As the U.S. stock market continues its impressive rally, with the S&P 500 and Dow Jones Industrial Average reaching record highs, investors are increasingly focused on identifying growth opportunities in this bullish environment. In such a climate, stocks with high insider ownership can be particularly appealing as they often indicate confidence from those closest to the company's operations and strategic direction.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Hesai Group develops, manufactures, and sells three-dimensional LiDAR solutions across Mainland China, Europe, North America, and other international markets with a market cap of approximately $605.52 million.
Operations: Revenue Segments (in millions of CN¥): Hesai Group's revenue is derived from its activities in developing, manufacturing, and selling three-dimensional LiDAR solutions across various regions including Mainland China, Europe, North America, and other international markets.
Insider Ownership: 24.4%
Hesai Group is experiencing significant growth potential, driven by its advanced lidar technology and strategic partnerships, such as with Leapmotor and SAIC Volkswagen. The company forecasts revenue to approach US$100 million in Q4 2024, with an expected net profit of US$20 million. Despite a volatile share price and current losses, Hesai's revenue is forecast to grow at 28.6% annually, outpacing the market average. Its innovative OT128 lidar solution enhances its competitive edge in autonomous driving sectors globally.
Overview: Youdao, Inc. is an internet technology company offering online services in content, community, communication, and commerce in China with a market cap of approximately $633.45 million.
Operations: Revenue segments for the company include CN¥2.91 billion from Learning Services, CN¥1.97 billion from Online Marketing Services, and CN¥885.63 million from Smart Devices.
Insider Ownership: 20.3%
Youdao, Inc. has shown a turnaround in profitability with a net income of CNY 86.25 million for Q3 2024, compared to a loss last year, while revenue increased slightly to CNY 1.57 billion. Despite being dropped from the S&P Global BMI Index and having negative shareholder equity, its earnings are forecasted to grow significantly at over 95% annually, outpacing the US market average. The company completed a share buyback of US$33.8 million recently.
Overview: Live Oak Bancshares, Inc. is a bank holding company for Live Oak Banking Company, offering a range of banking products and services in the United States, with a market cap of approximately $2.20 billion.
Operations: The company's revenue is primarily derived from its Banking segment, which accounts for $415.44 million, with an additional contribution of $4.23 million from its Fintech operations.
Insider Ownership: 23.7%
Live Oak Bancshares exhibits strong growth potential with forecasted revenue and earnings growth rates significantly exceeding the US market's averages. Despite a high level of non-performing loans at 2.8%, insider transactions show more buying than selling recently, indicating confidence in its prospects. The stock trades at a substantial discount to its estimated fair value. Recent quarterly results revealed increased net interest income but a decline in net income, highlighting mixed financial performance amidst anticipated future growth.
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.
