As the U.S. markets navigate through a period of volatility, with major indices like the S&P 500 and Nasdaq closing higher amidst concerns over new tariffs, investors are closely monitoring growth opportunities in companies with strong insider ownership. In this environment, stocks that combine growth potential with significant insider investment can offer a compelling proposition, as insiders often have unique insights into their company's future prospects.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: California BanCorp operates as the bank holding company for California Bank of Commerce, N.A., with a market cap of $462.37 million.
Operations: The company generates revenue primarily through its Commercial Banking segment, which accounts for $106.05 million.
Insider Ownership: 17.3%
California BanCorp is experiencing strong growth prospects with earnings forecasted to grow significantly at 67.3% annually, outpacing the US market. Despite trading below fair value by 15.5%, recent financial results show profit margins have decreased and substantial shareholder dilution occurred last year. Recent events include delayed SEC filings and a reduction in net charge-offs compared to the previous year, highlighting operational challenges alongside growth potential.
Overview: Burke & Herbert Financial Services Corp. is the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Virginia and Maryland, with a market cap of $840.68 million.
Operations: The company generates revenue of $233.03 million from its community banking products and services in Virginia and Maryland.
Insider Ownership: 13%
Burke & Herbert Financial Services exhibits strong growth potential, with earnings projected to rise 47% annually, surpassing the US market's growth rate. Revenue is expected to grow at 20.4% per year, outpacing the market average. Recent net income and interest income figures show substantial increases year-over-year. Insider activity indicates more shares have been bought than sold recently, reflecting confidence in future performance despite past shareholder dilution and low forecasted return on equity of 14%.
Overview: Red Violet, Inc. is an analytics and information solutions company that uses proprietary technologies to provide identity intelligence in the United States, with a market cap of $523.95 million.
Operations: The company's revenue segment is primarily derived from Data Processing, totaling $75.19 million.
Insider Ownership: 15.2%
Red Violet shows promising growth prospects with earnings forecasted to grow at 22.1% annually, outpacing the US market's average. Despite a decline in profit margins from 22.5% to 9.3%, revenue increased to US$75.19 million in 2024 from US$60.2 million the previous year, indicating robust sales performance. Recent board changes, including Greg Strakosch's appointment, aim to enhance strategic leadership and shareholder value amidst minimal insider selling activity over the past quarter.
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.
