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US Growth Companies With High Insider Ownership To Watch
editorial-team@simplywallst.com (Simply Wall St)
4 min read
As major U.S. stock indexes navigate a period of slight declines and heightened anticipation for tech earnings, investors are keenly observing market dynamics and potential opportunities. In this context, growth companies with high insider ownership can be particularly compelling, as substantial insider stakes often signal confidence in the company's future prospects amidst evolving economic conditions.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: PubMatic, Inc. operates a global cloud infrastructure platform that facilitates real-time programmatic advertising transactions, with a market capitalization of approximately $1.09 billion.
Operations: The company generates its revenue primarily from Internet information providers, totaling $278.31 million.
Insider Ownership: 16.8%
Revenue Growth Forecast: 10.8% p.a.
PubMatic recently reported a notable improvement in financial performance, with first-quarter sales rising to US$66.7 million from US$55.41 million year-over-year and a reduced net loss. The company anticipates continued growth, projecting second-quarter revenues between US$69 million and US$71 million and raising its full-year 2024 revenue forecast to between US$296 million and US$304 million. Despite dropping from multiple Russell indexes, PubMatic has demonstrated robust insider confidence through substantial share repurchases, totaling 5,140,129 shares for US$79.37 million since early 2023. This aligns with the company's strategic partnerships aimed at enhancing programmatic advertising capabilities and expanding market reach.
Overview: Southern States Bancshares, Inc., functioning as the holding company for Southern States Bank, offers community banking services to businesses and individuals, with a market capitalization of approximately $267.26 million.
Operations: The firm provides community banking services, primarily catering to businesses and individuals.
Insider Ownership: 17.2%
Revenue Growth Forecast: 20.8% p.a.
Southern States Bancshares, trading at 52.8% below estimated fair value, shows promise with earnings forecast to grow by 20% annually, outpacing the US market's 14.8%. Despite a slight dip in net income from US$8.76 million to US$8.2 million in Q2 2024, revenue growth projections remain strong at 20.8% yearly, significantly above the market average of 8.6%. However, shareholder dilution over the past year and lack of recent insider buying may temper optimism slightly.
Overview: Innovid Corp. operates an independent software platform offering ad serving, measurement, and creative services, with a market capitalization of approximately $293.16 million.
Operations: The company generates revenue primarily through its advertising and creative services segment, totaling $146.14 million.
Insider Ownership: 10.9%
Revenue Growth Forecast: 11.5% p.a.
Innovid, trading at 68.6% below estimated fair value, is poised for significant growth with earnings expected to surge by 116.83% annually. Despite a forecasted lower return on equity of 4.3% in three years and recent shareholder dilution, the company's revenue growth outpaces the US market average at 11.5% per year. Recent inclusion in multiple Russell indexes and raised corporate guidance underscore its growth trajectory amidst substantial insider selling over the past quarter.
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.
