As U.S. markets navigate a period of uncertainty with the Federal Reserve maintaining interest rates and investors closely watching major tech earnings, attention turns to identifying promising growth opportunities. In such a climate, companies with high insider ownership can be appealing, as they often signal confidence from those most familiar with the business's potential.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Alphatec Holdings, Inc. is a medical technology company specializing in the design, development, and advancement of technologies for the surgical treatment of spinal disorders globally, with a market cap of approximately $1.62 billion.
Operations: The company's revenue is primarily derived from its Medical Products segment, which generated $572.74 million.
Insider Ownership: 11.9%
Revenue Growth Forecast: 14.9% p.a.
Alphatec Holdings is poised for growth, with insider ownership aligning interests with shareholders. The company expects significant revenue growth of approximately 20% in 2025, reaching US$732 million. Despite a volatile share price and current losses, Alphatec is forecast to become profitable within three years and shows strong earnings potential with an expected annual profit growth of 53.6%. Trading at a substantial discount to its estimated fair value also suggests good relative value compared to peers.
Overview: Clover Health Investments, Corp. offers Medicare Advantage plans in the United States and has a market cap of approximately $2.30 billion.
Operations: Clover Health Investments generates revenue through its provision of Medicare Advantage plans in the United States.
Insider Ownership: 21.6%
Revenue Growth Forecast: 10.4% p.a.
Clover Health Investments is positioned for potential growth, with insider ownership aligning interests. The company reported a reduced net loss of US$9.16 million for Q3 2024, down from US$41.47 million the previous year, indicating improving financials. Revenue is projected to grow at 10.4% annually, surpassing the broader US market's growth rate of 9%. Trading significantly below its estimated fair value suggests attractive valuation prospects despite current losses and no recent insider trading activity.
Overview: Youdao, Inc. is an internet technology company offering online services in content, community, communication, and commerce in China with a market cap of approximately $903.56 million.
Operations: The company's revenue segments include CN¥2.91 billion from Learning Services, CN¥1.97 billion from Online Marketing Services, and CN¥885.63 million from Smart Devices.
Insider Ownership: 20.3%
Revenue Growth Forecast: 11.8% p.a.
Youdao's earnings are forecast to grow significantly at 98.6% annually, outpacing the US market, though revenue growth of 11.8% lags behind high-growth benchmarks. The company recently became profitable, reporting a net income of CNY 86.25 million for Q3 2024 compared to a loss last year, indicating improving financial health despite large one-off items affecting results. There has been no substantial insider trading activity recently and interest payments remain poorly covered by earnings.
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.
