As the U.S. stock market steadies following a recent selloff, major indexes have inched higher, reflecting cautious optimism amid ongoing geopolitical tensions and anticipated economic data releases. In this environment, investors often look for growth companies with significant insider ownership, as this can indicate strong confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for the workforce in the United States, with a market cap of approximately $9.05 billion.
Operations: The company's revenue is primarily generated from its cloud-based software solutions, totaling $1.40 billion.
Insider Ownership: 21.1%
Paylocity Holding demonstrates characteristics of a growth company with high insider ownership, trading at 30.8% below its estimated fair value. Despite slower forecasted revenue growth at 9.8% annually, its earnings are expected to outpace the US market with a 15.9% annual increase. Recent product innovations and AI enhancements, like Benefits Decision Support, bolster its comprehensive HCM platform, while recent executive changes and share buybacks reflect strategic shifts within the company.
Overview: UP Fintech Holding Limited offers online brokerage services primarily targeting Chinese investors, with a market cap of approximately $980.08 million.
Operations: The company generates revenue of $250.01 million from its brokerage services.
Insider Ownership: 23.7%
UP Fintech Holding shows potential with earnings forecasted to grow 22.8% annually, outpacing the US market's 15.2%. Despite a volatile share price and slower revenue growth at 10.4%, it's still above the market average of 8.7%. Recent results show increased revenue to US$87.44 million for Q2, though net income declined to US$2.59 million from last year, indicating challenges alongside growth prospects in its financial performance trajectory.
Overview: Sea Limited operates in digital entertainment, e-commerce, and digital financial services across Southeast Asia, Latin America, and other international markets with a market cap of $55.99 billion.
Operations: The company's revenue is derived from its digital entertainment, e-commerce, and digital financial services segments across Southeast Asia, Latin America, and other international markets.
Insider Ownership: 15.1%
Sea Limited is positioned for growth with revenue expected to increase by 12.5% annually, surpassing the US market average. Despite trading below its estimated fair value, recent financials show a decline in net income to US$79.91 million for Q2 compared to last year. Board changes include new independent directors, enhancing governance. The company's profitability forecast is above average market growth over the next three years, though Return on Equity remains modest at 16.9%.
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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.
