As the U.S. stock market seeks to recover from a recent downturn, with major indices like the Dow Jones Industrial Average and S&P 500 experiencing fluctuations, investors are paying close attention to growth companies that demonstrate resilience. In this context, companies with high insider ownership often attract interest due to their potential alignment of management's interests with those of shareholders, making them noteworthy in today's market environment.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Burke & Herbert Financial Services Corp. is a bank holding company for Burke & Herbert Bank & Trust Company, offering community banking products and services in Virginia and Maryland, with a market cap of approximately $1.03 billion.
Operations: The company generates revenue of $181.38 million from its community banking products and services in Virginia and Maryland.
Insider Ownership: 12.4%
Earnings Growth Forecast: 72.5% p.a.
Burke & Herbert Financial Services is poised for substantial growth, with revenue expected to rise 27.4% annually, outpacing the US market. Despite a recent $350 million shelf registration filing indicating potential capital raising, insider activity remains positive with more shares bought than sold in the past three months. However, profit margins have declined from last year and shareholders experienced significant dilution. Earnings are forecast to grow significantly at 72.5% per year despite low return on equity projections.
Overview: Clearfield, Inc. manufactures and sells a range of fiber connectivity products both in the United States and internationally, with a market cap of approximately $403.80 million.
Operations: The company generates revenue from its segments, with Clearfield contributing $125.63 million and Nestor Cables adding $43.41 million.
Insider Ownership: 16.6%
Earnings Growth Forecast: 91.1% p.a.
Clearfield, Inc. is forecasted to achieve significant earnings growth of 91.08% annually and is expected to become profitable within three years, outperforming the broader US market's growth expectations. Despite a challenging fiscal year with sales declining from US$268.72 million to US$166.71 million and a net loss of US$12.45 million, analysts project a stock price increase of 62.8%. The company trades at 66.3% below its estimated fair value and anticipates revenue between US$170-185 million for fiscal year 2025, driven by domestic market expansion efforts and strategic leadership changes aimed at enhancing marketing strategies and product innovation in fiber solutions.
Overview: Fiverr International Ltd. operates a global online marketplace and has a market cap of approximately $989.42 million.
Operations: Fiverr generates revenue through its online marketplace operations worldwide.
Insider Ownership: 13.9%
Earnings Growth Forecast: 42.9% p.a.
Fiverr International is poised for substantial growth, with earnings projected to rise 42.9% annually, outpacing the US market average. The company anticipates revenue between US$388 million and US$390 million for 2024, reflecting steady expansion. Trading at a significant discount of 45.2% below its estimated fair value, analysts foresee a potential stock price increase of 24.5%. Despite no recent insider trading activity, its strong forecasted return on equity at 24.6% underscores robust financial health.
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.
