With the U.S. stock market experiencing a positive surge due to benign CPI inflation data and strong bank earnings, investors are keenly observing growth opportunities amid sliding Treasury yields. In such an environment, stocks with high insider ownership and robust revenue growth up to 25% stand out as potentially promising investments, offering a blend of confidence from those closest to the company and tangible financial performance.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Burke & Herbert Financial Services Corp. is the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Virginia and Maryland, with a market cap of $906.30 million.
Operations: The company generates revenue of $181.38 million from its community banking operations in Virginia and Maryland.
Insider Ownership: 12.5%
Revenue Growth Forecast: 25.1% p.a.
Burke & Herbert Financial Services shows potential for growth with significant insider buying over the past three months and forecasted earnings growth of 66% annually, outpacing the US market. However, challenges include a dividend not well covered by earnings and substantial shareholder dilution recently. Despite trading below its estimated fair value, profit margins have decreased from last year. Recent executive changes and a $350 million shelf registration filing may impact future performance.
Overview: Futu Holdings Limited operates as a digital securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $10.71 billion.
Operations: The company generates revenue primarily from its online brokerage services and margin financing services, totaling HK$10.16 billion.
Insider Ownership: 36.6%
Revenue Growth Forecast: 18.9% p.a.
Futu Holdings demonstrates growth potential with earnings expected to grow significantly faster than the US market, despite revenue growth being slightly below 20% annually. The company trades at a good value compared to peers and recently expanded its ETF-based robo-advisory services in collaboration with BlackRock. Recent financial results show increased revenue and net income year-over-year, while a special cash dividend of US$280 million will be distributed from surplus cash reserves.
Overview: FB Financial Corporation, with a market cap of $2.40 billion, operates as a bank holding company for FirstBank, offering a range of commercial and consumer banking services to businesses, professionals, and individuals.
Operations: The company's revenue segments include $391.62 million from banking services and $44.78 million from mortgage operations.
Insider Ownership: 25.3%
Revenue Growth Forecast: 12.3% p.a.
FB Financial shows promising growth potential with earnings expected to grow significantly faster than the US market. The stock trades below its estimated fair value and insiders have been net buyers in recent months, indicating confidence. However, recent earnings reveal a decline in net income year-over-year to US$10.22 million for Q3 2024. Revenue growth is projected at 12.3% annually, which is above the market average but not exceptionally high.
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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.
