As the U.S. stock market experiences mixed performances with major indices like the Dow Jones and S&P 500 showing fractional movements, investors are keenly watching earnings reports and cryptocurrency trends that continue to influence market dynamics. In this environment, growth companies with high insider ownership can be particularly appealing as they often indicate confidence from those closest to the company's operations, potentially positioning them for significant earnings growth amidst current economic conditions.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Byrna Technologies Inc. is a less-lethal self-defense technology company that develops, manufactures, and sells personal security solutions across multiple continents, with a market cap of $480.24 million.
Operations: The company's revenue is primarily derived from its Aerospace & Defense segment, which generated $73.42 million.
Insider Ownership: 20.9%
Earnings Growth Forecast: 43.4% p.a.
Byrna Technologies, a growth company with high insider ownership, has shown significant earnings improvement, becoming profitable this year. Forecasts indicate robust annual profit growth of 43.4%, surpassing the US market average. Despite recent insider selling and share price volatility, Byrna's revenue is expected to grow at 22.4% annually, driven by expanding international orders from Argentina and Uruguay. Recent buybacks totaling US$3 million further demonstrate management's confidence in the company's prospects.
Overview: Westrock Coffee Company, LLC is an integrated provider of coffee, tea, flavors, extracts, and ingredients solutions operating both in the United States and internationally with a market cap of $640.48 million.
Operations: The company's revenue is primarily derived from its Beverage Solutions segment, which generated $660.44 million, and its Sustainable Sourcing & Traceability segment, which contributed $184.58 million.
Insider Ownership: 13.4%
Earnings Growth Forecast: 98.2% p.a.
Westrock Coffee, characterized by substantial insider ownership, is forecasted to achieve significant earnings growth of 98.17% annually and faster-than-market revenue expansion at 15.8%. Despite recent losses (US$14.26 million in Q3), insiders have been buying more shares than selling over the past three months, indicating confidence in its undervalued stock. The company trades at 70.1% below estimated fair value and anticipates profitability within three years, bolstered by strategic leadership changes such as Ken Parent's board appointment.
Overview: VNET Group, Inc. is an investment holding company that offers hosting and related services in China, with a market cap of approximately $987.77 million.
Operations: The company's revenue primarily comes from its hosting and related services segment, which generated CN¥7.68 billion.
Insider Ownership: 12.7%
Earnings Growth Forecast: 88% p.a.
VNET Group, with significant insider ownership, recently raised its 2024 revenue guidance to RMB 8-8.1 billion, reflecting growth of 7.9% to 9.3%. The company reported a Q3 net income of CNY 317.63 million after a previous loss, indicating improved financial performance. Despite high share price volatility and past shareholder dilution, VNET is trading below estimated fair value and is expected to achieve profitability within three years with above-average market profit growth forecasts.
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.
