As major U.S. stock indexes, including the Dow Jones, S&P 500, and Nasdaq Composite, edge closer to record highs amidst positive employment data and investor optimism, attention turns toward growth companies with strong insider ownership. In such a market environment, stocks with high insider ownership can be appealing as they often indicate confidence from those closest to the company's operations and strategic direction.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Community West Bancshares is a bank holding company for Central Valley Community Bank, offering commercial banking services to small and middle-market businesses and individuals in California's central valley, with a market cap of $368.30 million.
Operations: The company's revenue is primarily generated from its banking operations, amounting to $105.70 million.
Insider Ownership: 11.9%
Community West Bancshares shows potential as a growth company with high insider ownership, though it faces challenges. Despite substantial shareholder dilution over the past year, its earnings are forecast to grow significantly at 60.4% annually, outpacing the US market. However, profit margins have decreased from last year due to large one-off items affecting results. The stock trades at a significant discount to its estimated fair value and is expected to rise by 21.8% according to analysts' consensus estimates.
Overview: loanDepot, Inc. operates in the United States by originating, financing, selling, and servicing residential mortgage loans and has a market cap of approximately $549.36 million.
Operations: Revenue from the originating, financing, and selling of mortgage loans is $1.01 billion.
Insider Ownership: 11%
loanDepot, Inc. is expanding its market presence through strategic alliances, such as the Onx X+ Mortgage venture with Onx Homes and Ridgeland Mortgage with Smith Douglas Homes. These partnerships aim to enhance its footprint in the purchase mortgage market by leveraging technology and industry expertise. Despite a forecasted return on equity of 13.7% in three years, loanDepot is expected to achieve profitability within that timeframe, with earnings projected to grow significantly at 110.16% annually.
Overview: Live Oak Bancshares, Inc., a bank holding company for Live Oak Banking Company, offers a range of banking products and services in the United States with a market cap of approximately $1.60 billion.
Operations: Live Oak Banking Company generates its revenue through various banking products and services offered in the United States.
Insider Ownership: 23.7%
Live Oak Bancshares is experiencing a mixed financial outlook with net interest income rising to US$97.47 million in Q4 2024, yet net income fell to US$9.9 million from the previous year. Despite this, its earnings are projected to grow significantly at 36% annually over the next three years, outpacing the broader U.S. market's growth rate of 14.8%. The company also benefits from high insider ownership and trades below estimated fair value by 42.1%.
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.
