Insiders Back 3 Prominent Growth Companies

As U.S. markets experience a surge in optimism due to potential resolutions to the government shutdown, major indexes like the Nasdaq, S&P 500, and Dow Jones Industrial Average have seen notable gains. In such an environment, growth companies with high insider ownership often attract attention as they can signal confidence from those closest to the business operations and strategic direction.

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

Click here to see the full list of 186 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Futu Holdings (FUTU)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of $26.14 billion.

Operations: The company generates revenue primarily from its online brokerage services and margin financing services, totaling HK$16.10 billion.

Insider Ownership: 36.3%

Revenue Growth Forecast: 15.3% p.a.

Futu Holdings has demonstrated strong financial performance with recent earnings showing substantial growth, as net income nearly doubled year-over-year. Its revenue is projected to grow at 15.3% annually, outpacing the broader US market's expected growth rate of 10.5%. While insider trading activity over the past three months is not substantial, Futu's high return on equity forecast and faster-than-market earnings growth suggest robust potential for investors interested in companies with significant insider ownership.

• Unlock comprehensive insights into our analysis of Futu Holdings stock in this growth report.
• Our expertly prepared valuation report Futu Holdings implies its share price may be too high.

Li Auto (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 $20.37 billion.

Operations: The company generates revenue of CN¥143.32 billion from its auto manufacturing segment in the energy vehicle market in China.

Insider Ownership: 33.3%

Revenue Growth Forecast: 15.7% p.a.

Li Auto is trading at a significant discount to its estimated fair value, with earnings growth forecasted at 24.8% annually, surpassing the US market's average. Despite slower revenue growth projections of 15.7% per year, recent vehicle delivery numbers indicate solid operational performance. However, the company faces challenges such as being dropped from major indices and a decline in expected quarterly deliveries and revenues compared to last year, impacting its growth narrative amidst high insider ownership.

• Dive into the specifics of Li Auto here with our thorough growth forecast report.
• In light of our recent valuation report, it seems possible that Li Auto is trading behind its estimated value.

Spotify Technology (SPOT)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Spotify Technology S.A., along with its subsidiaries, offers audio streaming subscription services globally and has a market cap of approximately $131.81 billion.

Operations: The company generates revenue through its Premium segment, which accounts for €15.04 billion, and its Ad-Supported segment, contributing €1.86 billion.

Insider Ownership: 16.1%

Revenue Growth Forecast: 11.9% p.a.

Spotify Technology is experiencing robust earnings growth, forecasted at 27.7% annually, outpacing the US market average. Recent results show substantial increases in net income and earnings per share, reflecting strong operational performance. Despite slower revenue growth projections of 11.9% annually, Spotify's strategic alliances with major music groups aim to responsibly integrate AI technology. However, legal challenges regarding streaming fraud present potential risks. Insider ownership remains high without significant recent insider trading activity noted.

• Delve into the full analysis future growth report here for a deeper understanding of Spotify Technology.
• The valuation report we've compiled suggests that Spotify Technology's current price could be inflated.

Next Steps

• Take a closer look at our Fast Growing US Companies With High Insider Ownership list of 186 companies by clicking here.
• Looking For Alternative Opportunities? This technology could replace computers: discover the 27 stocks are working to make quantum computing a reality.

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.

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