Stock Analysis
3 ASX Growth Stocks With High Insider Ownership Seeing Up To 55% Earnings Growth
Reviewed by Simply Wall St
As the ASX200 experiences its third consecutive weekly gain, buoyed by a softer US stance on tariffs and calls for lower oil prices and interest rates, investors are keenly observing sectors like Discretionary and Real Estate that have shown robust performance. In this favorable environment, growth companies with substantial insider ownership can offer unique insights into potential earnings expansion, as insiders' vested interests often align closely with shareholder value creation.
Top 10 Growth Companies With High Insider Ownership In Australia
| Name | Insider Ownership | Earnings Growth |
| Clinuvel Pharmaceuticals (ASX:CUV) | 10.4% | 26.2% |
| SKS Technologies Group (ASX:SKS) | 29.7% | 24.8% |
| Medallion Metals (ASX:MM8) | 13.8% | 67.5% |
| Acrux (ASX:ACR) | 20.2% | 91.8% |
| Brightstar Resources (ASX:BTR) | 16.2% | 84.1% |
| Pointerra (ASX:3DP) | 23.8% | 126.4% |
| Newfield Resources (ASX:NWF) | 31.5% | 72.1% |
| AVA Risk Group (ASX:AVA) | 15.8% | 77.3% |
| Plenti Group (ASX:PLT) | 12.7% | 120.1% |
| Findi (ASX:FND) | 35.8% | 110.7% |
We're going to check out a few of the best picks from our screener tool.
Aussie Broadband (ASX:ABB)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Aussie Broadband Limited is an Australian company offering telecommunications and technology services, with a market cap of A$1.08 billion.
Operations: The company's revenue segments include Business (A$96.97 million), Wholesale (A$159.73 million), Residential (A$585.07 million), Symbio Group (A$69.93 million), and Enterprise and Government (A$88.04 million).
Insider Ownership: 11.1%
Earnings Growth Forecast: 23.2% p.a.
Aussie Broadband is experiencing significant earnings growth, projected at 23.2% annually, outpacing the broader Australian market. Despite a slower revenue growth forecast of 8.6%, it remains above the market average. Recent insider activity shows more buying than selling, although no substantial purchases occurred in the past three months. The company announced a share buyback program to enhance shareholder value and maintain financial flexibility amidst leadership changes with Phillip Britt transitioning roles while retaining substantial insider ownership and involvement.
- Get an in-depth perspective on Aussie Broadband's performance by reading our analyst estimates report here.
- According our valuation report, there's an indication that Aussie Broadband's share price might be on the cheaper side.
Emerald Resources (ASX:EMR)
Simply Wall St Growth Rating: ★★★★★★
Overview: Emerald Resources NL is involved in the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.46 billion.
Operations: The company's revenue is primarily derived from mine operations, totaling A$366.04 million.
Insider Ownership: 18.1%
Earnings Growth Forecast: 33.8% p.a.
Emerald Resources is demonstrating robust growth, with earnings projected to increase 33.85% annually, surpassing the Australian market average. Recent enhancements at the Okvau Gold Mine led to record quarterly production and improved financial performance, boosting cash and bullion holdings to A$243 million (US$151 million). Insiders have shown confidence through substantial share purchases in the last three months. The stock trades significantly below estimated fair value, suggesting potential for future appreciation.
- Click to explore a detailed breakdown of our findings in Emerald Resources' earnings growth report.
- Our valuation report unveils the possibility Emerald Resources' shares may be trading at a discount.
Mesoblast (ASX:MSB)
Simply Wall St Growth Rating: ★★★★★★
Overview: Mesoblast Limited develops regenerative medicine products across Australia, the United States, Singapore, and Switzerland with a market cap of approximately A$3.50 billion.
Operations: The company generates revenue primarily from the development of its cell technology platform for commercialization, amounting to $5.90 million.
Insider Ownership: 38.4%
Earnings Growth Forecast: 55.0% p.a.
Mesoblast's strong insider buying over the past three months aligns with its promising growth trajectory, as revenue is expected to increase by 49.1% annually, outpacing the Australian market. The company recently raised A$251.94 million through a follow-on equity offering and received FDA approval for RYONCIL®, enhancing its U.S. market presence. Despite recent shareholder dilution and share price volatility, Mesoblast's stock trades substantially below estimated fair value, indicating potential upside as it moves towards profitability in three years.
- Delve into the full analysis future growth report here for a deeper understanding of Mesoblast.
- Our expertly prepared valuation report Mesoblast implies its share price may be lower than expected.
Make It Happen
- Navigate through the entire inventory of 91 Fast Growing ASX Companies With High Insider Ownership here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Find companies with promising cash flow potential yet trading below their fair value.
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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About ASX:MSB
Mesoblast
Engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland.
