. Recent half-year results reported revenue of A$240.83 million and net income of A$48 million, reflecting solid performance. The appointment of Paul Robson as a Non-Executive Director is expected to bolster strategic transformation and operational efficiency in its SaaS platform expansion. Despite no substantial insider buying or selling over three months, the company remains focused on innovation and global growth initiatives.
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: Temple & Webster Group Ltd generates revenue primarily from the online sale of furniture, homewares, and home improvement products within Australia.
Insider Ownership: 12.9%
Return On Equity Forecast: 27% (2027 estimate)
Temple & Webster Group has seen a significant increase in revenue, reporting A$497.8 million for the year ended June 30, 2024, up from A$395.5 million last year. However, net income declined to A$1.8 million from A$8.3 million. The company trades at 16.7% below its estimated fair value and forecasts robust annual earnings growth of 62.2%. Recent executive changes include appointing Cameron Barnsley as CFO to enhance financial strategy and capital management efforts amidst ongoing share buyback plans.
Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
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.
