Stock Analysis

Discover Three ASX Growth Companies With High Insider Stakes

ASX:CTT
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Amidst the fluctuating Australian market, as evidenced by recent movements in the ASX200 following the Reserve Bank of Australia's latest minutes, investors continue to navigate through varying economic signals. In such a landscape, growth companies with high insider ownership can offer an intriguing opportunity for those looking to align with management's vested interests in their company’s success. In today's uncertain market environment, stocks with significant insider stakes might be particularly compelling as they suggest confidence from those who know the company best.

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%26.7%
Acrux (ASX:ACR)14.6%115.3%
Plenti Group (ASX:PLT)12.8%106.4%
Change Financial (ASX:CCA)26.6%76.4%
Hillgrove Resources (ASX:HGO)10.4%45.4%
Biome Australia (ASX:BIO)34.5%114.4%
Liontown Resources (ASX:LTR)16.4%52.2%
CardieX (ASX:CDX)12.2%115.3%
Argosy Minerals (ASX:AGY)14.5%129.6%

Click here to see the full list of 89 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Cettire (ASX:CTT)

Simply Wall St Growth Rating: ★★★★★★

Overview: Cettire Limited operates as an online retailer of luxury goods, serving customers in Australia, the United States, and other international markets, with a market capitalization of approximately A$517.05 million.

Operations: The company generates its revenue primarily through online retail sales, totaling approximately A$582.79 million.

Insider Ownership: 28.7%

Revenue Growth Forecast: 23.6% p.a.

Cettire, an Australian growth company with high insider ownership, recently presented at the Bell Potter Emerging Leaders Conference. The company became profitable this year and is trading at A$73.3% below the estimated fair value. Despite a highly volatile share price in recent months, Cettire's earnings are expected to grow by 26.7% per year, outpacing the Australian market's 13%. Revenue growth is also projected to exceed market averages significantly at 23.6% annually.

ASX:CTT Earnings and Revenue Growth as at Jul 2024
ASX:CTT Earnings and Revenue Growth as at Jul 2024

IPD Group (ASX:IPG)

Simply Wall St Growth Rating: ★★★★★☆

Overview: IPD Group Limited, operating in Australia, specializes in the distribution of electrical equipment and has a market capitalization of approximately A$485.89 million.

Operations: The company generates revenue through its Products Division, which brought in A$215.98 million, and its Services Division, which contributed A$20.79 million.

Insider Ownership: 28.1%

Revenue Growth Forecast: 23.6% p.a.

IPD Group, an Australian growth company with significant insider ownership, is poised for robust expansion with earnings expected to increase by 25.9% annually, outstripping the market's 13%. Revenue is also set to rise significantly at 23.6% per year. Despite these strengths, concerns include a forecasted low return on equity of 19% in three years and recent shareholder dilution. The stock currently trades at A$14.6% below its fair value estimate, suggesting potential undervaluation.

ASX:IPG Ownership Breakdown as at Jul 2024
ASX:IPG Ownership Breakdown as at Jul 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$560.79 million.

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

Insider Ownership: 15.8%

Revenue Growth Forecast: 76.2% p.a.

IperionX, an emerging Australian company with high insider ownership, shows promising growth prospects. The firm is expected to shift into profitability within the next three years, with revenue forecasted to expand by 76.2% annually—significantly outpacing the broader market's 5.3%. Recent strategic partnerships in the U.S., focusing on advanced titanium products for defense and technology sectors, underscore its potential. However, shareholder dilution over the past year and a current valuation at 82.9% below estimated fair value present challenges.

ASX:IPX Ownership Breakdown as at Jul 2024
ASX:IPX Ownership Breakdown as at Jul 2024

Summing It All Up

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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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