Stock Analysis

Three ASX Growth Companies With High Insider Ownership And Earnings Growth Up To 120%

ASX:MSB
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Amidst a mixed performance in the Australian market, with sectors like IT and Energy facing downturns while Telecommunications showed resilience, investors continue to navigate through a landscape marked by fluctuating commodity prices and economic data. In such an environment, growth companies with high insider ownership can offer unique investment opportunities as these insiders often have a vested interest in the company's success, aligning their goals closely with those of shareholders.

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%30.1%
Gratifii (ASX:GTI)17%112.4%
Acrux (ASX:ACR)14.6%115.3%
Doctor Care Anywhere Group (ASX:DOC)28.4%96.4%
Plenti Group (ASX:PLT)12.8%106.4%
Hillgrove Resources (ASX:HGO)10.4%45.4%
Change Financial (ASX:CCA)26.6%85.4%
Botanix Pharmaceuticals (ASX:BOT)11.4%120.9%
Liontown Resources (ASX:LTR)16.4%63.9%

Click here to see the full list of 91 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

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

Botanix Pharmaceuticals (ASX:BOT)

Simply Wall St Growth Rating: ★★★★★★

Overview: Botanix Pharmaceuticals Limited is an Australian company focused on the research and development of dermatology and antimicrobial products, with a market capitalization of approximately A$519.80 million.

Operations: The company generates revenue primarily from its activities in developing dermatology and antimicrobial products, totaling A$0.44 million.

Insider Ownership: 11.4%

Earnings Growth Forecast: 120.9% p.a.

Botanix Pharmaceuticals, while demonstrating robust projected growth with earnings expected to increase significantly and revenue forecasted to grow at 120.4% per year, faces challenges due to a short cash runway and recent shareholder dilution. Despite these concerns, the company is anticipated to become profitable within three years and boasts a very high projected Return on Equity of 43.9%. Moreover, Botanix recently detailed its commercial launch strategies for SofdraÔ as it approaches regulatory approval.

ASX:BOT Earnings and Revenue Growth as at Jun 2024
ASX:BOT Earnings and Revenue Growth as at Jun 2024

Mesoblast (ASX:MSB)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Mesoblast Limited, operating in Australia, the United States, Singapore, and Switzerland, focuses on developing regenerative medicine products with a market capitalization of approximately A$1.24 billion.

Operations: The company generates revenue primarily from its development of adult stem cell technology platform, totaling A$7.47 million.

Insider Ownership: 22.2%

Earnings Growth Forecast: 56.7% p.a.

Mesoblast Limited, an Australian biotech firm, has seen significant insider buying in the last three months and no substantial selling, indicating strong internal confidence. The company is trading at a substantial discount to estimated fair value and is expected to become profitable within three years with forecasted earnings growth of 56.65% per year. Despite its high share price volatility and recent shareholder dilution, Mesoblast's revenue growth projections outpace the Australian market significantly at 55.3% annually. Recent leadership changes and positive regulatory interactions suggest strategic alignment for upcoming challenges.

ASX:MSB Earnings and Revenue Growth as at Jun 2024
ASX:MSB Earnings and Revenue Growth as at Jun 2024

SiteMinder (ASX:SDR)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SiteMinder Limited is a company that develops, markets, and sells online guest acquisition platforms and commerce solutions for accommodation providers both in Australia and globally, with a market capitalization of approximately A$1.34 billion.

Operations: The company generates revenue primarily through its software and programming segment, amounting to A$171.70 million.

Insider Ownership: 11.3%

Earnings Growth Forecast: 72.7% p.a.

SiteMinder, an Australian growth company with high insider ownership, is currently undervalued by 45.4% against its fair value. With no significant insider trading in the past three months, its financial outlook remains robust, forecasting a return to profitability within three years alongside a strong annual profit growth above market average. Earnings have increased by 14.9% annually over the past five years and are expected to surge by 72.7% annually moving forward. Recently, SiteMinder formed a strategic partnership with Cloudbeds to enhance platform connectivity and revenue opportunities for hoteliers globally.

ASX:SDR Ownership Breakdown as at Jun 2024
ASX:SDR Ownership Breakdown as at Jun 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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