The United States market has remained flat over the last week but is up 5.7% over the past year, with earnings forecasted to grow by 13% annually. In this environment, identifying growth companies with high insider ownership can be a promising strategy, as it often indicates strong confidence in the company's future prospects from those who know it best.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: LexinFintech Holdings Ltd., along with its subsidiaries, offers online consumer finance services in the People’s Republic of China and has a market cap of approximately $1.17 billion.
Operations: The company generates revenue of CN¥14.20 billion from its online retailer segment.
Insider Ownership: 35.6%
Earnings Growth Forecast: 34.8% p.a.
LexinFintech Holdings is trading at a substantial discount, 79.6% below its estimated fair value, presenting a potential opportunity for investors seeking growth companies with high insider ownership. Despite recent volatility in share price and an unstable dividend track record, the company's earnings are projected to grow significantly at 34.77% annually over the next three years, outpacing the broader US market's expected growth rate of 13.5%.
Overview: Atlas Energy Solutions Inc. operates in the production, processing, and sale of mesh and sand used as proppant for well completion in the Permian Basin, with a market cap of approximately $1.69 billion.
Operations: The company generates revenue primarily from its Oil Well Equipment & Services segment, amounting to $1.06 billion.
Insider Ownership: 25.7%
Earnings Growth Forecast: 41.9% p.a.
Atlas Energy Solutions shows strong insider confidence with substantial insider buying over the past three months. Despite a decrease in net profit margin from 17.2% to 5.7%, earnings are forecasted to grow significantly at 41.86% annually, surpassing the US market's growth rate of 13.5%. The company recently refinanced its debt with a $540 million loan and completed a $264.5 million equity offering, indicating active financial management amidst high debt levels and lower-than-expected dividend coverage by earnings or free cash flows.
Overview: VTEX, along with its subsidiaries, offers a software-as-a-service digital commerce platform for enterprise brands and retailers, with a market cap of approximately $892.34 million.
Operations: The company generates its revenue from the Internet Software & Services segment, amounting to $226.71 million.
Insider Ownership: 39.4%
Earnings Growth Forecast: 39.9% p.a.
VTEX demonstrates potential with strong revenue growth forecasts of 12.9% annually, outpacing the US market's 8.3%. Earnings are expected to grow significantly at 39.92% per year, indicating robust expansion prospects. Recent financials show a turnaround from a net loss to a US$12 million profit in 2024, alongside a completed share buyback worth US$20.23 million. Despite low forecasted return on equity and no recent insider trading activity, VTEX's strategic initiatives suggest commitment to shareholder value enhancement.
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.
