Stock Analysis

High Insider Ownership Growth Stocks On US Exchange For June 2024

NasdaqGM:VRCA
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As the U.S. stock market experiences fluctuations, with recent slips in major indices like the Dow Jones, S&P 500, and Nasdaq from record highs, investors are keenly observing market dynamics and economic indicators such as inflation rates and interest rate expectations. In this context, examining growth companies with high insider ownership might offer valuable insights, as these firms often demonstrate a strong alignment between management's interests and shareholder returns.

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

NameInsider OwnershipEarnings Growth
GigaCloud Technology (NasdaqGM:GCT)25.9%21.3%
PDD Holdings (NasdaqGS:PDD)32.1%23.2%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%21.7%
Duolingo (NasdaqGS:DUOL)15%48%
Super Micro Computer (NasdaqGS:SMCI)14.3%40.2%
Bridge Investment Group Holdings (NYSE:BRDG)11.6%98.2%
Credo Technology Group Holding (NasdaqGS:CRDO)14.7%60.9%
Carlyle Group (NasdaqGS:CG)29.2%23.6%
BBB Foods (NYSE:TBBB)22.9%100.1%
EHang Holdings (NasdaqGM:EH)32.8%74.3%

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

Let's review some notable picks from our screened stocks.

EHang Holdings (NasdaqGM:EH)

Simply Wall St Growth Rating: ★★★★★★

Overview: EHang Holdings Limited is an autonomous aerial vehicle technology platform company operating in the People’s Republic of China, East Asia, West Asia, and Europe with a market cap of approximately $863.22 million.

Operations: The company generates revenue primarily from its Aerospace & Defense segment, which reported CN¥156.95 million in sales.

Insider Ownership: 32.8%

Earnings Growth Forecast: 74.3% p.a.

EHang Holdings is poised for significant growth with expected profitability within three years and forecasted annual earnings growth of 74.31%. Its revenue is anticipated to increase by 37.5% annually, outpacing the US market average. Despite high insider ownership, recent shareholder dilution raises concerns. The company recently enhanced its market presence through strategic agreements in Wencheng for its EH216-S pilotless aircraft, marking a pivotal development in low-altitude economy sectors like tourism and transportation.

NasdaqGM:EH Earnings and Revenue Growth as at Jun 2024
NasdaqGM:EH Earnings and Revenue Growth as at Jun 2024

Verrica Pharmaceuticals (NasdaqGM:VRCA)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Verrica Pharmaceuticals Inc. is a clinical-stage dermatology therapeutics company focused on developing medications for skin diseases in the United States, with a market capitalization of approximately $299.06 million.

Operations: The company's revenue from its pharmaceuticals segment is approximately $8.91 million.

Insider Ownership: 38.3%

Earnings Growth Forecast: 63.6% p.a.

Verrica Pharmaceuticals, despite a significant net loss of US$20.33 million in Q1 2024, is actively expanding its pipeline with strategic amendments to licensing agreements for global clinical trials. The company's collaboration with Torii Pharmaceutical aims to address the large unmet need in dermatology for common warts—a potential multibillion-dollar market. With insider ownership fostering aligned interests and a revenue growth forecast at 49.8% per year, Verrica is positioning itself strategically amidst financial challenges.

NasdaqGM:VRCA Earnings and Revenue Growth as at Jun 2024
NasdaqGM:VRCA Earnings and Revenue Growth as at Jun 2024

Hesai Group (NasdaqGS:HSAI)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hesai Group operates globally, developing, manufacturing, and selling three-dimensional LiDAR solutions, with a market capitalization of approximately $554.53 million.

Operations: The company generates revenue from the development, manufacture, and sale of LiDAR solutions across Mainland China, Europe, and North America.

Insider Ownership: 24.4%

Earnings Growth Forecast: 71% p.a.

Hesai Group, a company with high insider ownership, is expected to become profitable within the next three years, outpacing average market growth. With earnings having increased by 15.6% annually over the past five years and revenue projected to grow at 26.4% per year—significantly above the US market rate of 8.7%—the firm shows promising growth potential. However, it faces challenges such as a highly volatile share price and recent executive changes that could impact stability.

NasdaqGS:HSAI Earnings and Revenue Growth as at Jun 2024
NasdaqGS:HSAI Earnings and Revenue Growth as at Jun 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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