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Exploring Three US Growth Companies With High Insider Ownership

The United States stock market has shown robust growth, climbing 3.3% over the past week and an impressive 25% in the last year, with earnings projected to grow by 14% annually. In this flourishing environment, companies with high insider ownership can be particularly compelling as they often reflect a strong alignment between company management and shareholder interests.

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

Name

Insider Ownership

Earnings Growth

PDD Holdings (NasdaqGS:PDD)

32.1%

23%

Atour Lifestyle Holdings (NasdaqGS:ATAT)

26%

28.2%

Li Auto (NasdaqGS:LI)

29.3%

21.8%

Super Micro Computer (NasdaqGS:SMCI)

14.3%

37.6%

Bridge Investment Group Holdings (NYSE:BRDG)

11.7%

96.5%

FTC Solar (NasdaqGM:FTCI)

30.6%

63.1%

Ares Management (NYSE:ARES)

11%

41.9%

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 190 stocks from our Fast Growing US Companies With High Insider Ownership screener.

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Below we spotlight a couple of our favorites from our exclusive screener.

New Oriental Education & Technology Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: New Oriental Education & Technology Group Inc., operating in the education sector, has a market capitalization of approximately $13.62 billion.

Operations: The company operates primarily in the education sector, generating its revenue from various educational services and programs.

Insider Ownership: 12%

New Oriental Education & Technology Group Inc. has demonstrated robust financial performance with a significant increase in sales and net income, as evidenced by their recent quarterly earnings. The company's revenue and earnings are expected to continue outpacing the US market with forecasts of 17.9% and 26.3% annual growth respectively. Despite these strong growth indicators, the stock is trading at a substantial discount to its estimated fair value, presenting a potentially attractive opportunity for investors looking for undervalued growth stocks with high insider ownership. However, its forecasted Return on Equity is relatively low at 13.8%, which might raise concerns about future profitability efficiency.

NYSE:EDU Earnings and Revenue Growth as at May 2024
NYSE:EDU Earnings and Revenue Growth as at May 2024

RH

Simply Wall St Growth Rating: ★★★★☆☆

Overview: RH, together with its subsidiaries, operates as a retailer in the home furnishings market, with a market capitalization of approximately $5.11 billion.

Operations: The company generates its revenues primarily through two segments: Waterworks, which brought in $193.51 million, and Restoration Hardware (RH), contributing $2.84 billion.

Insider Ownership: 17.5%

RH, a company with high insider ownership, has shown mixed financial performance recently. In the last quarter, it reported a significant drop in sales and net income compared to the previous year. Despite this downturn, RH's earnings are forecasted to grow by 35.2% annually over the next three years, outpacing the US market's growth rate of 14.5%. However, its revenue growth is expected to lag slightly behind the market average at 7.9% per year. The company also completed a substantial share buyback program worth US$2.75 billion, demonstrating confidence from management despite current challenges in profitability and revenue growth.

NYSE:RH Earnings and Revenue Growth as at May 2024
NYSE:RH Earnings and Revenue Growth as at May 2024

TAL Education Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: TAL Education Group is a company based in the People’s Republic of China that offers K-12 after-school tutoring services, with a market capitalization of approximately $8.26 billion.

Operations: The primary revenue source for the company comes from its after-school tutoring services, generating approximately $1.49 billion.

Insider Ownership: 30.8%

TAL Education Group has shown a robust recovery with its latest quarterly sales reaching US$429.56 million, significantly up from the previous year, and transitioning from a net loss to a net income of US$27.51 million. Annually, while still posting a slight net loss of US$3.57 million, the improvement from last year's larger losses highlights potential stabilization. The company forecasts revenue growth at 19.5% per year, surpassing the U.S market average of 8.3%, and expects profitability within three years with earnings projected to grow by 42.11% annually despite a forecasted low return on equity of 7.3%. Additionally, TAL has extended its share buyback plan, signaling confidence in future performance.

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

Key Takeaways

Interested In Other Possibilities?

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.

Companies discussed in this article include NYSE:EDU NYSE:RH and NYSE:TAL.

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