Stock Analysis

3 US Growth Companies With Insiders Owning Stocks Growing Earnings Over 166%

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As the S&P 500 and Dow Jones Industrial Average reach record highs following the Federal Reserve's recent rate cuts, investors are increasingly looking for opportunities in growth companies with strong insider ownership. In this favorable market environment, stocks with high insider ownership and impressive earnings growth can offer significant potential for robust returns.

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

NameInsider OwnershipEarnings Growth
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%23.2%
GigaCloud Technology (NasdaqGM:GCT)25.7%24.3%
Victory Capital Holdings (NasdaqGS:VCTR)10.2%32.3%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
Super Micro Computer (NasdaqGS:SMCI)25.7%28.0%
Hims & Hers Health (NYSE:HIMS)13.7%40.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.1%95%
EHang Holdings (NasdaqGM:EH)32.8%81.5%
BBB Foods (NYSE:TBBB)22.9%51.2%
Carlyle Group (NasdaqGS:CG)29.5%22%

Click here to see the full list of 178 stocks from our Fast Growing US Companies With High Insider Ownership screener.

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

Burke & Herbert Financial Services (NasdaqCM:BHRB)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Burke & Herbert Financial Services Corp., with a market cap of $974.56 million, operates as the bank holding company for Burke & Herbert Bank & Trust Company, offering community banking products and services in Virginia and Maryland.

Operations: The company's revenue segment includes community banking, generating $124.67 million.

Insider Ownership: 12.4%

Earnings Growth Forecast: 166.3% p.a.

Burke & Herbert Financial Services is forecast to grow earnings by 166.3% annually, with revenue expected to increase by 57% per year, outpacing the US market's growth. Despite substantial shareholder dilution in the past year and a net loss of US$16.92 million in Q2 2024, insiders have been buying more shares recently. The company trades at 24.4% below estimated fair value and is projected to become profitable within three years.

NasdaqCM:BHRB Earnings and Revenue Growth as at Sep 2024

VNET Group (NasdaqGS:VNET)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: VNET Group, Inc., an investment holding company with a market cap of $800.90 million, provides hosting and related services in China.

Operations: The company's revenue segment includes Hosting and Related Services, which generated CN¥7.68 billion.

Insider Ownership: 12.7%

Earnings Growth Forecast: 87.5% p.a.

VNET Group, Inc. is trading at 79.2% below its estimated fair value, with revenue expected to grow at 10.4% annually, outpacing the US market's growth rate of 8.7%. Despite substantial shareholder dilution over the past year and a volatile share price recently, VNET is forecast to become profitable within three years and has appointed a new independent director with extensive tech industry experience. Revenue guidance for 2024 projects growth between 5.2% and 7.9%.

NasdaqGS:VNET Ownership Breakdown as at Sep 2024

Squarespace (NYSE:SQSP)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Squarespace, Inc. (NYSE:SQSP) operates a platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the internet in the United States and internationally, with a market cap of approximately $6.45 billion.

Operations: Squarespace generates revenue primarily from its Internet Software & Services segment, amounting to $1.11 billion.

Insider Ownership: 32.6%

Earnings Growth Forecast: 46.6% p.a.

Squarespace, Inc. has seen earnings grow 36.5% annually over the past five years and its revenue is forecast to grow at 12.8% per year, faster than the US market's average of 8.7%. Despite recent shareholder dilution and significant insider selling, the company is expected to become profitable within three years. Recent investor activism challenges a proposed take-private transaction by Permira Advisers at $44 per share, citing undervaluation concerns amidst strong operational results.

NYSE:SQSP Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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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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