Stock Analysis

Unveiling 3 US Growth Companies With Up To 38% Insider Ownership

NasdaqGS:ZS
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In recent market activity, U.S. stocks have shown resilience with the S&P 500 approaching a new all-time high, buoyed by expectations of moderated Federal Reserve rate cuts and a cooling inflation environment. In such an optimistic climate, growth companies with substantial insider ownership can be particularly compelling, as high insider stakes often align leadership interests with shareholder goals, potentially enhancing company performance and investor confidence.

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%23.1%
Atour Lifestyle Holdings (NasdaqGS:ATAT)26%21.7%
Super Micro Computer (NasdaqGS:SMCI)14.3%40.2%
Celsius Holdings (NasdaqCM:CELH)10.4%21.7%
Bridge Investment Group Holdings (NYSE:BRDG)11.6%98.2%
Credo Technology Group Holding (NasdaqGS:CRDO)15.2%84.1%
Carlyle Group (NasdaqGS:CG)29.2%23.6%
BBB Foods (NYSE:TBBB)18.1%99.4%
EHang Holdings (NasdaqGM:EH)33%101.9%

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

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

Amazon.com (NasdaqGS:AMZN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Amazon.com, Inc. operates as a global e-commerce giant, offering retail goods, advertising services, and subscriptions through both online platforms and physical stores, with a market capitalization of approximately $1.95 trillion USD.

Operations: The company's revenue is divided into three key segments: North America which generates $362.29 billion, International at $134.01 billion, and Amazon Web Services (AWS) contributing $94.44 billion.

Insider Ownership: 10.8%

Amazon.com, trading at US$40.2% below its estimated fair value, has shown a significant earnings increase of 777.6% over the past year and is expected to continue robust growth with earnings forecasted to rise by 21.38% annually. Despite a low forecast return on equity of 18.1% in three years, revenue growth is anticipated to outpace the U.S market average at 9.8% per year compared to 8.5%. Recent strategic expansions include partnerships for clean energy initiatives and enhanced product offerings through collaborations with brands like Revolution Beauty, enhancing its market presence and consumer accessibility.

NasdaqGS:AMZN Ownership Breakdown as at Jun 2024
NasdaqGS:AMZN Ownership Breakdown as at Jun 2024

Zscaler (NasdaqGS:ZS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zscaler, Inc. is a global cloud security company with a market capitalization of approximately $27.80 billion.

Operations: The company generates approximately $2.03 billion in revenue from the sales of subscription services to its cloud platform and related support services.

Insider Ownership: 38.1%

Zscaler, a company focused on cloud-based security solutions, has recently showcased strong financial performance with a significant turnaround from a net loss last year to posting profits this quarter. The firm's strategic moves include seeking acquisitions to bolster its platform and collaborating with industry leaders like Wipro and Google, enhancing its product offerings and market reach. Despite trading below the estimated fair value, insider activities have been balanced with no substantial buying reported in the past three months. This positions Zscaler as an evolving entity in the high-growth cybersecurity market, though it faces challenges like achieving forecasted revenue growth rates.

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

Palantir Technologies (NYSE:PLTR)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Palantir Technologies Inc. specializes in developing software platforms for the intelligence community, aiding counterterrorism efforts globally, with a market capitalization of approximately $51.51 billion.

Operations: The company generates revenues from two primary segments: Commercial ($1.07 billion) and Government ($1.27 billion).

Insider Ownership: 13.4%

Palantir Technologies has demonstrated robust growth, with recent expansions in AI and data analytics partnerships across diverse sectors including healthcare, power management, and biotechnology. Notably, its collaboration with Tampa General Hospital to enhance care coordination using AI platforms underscores its strategic penetration into critical operations. Despite this progress and a forecasted annual revenue growth of 16%, shareholder dilution over the past year raises concerns. Moreover, its earnings are expected to grow by 24.4% annually, outpacing the US market average.

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

Where To Now?

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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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