As the S&P 500 and Nasdaq Composite experience fluctuations ahead of major tech earnings, investors are increasingly focused on companies with strong fundamentals and insider ownership. In this environment, growth stocks with high insider ownership can offer a unique blend of potential upside and alignment between company leadership and shareholders.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Bank of Marin Bancorp, with a market cap of $361.58 million, operates as the holding company for Bank of Marin, providing financial services mainly to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States.
Operations: The company generates $97.64 million in revenue from its banking segment, offering a variety of financial services primarily to small and medium-sized enterprises, not-for-profits, and commercial real estate investors in the U.S.
Insider Ownership: 11%
Bank of Marin Bancorp's earnings are forecast to grow significantly over the next three years, outpacing the US market. Despite a recent net loss of US$21.9 million for Q2 2024 and lower profit margins compared to last year, insider ownership remains substantial, signaling confidence in long-term growth. However, revenue is expected to grow slower than 20% annually, and the current dividend may not be well covered by earnings.
Overview: Credit Acceptance Corporation provides financing programs and related products and services in the United States, with a market cap of $6.94 billion.
Operations: The company's revenue segment includes offering dealers financing programs and related products and services, generating $866.70 million.
Insider Ownership: 14.4%
Credit Acceptance Corporation, recently added to multiple Russell Growth Indices, is forecasted to see significant annual earnings growth of 35.9% and revenue growth of 45.5%, both outpacing the US market. Despite a high debt level and a drop in Q1 net income from US$99.5 million to US$64.3 million year-over-year, insider ownership remains strong with no substantial recent insider trading activity, indicating confidence in its long-term potential.
Overview: Youdao, Inc. is an internet technology company offering online services in content, community, communication, and commerce in China with a market cap of $414.73 million.
Operations: The company's revenue segments include CN¥3.13 billion from Learning Services, CN¥1.61 billion from Online Marketing Services, and CN¥877.64 million from Smart Devices.
Insider Ownership: 20.3%
Youdao, Inc., a growth company with high insider ownership, is trading at 89.1% below its estimated fair value and is forecast to grow revenue by 11.9% annually, outpacing the US market's average. Recent product launches like the Youdao Dictionary Pen X7 highlight its innovative edge in EdTech. The company reported Q1 revenue of CNY 1.39 billion and net income of CNY 12.43 million, reversing a prior year's loss, signaling improving financial health and profitability prospects within three years.
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.
