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Dave And Two More US Growth Companies With Significant Insider Ownership

As the S&P 500 and Nasdaq Composite recently hit record highs, buoyed by optimism around potential interest rate cuts and strong performances in sectors like chipmaking, the U.S. stock market presents a complex landscape for investors. In this environment, growth companies with significant insider ownership can offer unique investment appeal, as high insider stakes often align management’s interests with those of shareholders.

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

Name

Insider Ownership

Earnings Growth

GigaCloud Technology (NasdaqGM:GCT)

25.9%

21.3%

PDD Holdings (NasdaqGS:PDD)

32.1%

23.3%

Atour Lifestyle Holdings (NasdaqGS:ATAT)

26%

22.1%

Super Micro Computer (NasdaqGS:SMCI)

14.3%

40.2%

Bridge Investment Group Holdings (NYSE:BRDG)

11.6%

98.2%

Duolingo (NasdaqGS:DUOL)

15%

48.1%

Credo Technology Group Holding (NasdaqGS:CRDO)

14.7%

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

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Let's dive into some prime choices out of from the screener.

Dave

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Dave Inc. operates a financial services platform offering a range of products and services, with a market capitalization of approximately $375.78 million.

Operations: The company generates revenue primarily through service-based and transaction-based operations, totaling approximately $273.80 million.

Insider Ownership: 22.9%

Dave Inc. has demonstrated significant financial improvement, with a recent earnings report showing revenue rising to US$73.63 million from US$58.93 million year-over-year and a shift from a net loss to a net income of US$34.24 million. Despite its highly volatile share price, insider activities show more buying than selling, albeit not in substantial volumes. Analysts project the stock price could increase by 103.8%, and the company's inclusion in multiple Russell indexes may boost investor confidence further.

NasdaqGM:DAVE Ownership Breakdown as at Jul 2024
NasdaqGM:DAVE Ownership Breakdown as at Jul 2024

RH

Simply Wall St Growth Rating: ★★★★☆☆

Overview: RH, along with its subsidiaries, operates as a retailer in the home furnishings market and has a market capitalization of approximately $4.39 billion.

Operations: The company generates its revenue primarily through the Restoration Hardware segment, which brought in $2.82 billion, and the Waterworks segment, contributing $194.76 million.

Insider Ownership: 18.3%

RH, despite a recent net loss of US$3.63 million compared to a net income of US$41.89 million last year, is poised for substantial growth with earnings forecasted to increase by 49.7% annually. Insider activities underscore confidence as more shares have been bought than sold in the past three months, and no significant insider sales occurred. The opening of RH Palo Alto highlights ongoing expansion and innovation efforts, further supporting its growth trajectory amidst challenging financial conditions.

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

TAL Education Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: TAL Education Group is a company that offers K-12 after-school tutoring services in the People’s Republic of China, with a market capitalization of approximately $6.50 billion.

Operations: The company generates approximately $1.49 billion in revenue from its K-12 after-school tutoring services.

Insider Ownership: 31.7%

TAL Education Group has shown a significant turnaround, with its latest annual and quarterly reports indicating a recovery from prior losses, evidenced by a net income of US$27.51 million in the most recent quarter compared to a loss last year. Sales have also surged to US$429.56 million from US$268.99 million. Despite trading 47.8% below its estimated fair value, analysts predict substantial price growth of 52.8%. The company is expected to become profitable within three years, aligning with an extended buyback plan till April 2025, signaling strong insider confidence in its growth prospects despite a forecasted low return on equity of 7.5%.

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

Where To Now?

Contemplating Other Strategies?

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 NasdaqGM:DAVE 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