In a volatile market where major indexes have experienced declines for several consecutive weeks, investors are keenly observing growth companies that demonstrate resilience and potential. High insider ownership often signals confidence from those closest to the company, making it an appealing factor for investors seeking stability and growth in uncertain times.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $16.34 billion.
Operations: The company's revenue is primarily generated from its online brokerage and margin financing services, totaling HK$11.97 billion.
Insider Ownership: 36.6%
Revenue Growth Forecast: 17.5% p.a.
Futu Holdings demonstrates potential as a growth company with high insider ownership. The company's revenue is forecast to grow at 17.5% annually, outpacing the US market's 8.5%. Recent earnings results show substantial growth, with fourth-quarter revenue reaching HK$4.43 billion and net income at HK$1.87 billion, both significantly higher than the previous year. While not expected to achieve significant annual earnings growth, Futu's return on equity is projected to be strong in three years at 21.2%.
Overview: Atlassian Corporation, with a market cap of $57.23 billion, designs, develops, licenses, and maintains various software products worldwide through its subsidiaries.
Operations: The company's revenue primarily comes from its Software & Programming segment, which generated $4.79 billion.
Insider Ownership: 37.8%
Revenue Growth Forecast: 15.6% p.a.
Atlassian's insider ownership is complemented by recent substantial insider selling, yet the company remains a strong growth contender. Its revenue is forecast to grow at 15.6% annually, surpassing the US market average. The company reported a significant reduction in net loss for the latest quarter with revenue reaching US$1.29 billion. Analysts project Atlassian will achieve profitability within three years, and its return on equity is expected to be very high at 43.4%.
Overview: Tesla, Inc. is involved in the design, development, manufacturing, leasing, and sale of electric vehicles and energy generation and storage systems globally with a market cap of approximately $804.06 billion.
Operations: Tesla's revenue is primarily derived from its automotive segment, generating $87.60 billion, and its energy generation and storage segment, contributing $10.09 billion.
Insider Ownership: 12.9%
Revenue Growth Forecast: 15.7% p.a.
Tesla's growth trajectory is supported by high insider ownership, with insiders buying more shares than selling recently. Despite challenges such as a decline in net profit margins from 15.5% to 7.3%, Tesla's revenue and earnings are forecasted to grow faster than the US market at rates of 15.7% and 22.8% per year, respectively. Recent speculation about potential investments in Nissan was denied by CEO Elon Musk, maintaining focus on Tesla's core operations and expansion plans like the Semi truck agreement with WattEV.
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.
