Stock Analysis

3 US Growth Stocks With Up To 36% Insider Ownership

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As U.S. stock indexes experience notable declines, driven by a downturn in tech and chip stocks, investors are seeking stability amidst market volatility. In such an environment, growth companies with substantial insider ownership can offer a unique advantage, suggesting strong internal confidence and alignment 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%42.1%
GigaCloud Technology (NasdaqGM:GCT)25.7%24.3%
Victory Capital Holdings (NasdaqGS:VCTR)10.2%32.3%
Hims & Hers Health (NYSE:HIMS)13.7%40.7%
Super Micro Computer (NasdaqGS:SMCI)25.7%27.1%
On Holding (NYSE:ONON)28.4%24.4%
Credo Technology Group Holding (NasdaqGS:CRDO)14.1%60.9%
BBB Foods (NYSE:TBBB)22.9%66.5%
Carlyle Group (NasdaqGS:CG)29.5%22%
EHang Holdings (NasdaqGM:EH)32.8%78.8%

Click here to see the full list of 180 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Paylocity Holding (NasdaqGS:PCTY)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for the U.S. workforce, with a market cap of approximately $8.97 billion.

Operations: Paylocity generates $1.40 billion in revenue from its cloud-based software solutions for human capital management and payroll.

Insider Ownership: 21.1%

Paylocity Holding has demonstrated robust financial performance, with annual revenue growing to US$1.40 billion and net income reaching US$206.77 million in fiscal 2024. Recent product innovations, including Benefits Decision Support and AI enhancements, have bolstered its comprehensive HCM platform. Insider ownership remains high, reflecting confidence in the company's growth prospects. The recent appointment of Steven R. Beauchamp as Executive Chairman and a completed share buyback program underscore strong internal support and strategic focus on shareholder value.

NasdaqGS:PCTY Ownership Breakdown as at Sep 2024

PDD Holdings (NasdaqGS:PDD)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PDD Holdings Inc., a multinational commerce group with a market cap of $133.47 billion, owns and operates a diverse portfolio of businesses.

Operations: The company generates revenue primarily from its Internet Software & Services segment, which amounted to CN¥341.59 billion.

Insider Ownership: 32.1%

PDD Holdings has shown impressive financial growth, with second-quarter sales reaching CNY 97.06 billion and net income at CNY 32.01 billion, both significantly up from the previous year. Despite legal challenges involving allegations of false statements and malware issues, insider ownership remains high, indicating confidence in long-term prospects. Revenue is forecast to grow faster than the US market but below significant levels, while earnings are expected to grow at 18.3% annually, surpassing market averages.

NasdaqGS:PDD Ownership Breakdown as at Sep 2024

Altice USA (NYSE:ATUS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Altice USA, Inc., with a market cap of $1.19 billion, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands.

Operations: The company's revenue segments include Cable TV Services, which generated $9.11 billion.

Insider Ownership: 36.8%

Altice USA faces challenges with declining revenue, reporting US$2.24 billion in Q2 2024, down from US$2.32 billion a year ago, and net income dropping to US$15.36 million from US$78.3 million. Despite this, the company's forecasted earnings growth of 45.44% per year and expected profitability within three years indicate potential recovery. Trading at 85.5% below estimated fair value and having high insider ownership may signal confidence in a turnaround despite recent volatility and dilution concerns.

NYSE:ATUS 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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