Stock Analysis

3 US Growth Companies With High Insider Ownership To Watch

NasdaqGS:VNET
Source: Shutterstock

As the U.S. stock market experiences mixed performance amid a wave of earnings reports, with the Nasdaq Composite continuing its upward trajectory, investors are closely watching for opportunities in growth companies where insider ownership is significant. In times of fluctuating market conditions, stocks with high insider ownership can be appealing as they often indicate that company leaders have confidence in their business's long-term potential and are aligned with shareholder interests.

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

NameInsider OwnershipEarnings Growth
Atlas Energy Solutions (NYSE:AESI)29.1%41.9%
GigaCloud Technology (NasdaqGM:GCT)25.6%26%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%23.4%
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%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Carlyle Group (NasdaqGS:CG)29.5%22%
BBB Foods (NYSE:TBBB)22.9%51.2%

Click here to see the full list of 184 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Byrna Technologies (NasdaqCM:BYRN)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Byrna Technologies Inc. is a company that develops, manufactures, and sells less-lethal personal security solutions across multiple regions including the United States, South Africa, Europe, South America, Asia, and Canada with a market cap of $364.20 million.

Operations: The company's revenue primarily comes from its Aerospace & Defense segment, which generated $73.42 million.

Insider Ownership: 20.9%

Revenue Growth Forecast: 22.4% p.a.

Byrna Technologies, a growth-focused company with significant insider ownership, has shown promising financial performance. It recently became profitable, reporting Q3 2024 sales of US$20.85 million compared to US$7.09 million the previous year and net income of US$1.03 million from a prior loss. Earnings are forecast to grow significantly at 43.4% annually over three years, outpacing the market average. Despite recent share price volatility and past shareholder dilution, insiders have been buying shares modestly without substantial selling activity.

NasdaqCM:BYRN Earnings and Revenue Growth as at Oct 2024
NasdaqCM:BYRN Earnings and Revenue Growth as at Oct 2024

LendingTree (NasdaqGS:TREE)

Simply Wall St Growth Rating: ★★★★★☆

Overview: LendingTree, Inc. operates an online consumer platform in the United States and has a market cap of approximately $756.53 million.

Operations: The company's revenue segments include $121.12 million from Home, $224.11 million from Consumer, and $322.07 million from Insurance.

Insider Ownership: 18%

Revenue Growth Forecast: 12.1% p.a.

LendingTree has experienced significant insider buying over the past three months, despite some recent shareholder dilution. The company's earnings have improved, with a Q2 2024 net income of US$7.75 million compared to a prior loss, and sales rising to US$210.14 million from US$182.45 million year-over-year. Forecasts suggest LendingTree will achieve profitability within three years, with an above-market profit growth rate and revenue growth outpacing the broader U.S. market at 12.1% annually.

NasdaqGS:TREE Earnings and Revenue Growth as at Oct 2024
NasdaqGS:TREE Earnings and Revenue Growth as at Oct 2024

VNET Group (NasdaqGS:VNET)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: VNET Group, Inc. is an investment holding company that offers hosting and related services in China, with a market cap of approximately $934.38 million.

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

Insider Ownership: 12.7%

Revenue Growth Forecast: 10.5% p.a.

VNET Group is forecast to achieve profitability within three years, with expected earnings growth of 85.12% annually, surpassing market averages. Despite recent shareholder dilution and a volatile share price, VNET trades at a significant discount to its estimated fair value. Revenue growth is projected at 10.5% per year, outpacing the U.S. market rate of 8.8%. The company recently reaffirmed its financial guidance for 2024 amidst board changes involving seasoned tech executive David Lifeng Chen.

NasdaqGS:VNET Earnings and Revenue Growth as at Oct 2024
NasdaqGS:VNET Earnings and Revenue Growth as at Oct 2024

Next Steps

Looking For Alternative Opportunities?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com