Stock Analysis

AppFolio And 2 High Growth US Stocks With Strong Insider Ownership

NasdaqGS:ZS
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In the wake of recent economic data pointing to a weakening U.S. economy and continued volatility in tech stocks, investors are increasingly seeking stability through high-growth companies with strong insider ownership. In this article, we explore three such stocks, including AppFolio, that demonstrate resilience and potential for growth despite current market uncertainties.

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

NameInsider OwnershipEarnings Growth
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%21.9%
GigaCloud Technology (NasdaqGM:GCT)25.9%24.7%
PDD Holdings (NasdaqGS:PDD)32.1%21.6%
Victory Capital Holdings (NasdaqGS:VCTR)12%32.3%
Duolingo (NasdaqGS:DUOL)15%47.9%
Super Micro Computer (NasdaqGS:SMCI)14.3%39%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Carlyle Group (NasdaqGS:CG)29.2%23.6%
EHang Holdings (NasdaqGM:EH)32.8%74.3%
BBB Foods (NYSE:TBBB)22.9%94.7%

Click here to see the full list of 182 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

AppFolio (NasdaqGM:APPF)

Simply Wall St Growth Rating: ★★★★★☆

Overview: AppFolio, Inc., along with its subsidiaries, offers cloud-based business management solutions for the U.S. real estate industry and has a market cap of approximately $8.03 billion.

Operations: AppFolio generates $722.08 million from its cloud-based business management software and value-added platforms for the U.S. real estate sector.

Insider Ownership: 31%

Earnings Growth Forecast: 20.5% p.a.

AppFolio, a growth company with high insider ownership, has shown robust financial performance. Recent earnings for Q2 2024 reported US$197.38 million in sales and US$29.67 million in net income, reversing a loss from the previous year. The company expects full-year revenue between US$772-778 million. Despite significant insider selling over the past three months, AppFolio's integration with Tenant Turner and inclusion in several Russell indexes highlight its strategic growth initiatives and market confidence.

NasdaqGM:APPF Ownership Breakdown as at Aug 2024
NasdaqGM:APPF Ownership Breakdown as at Aug 2024

Atlassian (NasdaqGS:TEAM)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Atlassian Corporation, with a market cap of $45.96 billion, designs, develops, licenses, and maintains various software products worldwide through its subsidiaries.

Operations: The company generates $4.17 billion from its Software & Programming segment.

Insider Ownership: 39%

Earnings Growth Forecast: 45.7% p.a.

Atlassian demonstrates strong growth potential with high insider ownership, evidenced by substantial insider buying over the past three months. The company reported Q4 2024 revenue of US$1.13 billion, up from US$939.1 million a year ago, despite a net loss increase to US$196.92 million. Atlassian's revenue is forecast to grow at 15.9% annually, outpacing the broader market's 8.5%. Recent executive changes and debt financing initiatives underscore its strategic positioning for future expansion.

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

Zscaler (NasdaqGS:ZS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zscaler, Inc. is a global cloud security company with a market cap of $27.11 billion.

Operations: Zscaler generates revenue primarily through the sales of subscription services to its cloud platform and related support services, amounting to $2.03 billion.

Insider Ownership: 38.1%

Earnings Growth Forecast: 44.4% p.a.

Zscaler, a growth company with high insider ownership, has been expanding through strategic partnerships and acquisitions. Recent collaborations with SecureDynamics and Wipro highlight its focus on enhancing cybersecurity solutions. The company reported Q3 2024 revenue of US$553.2 million, up from US$418.8 million a year ago, turning a net loss into a net income of US$19.12 million. Despite some insider selling, Zscaler's revenue is forecast to grow at 17.7% annually, outpacing the broader market's growth rate of 8.5%.

NasdaqGS:ZS Earnings and Revenue Growth as at Aug 2024
NasdaqGS:ZS Earnings and Revenue Growth as at Aug 2024

Summing It All Up

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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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