3 ASX Growth Companies With Up To 18% Insider Ownership

The ASX200 closed up 0.1% at 8,212 points, with the Materials sector leading gains amid rising commodity prices driven by China's latest stimulus announcement. As investors shift away from banks, growth companies with high insider ownership are increasingly catching the eye due to their potential for strong performance in a fluctuating market. In this article, we explore three ASX-listed growth companies that boast up to 18% insider ownership, highlighting how this significant stake can align management's interests with those of shareholders and potentially drive long-term value.

Top 10 Growth Companies With High Insider Ownership In Australia

Name	Insider Ownership	Earnings Growth
Clinuvel Pharmaceuticals (ASX:CUV)	10.4%	27.4%
Catalyst Metals (ASX:CYL)	17%	54.5%
Genmin (ASX:GEN)	12%	117.7%
Hillgrove Resources (ASX:HGO)	10.4%	70.9%
AVA Risk Group (ASX:AVA)	15.7%	118.8%
Pointerra (ASX:3DP)	18.7%	126.4%
Liontown Resources (ASX:LTR)	16.4%	81.1%
Acrux (ASX:ACR)	17.4%	91.6%
Adveritas (ASX:AV1)	21.1%	144.2%
Plenti Group (ASX:PLT)	12.8%	106.4%

Click here to see the full list of 102 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Lotus Resources (ASX:LOT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lotus Resources Limited is involved in the exploration, evaluation, and development of uranium properties in Africa with a market cap of A$504.19 million.

Operations: The company's revenue segments are not specified in the provided text.

Insider Ownership: 10.4%

Lotus Resources Limited, despite recent management restructuring and a significant net loss of A$24.51 million for FY2024, is forecast to achieve high annual profit growth over the next three years. The company’s return on equity is projected to be very high at 64.5%. However, Lotus makes minimal revenue (A$21K) and was recently dropped from the S&P/ASX Emerging Companies Index. High insider ownership suggests strong internal confidence in its future potential.

• Click to explore a detailed breakdown of our findings in Lotus Resources' earnings growth report.
• In light of our recent valuation report, it seems possible that Lotus Resources is trading beyond its estimated value.

Mineral Resources (ASX:MIN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mineral Resources Limited, with a market cap of A$9.58 billion, operates as a mining services company in Australia, Asia, and internationally through its subsidiaries.

Operations: Revenue segments for Mineral Resources Limited include Energy (A$16 million), Lithium (A$1.41 billion), Iron Ore (A$2.58 billion), and Mining Services (A$3.38 billion).

Insider Ownership: 11.7%

Mineral Resources Limited reported sales of A$5.28 billion for the year ending June 30, 2024, up from A$4.78 billion the previous year, though net income decreased to A$125 million from A$243 million. Despite lower profit margins and earnings per share compared to last year, the company's revenue is forecast to grow faster than the Australian market at 7.1% annually. Insiders have shown confidence with more shares bought than sold recently, although not in substantial volumes.

• Delve into the full analysis future growth report here for a deeper understanding of Mineral Resources.
• Our valuation report here indicates Mineral Resources may be overvalued.

Santana Minerals (ASX:SMI)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Santana Minerals Limited explores and evaluates gold, silver, and base metal properties in New Zealand, Cambodia, and Mexico with a market cap of A$486.02 million.

Operations: Revenue Segments (in millions of A$): null

Insider Ownership: 18.3%

Santana Minerals Limited, a growth company with high insider ownership, reported a net loss of A$2.59 million for the year ending June 30, 2024, an improvement from the previous year's A$6.87 million loss. The company is focusing on upgrading its resource estimates at various prospects through extensive drilling programs yielding encouraging results. While Santana has no revenue forecast for next year and shareholders experienced dilution over the past year, earnings are expected to grow significantly by 71.37% annually over the next three years.

• Navigate through the intricacies of Santana Minerals with our comprehensive analyst estimates report here.
• Our valuation report unveils the possibility Santana Minerals' shares may be trading at a premium.

Where To Now?

• Get an in-depth perspective on all 102 Fast Growing ASX Companies With High Insider Ownership by using our screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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