Stock Analysis

3 Growth Companies With High Insider Ownership And At Least 12% Revenue Growth

NYSE:PLTR
Source: Shutterstock

Amid a buoyant U.S. stock market, bolstered by robust first-quarter earnings and the anticipation of interest rate cuts, investors are keenly observing various factors that could influence their investment decisions. In this context, growth companies with high insider ownership and significant revenue growth present an interesting opportunity for those looking to align with the confidence insiders are showing in their own companies.

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

NameInsider OwnershipEarnings Growth
PDD Holdings (NasdaqGS:PDD)32.1%22.9%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%28.2%
Krystal Biotech (NasdaqGS:KRYS)12.1%39.1%
Li Auto (NasdaqGS:LI)29.3%22%
FTC Solar (NasdaqGM:FTCI)30.6%63.1%
Cipher Mining (NasdaqGS:CIFR)19.6%94.6%
Finance of America Companies (NYSE:FOA)17%93.8%
EHang Holdings (NasdaqGM:EH)33%98%
Carlyle Group (NasdaqGS:CG)29.2%23.6%
BBB Foods (NYSE:TBBB)23.6%76.5%

Click here to see the full list of 201 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Atlassian (TEAM)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Atlassian Corporation operates globally, focusing on the design, development, licensing, and maintenance of software products with a market capitalization of approximately $47.31 billion.

Operations: The company generates its revenue primarily from software and programming, totaling approximately $4.17 billion.

Insider Ownership: 39.4%

Revenue Growth Forecast: 17.5% p.a.

Atlassian, a notable player in the growth companies with high insider ownership segment, reported a significant recovery with Q3 2024 revenues reaching US$1.19 billion, up from US$915.45 million year-over-year, and shifting from a net loss to a net income of US$12.75 million. The company is poised for further expansion as it integrates AI tools through its recent partnership with Tabnine, enhancing its software development capabilities within the Atlassian platform. Despite some insider selling over the past three months, Atlassian's strategic focus on AI and expected revenue growth above the market average underscore its potential in both technology advancement and market performance.

NasdaqGS:TEAM Ownership Breakdown as at May 2024
NasdaqGS:TEAM Ownership Breakdown as at May 2024

Palantir Technologies (PLTR)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Palantir Technologies Inc. specializes in developing software platforms for the intelligence community, aiding in counterterrorism efforts across the U.S., the U.K., and other global regions, with a market capitalization of approximately $56.14 billion.

Operations: Palantir's revenue is divided into two main segments: Commercial, generating $1.00 billion, and Government, contributing $1.22 billion.

Insider Ownership: 14.0%

Revenue Growth Forecast: 15.9% p.a.

Palantir Technologies, a growth company with high insider ownership, recently demonstrated robust financial performance with first-quarter sales rising to US$634.34 million from US$525.19 million year-over-year and net income significantly increasing to US$105.53 million. The company's earnings are expected to grow by 26.76% annually, outpacing the U.S market average. Despite this strong growth trajectory and strategic partnerships enhancing its AI capabilities, shareholder dilution over the past year and a forecast of low return on equity (17.6%) in three years pose challenges for investor returns.

NYSE:PLTR Ownership Breakdown as at May 2024
NYSE:PLTR Ownership Breakdown as at May 2024

Spotify Technology (SPOT)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Spotify Technology S.A. operates globally, offering audio streaming subscription services, with a market capitalization of approximately $59.61 billion.

Operations: The company generates €12.10 billion from premium subscriptions and €1.74 billion from ad-supported streams.

Insider Ownership: 17.9%

Revenue Growth Forecast: 12.2% p.a.

Spotify Technology, a growth company with substantial insider ownership, is trading 20.4% below its estimated fair value, indicating potential undervaluation. Expected to turn profitable within three years, Spotify's annual profit growth is set to outpace the market. Despite shareholder dilution in the past year, its forecasted return on equity of 26.9% is notably high. Recent earnings show significant improvement with net income of EUR 197 million compared to a loss last year, underscoring operational recovery and growth momentum.

NYSE:SPOT Ownership Breakdown as at May 2024
NYSE:SPOT Ownership Breakdown as at May 2024

Key Takeaways

Curious About Other Options?

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.

Valuation is complex, but we're helping make it simple.

Find out whether Palantir Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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