Stock Analysis

3 ASX Growth Stocks With High Insider Ownership Delivering 32 Percent Return On Equity

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As the ASX200 experiences a slight dip amidst a flat trading day and investors pivot towards gold in response to global economic concerns, the Australian market remains watchful of potential shifts in commodity demands, particularly from China. In this environment of volatility and sector-specific movements, identifying growth companies with high insider ownership can be crucial as these stocks often reflect strong internal confidence and have historically demonstrated resilience and robust returns on equity.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Clinuvel Pharmaceuticals (ASX:CUV)10.4%27.4%
Genmin (ASX:GEN)12%117.7%
Catalyst Metals (ASX:CYL)17%45.8%
AVA Risk Group (ASX:AVA)15.7%118.8%
Liontown Resources (ASX:LTR)14.7%61%
Hillgrove Resources (ASX:HGO)10.4%71.3%
Acrux (ASX:ACR)17.4%91.6%
Pointerra (ASX:3DP)20.1%126.4%
Adveritas (ASX:AV1)21.1%144.2%
Plenti Group (ASX:PLT)12.8%106.4%

Click here to see the full list of 99 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

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

Cettire (ASX:CTT)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally with a market cap of A$865.41 million.

Operations: The company generates revenue primarily through online retail sales, amounting to A$742.26 million.

Insider Ownership: 33.5%

Return On Equity Forecast: 33% (2027 estimate)

Cettire demonstrates strong growth potential with insider ownership trends supporting confidence in its future. The company forecasts revenue growth of 16.1% annually, outpacing the broader Australian market, and expects earnings to grow significantly at 29% per year. Recent executive changes, including Caroline Elliott's appointment as a non-executive director, bolster governance. Despite recent volatility and a decline in profit margins to 1.4%, substantial insider buying signals positive internal sentiment towards Cettire's prospects.

ASX:CTT Ownership Breakdown as at Oct 2024

Liontown Resources (ASX:LTR)

Simply Wall St Growth Rating: ★★★★★★

Overview: Liontown Resources Limited focuses on the exploration, evaluation, and development of mineral properties in Australia with a market cap of A$2.02 billion.

Operations: Liontown Resources Limited does not currently report distinct revenue segments in its financial disclosures.

Insider Ownership: 14.7%

Return On Equity Forecast: 23% (2027 estimate)

Liontown Resources is positioned for substantial growth, with revenue expected to increase by 40.3% annually, surpassing market averages. Despite a net loss of A$64.92 million in the past year and shareholder dilution, its forecasted profitability within three years and high future return on equity (23.1%) highlight potential upside. Recent governance enhancements with Ian Wells' appointment as Lead Independent Director strengthen oversight, while modest insider buying reflects cautious optimism about the company's trajectory.

ASX:LTR Ownership Breakdown as at Oct 2024

Pinnacle Investment Management Group (ASX:PNI)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Pinnacle Investment Management Group Limited is an investment management company based in Australia with a market capitalization of A$3.78 billion.

Operations: The company generates revenue primarily from its Funds Management Operations, totaling A$48.99 million.

Insider Ownership: 31.5%

Return On Equity Forecast: 30% (2027 estimate)

Pinnacle Investment Management Group shows potential for growth, with earnings forecasted to increase by 14.4% annually, outpacing the Australian market's average. Despite modest revenue growth expectations of 13.6%, its high insider ownership aligns management interests with shareholders. Recent financials indicate a net income rise to A$90.35 million, reflecting robust performance. The appointment of Christina Lenard as Director and an increased dividend underscore strategic leadership and shareholder returns focus amidst evolving market dynamics.

ASX:PNI Ownership Breakdown as at Oct 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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