As the U.S. market grapples with heightened inflation concerns and wavering consumer sentiment, major indices like the Dow Jones, S&P 500, and Nasdaq have experienced notable declines. Amid these turbulent times, investors often seek solace in growth companies where insider ownership is high, as this can signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: A2Z Cust2Mate Solutions Corp. is a technology company that develops and commercializes retail smart cart solutions for grocery stores and supermarkets in Israel and internationally, with a market cap of $257.77 million.
Operations: The company's revenue is primarily derived from Precision Metal Parts at $4.34 million, followed by Services at $1.60 million and Smart Carts at $0.29 million.
Insider Ownership: 13.1%
A2Z Cust2Mate Solutions shows potential as a growth company with high insider ownership, despite recent shareholder dilution from a $21 million follow-on equity offering. The company's revenue is expected to grow significantly at 121.4% annually, outpacing the US market. Although it currently has negative shareholders' equity, A2Z is forecasted to achieve profitability within three years, indicating strong future prospects. The lock-up period ending on March 28 may influence short-term trading dynamics.
Overview: Dingdong (Cayman) Limited is an e-commerce company operating in China with a market cap of approximately $617.19 million.
Operations: The company's revenue is primarily derived from its online retail segment, which amounts to CN¥22.15 billion.
Insider Ownership: 28.2%
Dingdong (Cayman) Limited demonstrates potential with its recent transition to profitability, reporting a net income of CNY 89.18 million for Q4 2024, compared to a net loss the previous year. The company announced a share repurchase program worth $20 million, reflecting confidence in its valuation. Despite slower revenue growth at 10.4% annually compared to the desired threshold, earnings are expected to grow significantly at 39.1% per year, outpacing the US market average.
Overview: Live Oak Bancshares, Inc. is a bank holding company for Live Oak Banking Company, offering diverse banking products and services in the United States with a market cap of approximately $1.24 billion.
Operations: The company's revenue is primarily derived from its banking platform for small businesses, contributing $402.94 million.
Insider Ownership: 23.5%
Live Oak Bancshares shows potential for growth with forecasted earnings and revenue expected to increase significantly at 36% and 24.6% per year, respectively, surpassing US market averages. However, the company faces challenges with a high level of bad loans at 3.6% and a low allowance for these loans at 45%. Recent events include delayed SEC filings and board changes, but no substantial insider trading activity has been reported in the past three months.
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.
