As the U.S. stock market shows signs of stabilizing with the S&P 500 and Nasdaq attempting to break their recent losing streaks, investors are keenly observing companies that demonstrate resilience and potential for growth amid economic uncertainties. In this environment, stocks with high insider ownership often attract attention, as they suggest a strong alignment between company leadership and shareholder interests, potentially indicating confidence in future performance.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: H World Group Limited operates leased and owned, manachised, and franchised hotels in the People’s Republic of China with a market cap of approximately $11.92 billion.
Operations: The company's revenue segments include leased and owned hotels, manachised hotels, and franchised hotels in the People’s Republic of China.
Insider Ownership: 31.4%
Earnings Growth Forecast: 21.1% p.a.
H World Group shows potential as a growth company with high insider ownership, despite recent challenges. The company's net income declined to CNY 49 million in Q4 2024 from CNY 743 million a year ago, yet it continues expanding its hotel network significantly. Revenue for the full year increased to CNY 23.89 billion, supported by strong manachised and franchised operations. Earnings are expected to grow significantly at an annual rate of 21.1%, outpacing the US market average.
Overview: Krystal Biotech, Inc. is a commercial-stage biotechnology company focused on discovering, developing, manufacturing, and commercializing genetic medicines for diseases with high unmet medical needs in the United States, with a market cap of approximately $5.45 billion.
Operations: Krystal Biotech generates revenue primarily from its business of developing and commercializing pharmaceuticals, amounting to $290.52 million.
Insider Ownership: 10.4%
Earnings Growth Forecast: 31.8% p.a.
Krystal Biotech demonstrates strong growth potential, with earnings expected to increase by 31.8% annually, surpassing the US market average. Recent Q4 2024 results showed net income rising to US$45.48 million from US$8.69 million a year ago, despite large one-off items impacting financials. The company received positive EMA recommendations for its VYJUVEK® product, enhancing its market position in Europe and supporting revenue growth forecasts of 25.7% annually over the next three years.
Overview: RH, along with its subsidiaries, operates as a retailer in the home furnishings market and has a market cap of approximately $4.28 billion.
Operations: The company's revenue is primarily derived from its Restoration Hardware (RH) segment, generating $2.92 billion, with an additional contribution of $191.13 million from Waterworks.
Insider Ownership: 17.3%
Earnings Growth Forecast: 53.8% p.a.
RH's growth potential is underscored by its high expected earnings growth of 53.8% per year, significantly outpacing the US market average. However, insider activity shows substantial selling in the past three months, raising concerns despite a forecasted high return on equity of 79.2%. The company's revenue is projected to grow at 11.4% annually, faster than the broader market but below the threshold for rapid expansion. RH trades at a discount to fair value estimates yet faces challenges with profit margins and interest coverage.
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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.
