Stock Analysis

June 2024 Insight Into ASX Growth Companies With High Insider Ownership

As commodity prices and global economic indicators continue to shape the ASX200's performance, investors are closely monitoring the market's subtle shifts. In this landscape, understanding the significance of high insider ownership can be particularly valuable, especially in growth companies where such a stake often signals strong confidence in the company’s future amidst fluctuating markets.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Hartshead Resources (ASX:HHR)13.9%86.3%
Cettire (ASX:CTT)28.7%29.9%
Gratifii (ASX:GTI)15.6%112.4%
Acrux (ASX:ACR)14.6%115.3%
Doctor Care Anywhere Group (ASX:DOC)28.4%96.4%
Alpha HPA (ASX:A4N)26.3%95.9%
Botanix Pharmaceuticals (ASX:BOT)11.4%120.9%
Hillgrove Resources (ASX:HGO)10.4%45.4%
Plenti Group (ASX:PLT)12.8%106.4%
Liontown Resources (ASX:LTR)16.4%63.9%

Click here to see the full list of 90 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Bell Financial Group (ASX:BFG)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Bell Financial Group Limited, with a market cap of approximately A$426.59 million, offers broking, online broking, corporate finance, and financial advisory services to private, institutional, and corporate clients.

Operations: The company generates revenue through four primary segments: retail broking (A$103.58 million), institutional broking (A$50.36 million), financial products and services (A$48.10 million), and technology and platform services (A$26.20 million).

Insider Ownership: 10.7%

Earnings Growth Forecast: 26.9% p.a.

Bell Financial Group, an Australian entity, demonstrates a strong growth trajectory with its earnings forecast to increase by 26.95% annually. Despite trading at 25.2% below its estimated fair value, it faces challenges with a low forecast Return on Equity of 16.3%. Additionally, while its revenue growth at 5.6% per year surpasses the national average slightly, it does not reach high-growth benchmarks. Recent activities include presentations at the Bell Potter Emerging Leaders Conference and an AGM in March 2024.

ASX:BFG Ownership Breakdown as at Jun 2024

IperionX (ASX:IPX)

Simply Wall St Growth Rating: ★★★★★☆

Overview: IperionX Limited is a company focused on the exploration and development of mineral properties in the United States, with a market capitalization of approximately A$694.38 million.

Operations: The firm is primarily involved in the exploration and development of mineral properties in the United States.

Insider Ownership: 14.0%

Earnings Growth Forecast: 47.4% p.a.

IperionX is poised for significant growth with a revenue increase forecast at 76.4% annually, substantially outpacing the Australian market's average. Despite this, its Return on Equity is expected to remain modest at 11.7%. Recent strategic moves include a A$50 million equity offering and partnerships aimed at expanding its high-performance titanium product line into defense and industrial sectors, notably with Vegas Fastener Manufacturing and United Stars Holdings, enhancing its market position in robust industries.

ASX:IPX Earnings and Revenue Growth as at Jun 2024

Lotus Resources (ASX:LOT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lotus Resources Limited is a company focused on the exploration, evaluation, and development of uranium properties in Australia and Africa, with a market capitalization of approximately A$869.83 million.

Operations: The firm primarily generates revenue from the exploration, evaluation, and development of uranium properties across Australia and Africa.

Insider Ownership: 12.3%

Earnings Growth Forecast: 58.9% p.a.

Lotus Resources, an emerging player in the Australian market, is expected to become profitable within three years, a trajectory well above average market growth. Despite currently generating less than A$1 million in revenue, analysts project a significant price increase of 37.4%. The company's forecasted Return on Equity is very high at 69.3% in three years. Recently added to the S&P/ASX 300 and Small Ordinaries Indexes, Lotus Resources shows potential amid challenges like shareholder dilution over the past year.

ASX:LOT Ownership Breakdown as at Jun 2024

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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.

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