The ASX200 made a small recovery today after the torrid start to the week, closing up a quarter of a per cent to about 7700 points. Real Estate made the biggest recovery, adding nearly 1.3%, followed by Utilities and Telecommunications – which were both up around 1%. In this fluctuating market environment, identifying growth companies with high insider ownership can be particularly rewarding as insiders often have better insights into their company's potential and are more likely to align their interests with those of shareholders. Here are three top ASX growth companies that stand out due to significant insider ownership as of August 2024.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Capricorn Metals Ltd is an Australian company involved in the evaluation, exploration, development, and production of gold properties with a market cap of A$2.14 billion.
Operations: Capricorn Metals Ltd generates revenue primarily from its Karlawinda gold property, amounting to A$356.94 million.
Insider Ownership: 12.3%
Return On Equity Forecast: 32% (2026 estimate)
Capricorn Metals is poised for significant growth, with earnings forecasted to increase by 27% annually, outpacing the Australian market's 12.9%. Despite a drop in profit margins from 25.4% to 5.2%, the company trades at a substantial discount—57.3% below fair value estimates—and is expected to maintain high returns on equity (32.5%) over three years. Recent presentations at the Diggers & Dealers Mining Forum highlight ongoing strategic initiatives and operational insights from key executives.
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally, with a market cap of A$6.76 billion.
Operations: The company's revenue segments include Software (A$317.24 million), Corporate (A$83.83 million), and Consulting (A$68.13 million).
Insider Ownership: 12.3%
Return On Equity Forecast: 33% (2027 estimate)
Technology One exhibits strong growth potential, with earnings forecasted to grow at 14.8% annually, surpassing the Australian market's 12.9%. Revenue is also expected to increase by 11.5% per year. Recent developments include the appointment of Paul Robson as an independent Non-Executive Director, enhancing strategic transformation and operational efficiency capabilities. The company's recent half-year results showed revenue rising to A$240.83 million and net income increasing to A$48 million, reflecting robust performance and growth momentum in its SaaS business model.
Overview: Universal Store Holdings Limited is an Australian specialty retailer offering casual fashion, shoes, accessories, lifestyle products, and gifts for men and women with a market cap of A$455.72 million.
Operations: The company generates revenue from its Universal Store segment (A$244.13 million) and CTC segment (A$42.84 million).
Insider Ownership: 16.3%
Return On Equity Forecast: 22% (2026 estimate)
Universal Store Holdings demonstrates strong growth potential, with revenue forecasted to grow at 9.1% annually, outpacing the Australian market's 4.9%. Earnings are expected to increase by 13.16% per year, also exceeding market expectations. Recent corporate guidance for FY2024 projects group sales of A$288.5 million and underlying EBIT between A$46 million and A$47 million. Despite an unstable dividend track record, the stock trades at a significant discount to its estimated fair value.
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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.
Companies discussed in this article include ASX:CMM ASX:TNE and ASX:UNI.
