Stock Analysis

ASX Growth Companies Insiders Are Backing

ASX:LTR
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As the ASX200 remains steady at 8,210 points amid anticipation of the September quarter CPI data and upcoming United States election, sectors like IT and Discretionary have shown resilience with notable gains. In this environment of cautious optimism, growth companies with high insider ownership can be appealing to investors seeking alignment between management interests and shareholder value.

Top 10 Growth Companies With High Insider Ownership In Australia

NameInsider OwnershipEarnings Growth
Genmin (ASX:GEN)12.3%117.7%
AVA Risk Group (ASX:AVA)15.7%118.8%
Catalyst Metals (ASX:CYL)14.8%33.1%
IperionX (ASX:IPX)17.1%84.9%
Hillgrove Resources (ASX:HGO)10.4%67.4%
Acrux (ASX:ACR)17.4%91.6%
Findi (ASX:FND)35.8%64.8%
Pointerra (ASX:3DP)20.1%126.4%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%

Click here to see the full list of 98 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Aussie Broadband (ASX:ABB)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Aussie Broadband Limited offers telecommunications and technology services in Australia, with a market cap of A$1.15 billion.

Operations: The company's revenue is primarily derived from its Residential segment at A$585.07 million, followed by Wholesale at A$159.73 million, Business at A$96.97 million, Enterprise and Government at A$88.04 million, and Symbio Group contributing A$69.93 million.

Insider Ownership: 11.3%

Aussie Broadband showcases robust growth potential, with earnings expected to increase significantly over the next three years, outpacing the Australian market. The company reported revenue nearing A$1 billion and net income of A$26.38 million for fiscal 2024. Despite being undervalued by 42.2% against its fair value estimate, insider ownership remains strong without recent significant trading activity. However, shareholders experienced dilution last year and Return on Equity is forecasted to remain modest at 11.4%.

ASX:ABB Earnings and Revenue Growth as at Oct 2024
ASX:ABB Earnings and Revenue Growth as at Oct 2024

Guzman y Gomez (ASX:GYG)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guzman y Gomez Limited owns, operates, and franchises quick service restaurants in Australia, Singapore, Japan, and the United States with a market cap of A$4.05 billion.

Operations: The company's revenue comes from its quick service restaurant operations, generating A$364.99 million.

Insider Ownership: 13%

Guzman y Gomez demonstrates promising growth potential, with revenue forecasted to grow at 17.8% annually, outpacing the broader Australian market. Recent index inclusions signal increased investor interest despite a net loss of A$13.75 million for fiscal 2024 and a basic loss per share of A$0.161. The company is expected to achieve profitability within three years, although Return on Equity is projected to be relatively low at 11.6%. Insider ownership remains strong without recent substantial trading activity.

ASX:GYG Ownership Breakdown as at Oct 2024
ASX:GYG 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 capitalization of A$2.16 billion.

Operations: Liontown Resources Limited's revenue segments are not specified in the provided text.

Insider Ownership: 14.7%

Liontown Resources is positioned for significant revenue growth, with forecasts indicating a 40.4% annual increase, surpassing the broader Australian market's growth rate. Despite reporting a net loss of A$64.92 million for fiscal 2024, the company is expected to achieve profitability within three years. Recent leadership changes enhance corporate governance, while insider ownership remains stable with no substantial trading activity noted recently. The stock trades significantly below its estimated fair value, suggesting potential upside.

ASX:LTR Ownership Breakdown as at Oct 2024
ASX:LTR 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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