Amidst a positive trading session on the Australian market, with sectors like IT and Materials leading gains, investors are keenly observing growth companies that demonstrate strong insider ownership. In the current climate, where confidence is bolstered by robust performances in both local and international markets, stocks with significant insider backing can be appealing due to their potential for aligned interests and long-term commitment from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Dropsuite Limited offers cloud-based data backup and archiving solutions across various regions including Australia, Singapore, Europe, and the United States, with a market cap of A$406.10 million.
Operations: The company's revenue is primarily derived from the provision of backup services, totaling A$41.17 million.
Insider Ownership: 14.0%
Earnings Growth Forecast: 33.8% p.a.
Dropsuite is experiencing significant earnings growth, forecasted at 33.8% annually, outpacing the Australian market. However, its net profit margin has declined from 5.2% to 2%. Recent developments include a definitive agreement for acquisition by NinjaOne Australia Pty Ltd for A$414.53 million, pending shareholder approval on May 9, 2025. Dropsuite's board recommends the deal in the absence of superior offers and with continued positive independent expert opinion.
Overview: Kogan.com Ltd is an online retailer operating in Australia with a market capitalization of A$434.45 million.
Operations: The company generates revenue through its operations in Australia and New Zealand, with A$9.96 million from Mighty Ape in Australia, A$309.36 million from Kogan Parent in Australia, A$124.88 million from Mighty Ape in New Zealand, and A$40.02 million from Kogan Parent in New Zealand.
Insider Ownership: 21%
Earnings Growth Forecast: 38.1% p.a.
Kogan.com demonstrates strong growth potential with earnings forecasted to grow at 38.1% annually, significantly outpacing the Australian market. Despite a decrease in profit margins from 1.4% to 0.4%, insider confidence remains high with substantial share purchases over the past three months and no significant sales. Trading well below estimated fair value, Kogan.com's revenue is expected to grow at 7.2% per year, surpassing the broader market's growth rate of 5.9%.
Overview: Nanosonics Limited is a global infection prevention company with a market capitalization of A$1.43 billion.
Operations: The company's revenue is primarily derived from its Healthcare Equipment segment, which generated A$183.97 million.
Insider Ownership: 15.4%
Earnings Growth Forecast: 24.3% p.a.
Nanosonics shows promising growth potential with earnings projected to increase significantly, outpacing the Australian market's average. Recent results indicate robust performance, with half-year sales rising to A$93.6 million from A$79.64 million and net income improving to A$9.76 million. Insider activity reflects confidence, with more shares bought than sold in recent months despite modest volumes. The stock trades below estimated fair value and revenue growth is expected to exceed the market average over the next few 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.
Companies discussed in this article include ASX:DSE ASX:KGN and ASX:NAN.
