In the current U.S. market landscape, stocks are experiencing a modest upswing as Treasury yields decline following a slight slowdown in wholesale inflation, providing investors with cautious optimism about potential interest rate cuts. In this environment, growth companies with strong insider ownership can offer unique insights into their potential for long-term success, as high insider stakes often indicate confidence in the company's future prospects and alignment with shareholder interests.
Top 10 Growth Companies With High Insider Ownership In The United States
Name
Insider Ownership
Earnings Growth
Atour Lifestyle Holdings (NasdaqGS:ATAT)
26%
25.2%
Super Micro Computer (NasdaqGS:SMCI)
14.4%
28.2%
On Holding (NYSE:ONON)
19.1%
29.7%
Astera Labs (NasdaqGS:ALAB)
16.1%
62.6%
D-Market Elektronik Hizmetler ve Ticaret (NasdaqGS:HEPS)
Overview: Allegiant Travel Company is a leisure travel company that offers travel services and products to residents of under-served cities in the United States, with a market cap of approximately $1.52 billion.
Operations: The company's revenue is primarily derived from its airline segment, which generated $2.44 billion, complemented by $71.75 million from the Sunseeker Resort segment.
Insider Ownership: 21.6%
Earnings Growth Forecast: 113.2% p.a.
Allegiant Travel Company is experiencing challenges with a significant net loss of US$216.23 million in Q4 2024, despite revenue growth to US$627.71 million from the previous year. The company has expanded its network with new routes and low fares, aiming to capitalize on leisure demand. Although insider activity shows more buying than selling recently, financial stability concerns persist due to insufficient earnings coverage for interest payments and modest return on equity forecasts at 10.1%.
Overview: HashiCorp, Inc. provides multi-cloud infrastructure automation solutions globally and has a market cap of approximately $6.97 billion.
Operations: The company's revenue segment is Internet Software & Services, generating $654.89 million.
Insider Ownership: 12.3%
Earnings Growth Forecast: 57.6% p.a.
HashiCorp shows strong growth potential, with revenue rising to US$173.39 million in Q3 2024 and a reduced net loss of US$13.01 million. Forecasts indicate annual earnings growth of 57.62% and revenue expansion at 14.4% per year, surpassing the US market average. Despite no recent insider trading activity, the company is trading slightly below its estimated fair value and aims for profitability within three years, though return on equity is projected to remain modest at 11%.
Overview: TPG Inc. is an alternative asset manager with operations in the United States and internationally, and it has a market cap of approximately $22.19 billion.
Operations: TPG generates its revenue primarily through its alternative asset management operations both domestically and internationally.
Insider Ownership: 10.1%
Earnings Growth Forecast: 49.2% p.a.
TPG is poised for significant earnings growth at 49.24% annually, outpacing the US market's 14.6%. Despite this, its revenue is expected to decline by 11.4% per year over the next three years. The company trades at a good value compared to peers but faces challenges with low profit margins and unsustainable dividends. Recent M&A discussions highlight strategic moves, including potential acquisitions in whiskey and healthcare sectors, reflecting a focus on diversification and expansion opportunities.
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.
