As the U.S. stock market hits record highs with the S&P 500 and Dow Jones Industrial Average posting their biggest monthly gains of 2024, investors are keenly observing growth companies with robust insider ownership. In such an environment, stocks that combine strong growth potential with significant insider investment can offer a compelling proposition, as they often indicate confidence in the company's future prospects by those who know it best.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $12.03 billion.
Operations: The company generates revenue from online brokerage services and margin financing services, totaling HK$10.16 billion.
Insider Ownership: 36.6%
Earnings Growth Forecast: 22.7% p.a.
Futu Holdings demonstrates strong growth potential with significant earnings growth forecasted at 22.7% annually, outpacing the US market. Despite a volatile share price, it trades below its estimated fair value and offers good relative value compared to peers. Recent earnings reports show substantial revenue and net income increases for Q3 2024. Additionally, Futu announced a special dividend of US$2 per ADS, funded by surplus cash, reflecting robust financial health and shareholder focus.
Overview: Kanzhun Limited, with a market cap of $5.88 billion, offers online recruitment services in the People's Republic of China through its subsidiaries.
Operations: The company generates revenue of CN¥6.81 billion from its Internet Information Providers segment, focusing on online recruitment services in China.
Insider Ownership: 16.3%
Earnings Growth Forecast: 21% p.a.
Kanzhun is positioned for strong growth with earnings expected to rise significantly at 21% annually, surpassing the US market's average. The company recently completed a share buyback, acquiring 3.01% of its shares for $200 million, indicating confidence in its valuation. Despite trading at 33.5% below estimated fair value, revenue growth is projected at 13.7%, outpacing the broader market but slower than earnings growth projections, suggesting potential profitability improvements over time.
Overview: Dingdong (Cayman) Limited is an e-commerce company operating in China with a market capitalization of $930.13 million.
Operations: The company generates revenue primarily from its online retailers segment, which amounted to CN¥22.15 billion.
Insider Ownership: 28.2%
Earnings Growth Forecast: 33% p.a.
Dingdong (Cayman) is poised for substantial earnings growth, projected at 33% annually over the next three years, outpacing the US market. Despite high share price volatility and trading significantly below its estimated fair value, recent financial results show strong performance with Q3 revenue of CNY 6.54 billion and net income of CNY 133.41 million. The company has raised its financial guidance for 2024, reflecting confidence in achieving GAAP profitability this year.
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.
