As the Australian market grapples with mixed signals from global economic developments and local reporting season results, investors are keenly observing the ASX 200's performance amidst a backdrop of fluctuating commodity prices and geopolitical tensions. In such an environment, growth companies with high insider ownership can be particularly appealing as they often signal strong confidence in future prospects by those who know the business best.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Corporate Travel Management Limited is a travel management solutions company that oversees the procurement and delivery of travel services across Australia and New Zealand, North America, Asia, and Europe, with a market cap of A$23.47 billion.
Operations: The company generates revenue through its management of travel services in multiple regions, including Australia and New Zealand, North America, Asia, and Europe.
Insider Ownership: 13.6%
Earnings Growth Forecast: 21% p.a.
Corporate Travel Management is expected to achieve significant annual earnings growth of 21% over the next three years, outpacing the Australian market's 11.4%. However, its revenue growth forecast of 7.5% per year remains below the high-growth threshold but above market average. Despite trading at a discount to estimated fair value, recent earnings show declines in sales and net income compared to last year. Insider ownership remains stable with no substantial insider trading activity reported recently.
Overview: Pinnacle Investment Management Group Limited is an Australian investment management company with a market cap of A$5.62 billion.
Operations: The company generates revenue primarily from its Funds Management Operations, amounting to A$52.95 million.
Insider Ownership: 28.4%
Earnings Growth Forecast: 12.2% p.a.
Pinnacle Investment Management Group demonstrates strong growth potential with forecasted revenue growth of 14.8% annually, surpassing the Australian market average. Its recent earnings report shows a substantial increase in net income to A$75.71 million from A$30.2 million year-on-year, indicating robust performance despite non-cash earnings influences. The company has initiated a share buyback program and maintains high insider ownership, although no significant insider trading activity has been reported recently.
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$10.49 billion.
Operations: The company's revenue segments consist of Software (A$347.35 million), Corporate (A$87.02 million), and Consulting (A$72.17 million).
Insider Ownership: 10.4%
Earnings Growth Forecast: 16.1% p.a.
Technology One is positioned for growth with earnings forecasted to increase by 16.1% annually, outpacing the Australian market's average. Revenue is also expected to rise by 12.4% each year, though not at a significant rate. Despite trading below fair value estimates, insider activity has been mixed with substantial buying outweighing selling in recent months. Recent shareholder approval of constitutional changes at the AGM may influence future governance and strategic direction.
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:CTD ASX:PNI and ASX:TNE.
