As the U.S. stock market experiences turbulence, with major indices like the Dow Jones Industrial Average and S&P 500 facing significant declines due to Federal Reserve policy signals, investors are increasingly seeking stability in growth companies with strong insider ownership. In this context, high insider ownership can indicate confidence from those closest to the business, potentially offering a layer of resilience amid broader market volatility.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Silvaco Group, Inc. offers technology computer-aided design software, electronic design automation software, and semiconductor intellectual property solutions with a market cap of $250.19 million.
Operations: The company generates revenue primarily from its Software & Programming segment, which accounts for $54.31 million.
Insider Ownership: 37.3%
Earnings Growth Forecast: 98.3% p.a.
Silvaco Group faces challenges with a recent net loss of US$6.55 million for Q3 2024, contrasting with a net income of US$1.45 million the previous year. Despite this, revenue is projected to grow faster than the U.S. market at 17.5% annually, and profitability is expected within three years. Insider activity shows significant selling recently, but shares are trading well below their estimated fair value, suggesting potential undervaluation amidst high volatility and strategic leadership changes.
Overview: Travelzoo, with a market cap of $250.84 million, operates as an Internet media company offering travel, entertainment, and local experiences globally.
Operations: The company's revenue is derived from several segments, including Travelzoo North America ($54.97 million), Travelzoo Europe ($24.90 million), Jack’s Flight Club ($4.27 million), and New Initiatives ($0.24 million).
Insider Ownership: 38.3%
Earnings Growth Forecast: 34.7% p.a.
Travelzoo's Q3 2024 results show a net income increase to US$3.18 million from US$2.35 million, despite slightly lower sales of US$20.1 million. The company is executing a share repurchase program, having bought back over 10% of shares for US$12.57 million, signaling confidence in its valuation. Forecasts indicate robust revenue growth at 24.8% annually and significant earnings growth at 34.7%, outpacing the broader U.S market, although recent insider selling may concern some investors.
Overview: ZKH Group Limited operates a maintenance, repair, and operating (MRO) products trading and service platform in China, offering spare parts, chemicals, manufacturing parts, general consumables, and office supplies with a market cap of approximately $562.21 million.
Operations: The company's revenue primarily comes from its Business-To-Business Trading and Services of Industrial Products segment, which generated CN¥8.84 billion.
Insider Ownership: 17.7%
Earnings Growth Forecast: 120.3% p.a.
ZKH Group's recent strategic partnership with Zhejiang Tmall Technology is set to enhance its industrial product offerings and market reach. Despite a net loss of CNY 81.75 million in Q3 2024, the company shows improvement from the previous year. Revenue growth is forecasted at 10.2% annually, exceeding the U.S market average, and profitability is expected within three years. Trading significantly below estimated fair value, ZKH offers potential upside as analyst consensus predicts a price increase of 22.6%.
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.
