Stock Analysis

3 US Growth Companies With Up To 38% Insider Ownership

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As the U.S. stock market experiences a week of heightened activity with major earnings reports and economic data releases, investors are closely watching how these developments impact overall market performance. In this context, growth companies with significant insider ownership can be particularly appealing, as such ownership often signals confidence in the company's future prospects and alignment of interests between insiders and shareholders.

Top 10 Growth Companies With High Insider Ownership In The United States

NameInsider OwnershipEarnings Growth
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%23.4%
GigaCloud Technology (NasdaqGM:GCT)25.6%26%
Victory Capital Holdings (NasdaqGS:VCTR)10.2%33.3%
Super Micro Computer (NasdaqGS:SMCI)25.7%28.7%
Hims & Hers Health (NYSE:HIMS)13.7%37.4%
Duolingo (NasdaqGS:DUOL)14.7%41.7%
Bridge Investment Group Holdings (NYSE:BRDG)11.3%102.3%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
BBB Foods (NYSE:TBBB)22.9%51.2%

Click here to see the full list of 188 stocks from our Fast Growing US Companies With High Insider Ownership screener.

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

AppLovin (NasdaqGS:APP)

Simply Wall St Growth Rating: ★★★★★☆

Overview: AppLovin Corporation develops a software-based platform to improve marketing and monetization for advertisers globally, with a market cap of approximately $54.02 billion.

Operations: The company's revenue is derived from two main segments: Apps, generating $1.49 billion, and Software Platform, contributing $2.47 billion.

Insider Ownership: 38.3%

AppLovin has demonstrated impressive financial growth, with earnings increasing significantly over the past year. The company's earnings are forecast to grow at 25.2% annually, outpacing the US market average of 15.1%. Despite high debt levels, AppLovin's revenue is expected to grow faster than the broader US market at 13.7% annually. Recently added to the FTSE All-World Index, AppLovin reported strong second-quarter results with sales reaching US$1.08 billion and net income climbing to US$309.97 million from a year ago.

NasdaqGS:APP Ownership Breakdown as at Oct 2024

Li Auto (NasdaqGS:LI)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Li Auto Inc. operates in the energy vehicle market in the People’s Republic of China with a market cap of approximately $28.72 billion.

Operations: The company generates revenue primarily from its Auto Manufacturers segment, amounting to CN¥133.72 billion.

Insider Ownership: 30.4%

Li Auto showcases substantial growth potential, with earnings projected to rise by 23.24% annually, outpacing the US market's average. Despite a volatile share price and low forecasted return on equity of 18.3%, the company trades at 16% below its estimated fair value. Recent sales figures highlight robust performance, with vehicle deliveries increasing significantly year-over-year. Li Auto's expanding retail and service network in China underscores its strategic positioning in the new energy auto sector.

NasdaqGS:LI Earnings and Revenue Growth as at Oct 2024

Endeavor Group Holdings (NYSE:EDR)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Endeavor Group Holdings, Inc. is a sports and entertainment company with operations in the United States, the United Kingdom, and internationally, and has a market cap of approximately $13.52 billion.

Operations: The company's revenue segments include Representation at $1.57 billion, Owned Sports Properties at $2.70 billion, and Events, Experiences & Rights at approximately $2.00 billion.

Insider Ownership: 20.2%

Endeavor Group Holdings is positioned for significant earnings growth, forecasted at 41% annually over the next three years, exceeding US market expectations. Despite recent financial challenges, including a net loss in the latest quarter, it trades at a substantial discount to its estimated fair value. The company is exploring strategic divestitures of key events from its IMG portfolio amid Silver Lake's privatization deal. However, revenue growth projections remain modest compared to broader industry trends.

NYSE:EDR 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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