Stock Analysis

3 US Growth Companies With Strong Insider Confidence

NasdaqGS:VCTR
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As the U.S. stock market experiences a sluggish stretch following a significant post-election rally, investors are closely monitoring Federal Reserve Chair Jerome Powell's comments on the "sometimes-bumpy path" to achieving inflation targets. In this environment, growth companies with high insider ownership can signal strong confidence from those who know the business best, offering potential resilience amidst market fluctuations.

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

NameInsider OwnershipEarnings Growth
Victory Capital Holdings (NasdaqGS:VCTR)10.2%31.5%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%23.5%
New Fortress Energy (NasdaqGS:NFE)32.6%83%
Duolingo (NasdaqGS:DUOL)14.6%41.3%
On Holding (NYSE:ONON)31%29.8%
Alkami Technology (NasdaqGS:ALKT)11.2%98.6%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Credit Acceptance (NasdaqGS:CACC)14.1%50%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
BBB Foods (NYSE:TBBB)22.9%51.2%

Click here to see the full list of 198 stocks from our Fast Growing US Companies With High Insider Ownership screener.

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

ChromaDex (NasdaqCM:CDXC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ChromaDex Corporation is a bioscience company that develops healthy aging products and has a market cap of approximately $536.62 million.

Operations: The company generates revenue through three main segments: Ingredients ($16.95 million), Consumer Products ($71.72 million), and Analytical Reference Standards and Services ($3.00 million).

Insider Ownership: 30.5%

ChromaDex is experiencing significant earnings growth, projected at 81.8% annually, outpacing the US market's average. Recent profitability marks a positive shift, with Q3 2024 net income reaching US$1.88 million from a prior loss. The nationwide launch of Niagen® IV enhances its market presence in wellness products. However, its share price remains volatile and lacks recent insider trading activity. Revenue is expected to grow by approximately 15% year-over-year in 2024.

NasdaqCM:CDXC Earnings and Revenue Growth as at Nov 2024
NasdaqCM:CDXC Earnings and Revenue Growth as at Nov 2024

Victory Capital Holdings (NasdaqGS:VCTR)

Simply Wall St Growth Rating: ★★★★★★

Overview: Victory Capital Holdings, Inc. operates as an asset management company both in the United States and internationally, with a market cap of approximately $4.12 billion.

Operations: The company generates revenue of $866.90 million from offering investment management services and products.

Insider Ownership: 10.2%

Victory Capital Holdings shows strong growth potential with revenue expected to increase by 26.7% annually, surpassing the market average. Recent earnings reports highlight significant improvements, with Q3 net income rising to US$81.98 million from US$52.01 million a year ago, and earnings per share increasing accordingly. Despite a high debt level, the stock trades at a good value relative to peers and industry standards, while insider ownership remains substantial without recent trading activity reported.

NasdaqGS:VCTR Ownership Breakdown as at Nov 2024
NasdaqGS:VCTR Ownership Breakdown as at Nov 2024

Toast (NYSE:TOST)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India with a market cap of approximately $22.67 billion.

Operations: Toast's revenue segment includes Data Processing, which generated $4.66 billion.

Insider Ownership: 20.4%

Toast, Inc. demonstrates robust growth potential with earnings forecasted to increase 57.01% annually, surpassing market averages. Recent Q3 results show a revenue rise to US$1.31 billion and a net income of US$56 million from a previous loss, indicating strong financial recovery. Despite not having substantial recent insider trading activity, the company completed significant share buybacks worth US$56.08 million, reflecting confidence in its ongoing expansion and profitability trajectory.

NYSE:TOST Ownership Breakdown as at Nov 2024
NYSE:TOST Ownership Breakdown as at Nov 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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