As the U.S. stock market experiences a slight dip following record highs, investors are taking a moment to reassess their strategies amid ongoing economic developments. In this environment, companies with strong growth potential and high insider ownership can be appealing as they often indicate confidence from those closest to the business's operations and future prospects.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: California BanCorp operates as the bank holding company for California Bank of Commerce, N.A., with a market cap of $576.40 million.
Operations: The company generates revenue primarily through its Commercial Banking segment, which accounted for $78.31 million.
Insider Ownership: 17%
Revenue Growth Forecast: 35.5% p.a.
California BanCorp's revenue is forecast to grow at 35.5% annually, outpacing the US market's growth rate. Despite a net loss of US$16.46 million in Q3 2024, earnings are expected to grow significantly by 106.72% per year and become profitable within three years. The company recently appointed Jerry Legg as Senior Vice President, enhancing its leadership team amid no significant insider trading activity or share buybacks in recent months.
Overview: Community West Bancshares is the bank holding company for Central Valley Community Bank, offering a range of commercial banking services to small and middle-market businesses and individuals in California's central valley, with a market cap of $415.29 million.
Operations: The company generates its revenue primarily through banking operations, totaling $95.15 million.
Insider Ownership: 11.9%
Revenue Growth Forecast: 18.4% p.a.
Community West Bancshares is trading below its estimated fair value, with insiders purchasing more shares than they sold in the past three months. Despite significant earnings growth forecasts of 73.8% annually, recent financial results show a decline in net income and profit margins due to large one-off items. Revenue is expected to grow at 18.4% per year, surpassing the US market average but slower than desired for high-growth companies. The dividend yield of 2.17% raises sustainability concerns given current earnings coverage issues.
Overview: Peapack-Gladstone Financial Corporation is the bank holding company for Peapack-Gladstone Bank, offering private banking and wealth management services in the United States, with a market cap of $630.64 million.
Operations: The company's revenue is derived from two primary segments: Banking, which generates $146.72 million, and Peapack Private, contributing $63.05 million.
Insider Ownership: 10.5%
Revenue Growth Forecast: 18.5% p.a.
Peapack-Gladstone Financial shows potential with earnings projected to grow at 35.6% annually, outpacing the US market. Despite trading significantly below its estimated fair value, recent financials reveal a decline in net income and profit margins. Revenue growth is expected at 18.5% per year, above the market average but not exceptionally high for growth companies. Insider activity has been mixed, with no substantial buying or selling recently noted. The company completed a share buyback worth $18.26 million under its current program.
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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.
