Stock Analysis

US Stocks With High Insider Ownership Boasting Up To 116% Earnings Growth

NYSE:WRBY
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As the U.S. stock market navigates a landscape marked by rising Treasury yields and fluctuating oil prices, investors are recalibrating their expectations amid shifting economic signals. In this environment, companies with high insider ownership and robust earnings growth can offer a compelling proposition, as they often indicate strong internal confidence and potential resilience against market volatility.

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

NameInsider OwnershipEarnings Growth
GigaCloud Technology (NasdaqGM:GCT)25.7%24.3%
Victory Capital Holdings (NasdaqGS:VCTR)10.2%32.2%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
Super Micro Computer (NasdaqGS:SMCI)25.7%28.0%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%23.2%
Hims & Hers Health (NYSE:HIMS)13.8%41.3%
Credo Technology Group Holding (NasdaqGS:CRDO)14.0%95%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
BBB Foods (NYSE:TBBB)22.9%51.2%
Carlyle Group (NasdaqGS:CG)29.5%22%

Click here to see the full list of 183 stocks from our Fast Growing US Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

Vivid Seats (NasdaqGS:SEAT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan with a market cap of approximately $738.70 million.

Operations: The company's revenue is primarily generated from its Marketplace segment, which accounts for $651.72 million, and its Resale segment, contributing $123.89 million.

Insider Ownership: 10.2%

Earnings Growth Forecast: 20.3% p.a.

Vivid Seats, a growth company with substantial insider ownership, is trading at 70.2% below its estimated fair value and offers good relative value compared to peers. Despite a significant expected annual earnings growth of over 20%, recent profit margins have declined from last year. The company recently announced an exclusive media partnership with I Am Athlete, enhancing its brand visibility and fan engagement through interactive experiences and content creation, potentially driving future revenue streams.

NasdaqGS:SEAT Ownership Breakdown as at Oct 2024
NasdaqGS:SEAT Ownership Breakdown as at Oct 2024

RH (NYSE:RH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: RH, along with its subsidiaries, operates as a retailer in the home furnishings market with a market capitalization of approximately $6.15 billion.

Operations: The company's revenue segments include Waterworks, contributing $196.56 million, and Restoration Hardware (RH), generating $2.85 billion.

Insider Ownership: 17%

Earnings Growth Forecast: 73.3% p.a.

RH, demonstrating substantial insider ownership, is trading at 14.2% below its estimated fair value. Despite a forecasted 73.34% annual earnings growth outpacing the US market, recent financials show declining profit margins and net income compared to last year. The company reported Q2 sales of US$829.66 million but faced reduced earnings per share from continuing operations. While insiders have been more active in selling shares recently, RH's return on equity is expected to be very high in three years.

NYSE:RH Ownership Breakdown as at Oct 2024
NYSE:RH Ownership Breakdown as at Oct 2024

Warby Parker (NYSE:WRBY)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Warby Parker Inc. operates by providing eyewear products in the United States and Canada, with a market cap of approximately $1.93 billion.

Operations: The company generates revenue from its Medical - Optical Supplies segment, amounting to $719.93 million.

Insider Ownership: 19.3%

Earnings Growth Forecast: 116.2% p.a.

Warby Parker, with significant insider buying recently, is poised for profitability within three years, surpassing average market growth. Its revenue is projected to grow at 11.4% annually, outpacing the US market's 8.7%. Despite past shareholder dilution and a forecasted low return on equity of 11%, earnings are expected to increase significantly by 116.18% annually. Recent board changes include Gabrielle Sulzberger's resignation and Teresa Briggs' reclassification to balance director terms.

NYSE:WRBY Earnings and Revenue Growth as at Oct 2024
NYSE:WRBY Earnings and Revenue Growth as at Oct 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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