Exploring Three US Growth Companies With Significant Insider Ownership

As the U.S. market exhibits fluctuations with a cautious eye on upcoming economic indicators, investors are keenly observing the interplay between market dynamics and corporate performance. In this context, growth companies with high insider ownership can be particularly compelling, as significant insider stakes often align leadership interests with shareholder goals, potentially enhancing company resilience and long-term value creation in uncertain times.

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%	23.1%
Atour Lifestyle Holdings (NasdaqGS:ATAT)	26%	21.7%
Super Micro Computer (NasdaqGS:SMCI)	14.3%	40.2%
Bridge Investment Group Holdings (NYSE:BRDG)	11.6%	98.2%
Celsius Holdings (NasdaqCM:CELH)	10.4%	21.8%
Credo Technology Group Holding (NasdaqGS:CRDO)	15.2%	84.1%
BBB Foods (NYSE:TBBB)	23.6%	99.4%
EHang Holdings (NasdaqGM:EH)	33%	101.9%
Carlyle Group (NasdaqGS:CG)	29.2%	23.6%

Click here to see the full list of 178 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Palantir Technologies

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Palantir Technologies Inc. specializes in developing software platforms for the intelligence community, aiding in counterterrorism efforts globally, with a market capitalization of approximately $49.21 billion.

Operations: The company generates revenue through two main segments: Commercial, which brought in $1.07 billion, and Government, contributing $1.27 billion.

Insider Ownership: 13.4%

Earnings Growth Forecast: 24.4% p.a.

Palantir Technologies, a notable growth company with high insider ownership, is expected to see its earnings grow by 24.4% annually over the next three years, outpacing the US market's 14.6%. Despite some shareholder dilution last year, recent strategic partnerships like those with Tampa General Hospital and Eaton highlight its expanding influence in AI-driven healthcare and operations management. These collaborations are set to enhance care coordination and modernize ERP systems respectively, showcasing Palantir's integration of advanced AI solutions across diverse sectors.

• Delve into the full analysis future growth report here for a deeper understanding of Palantir Technologies.

• Our expertly prepared valuation report Palantir Technologies implies its share price may be too high.

NYSE:PLTR Earnings and Revenue Growth as at Jun 2024

Sea

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sea Limited operates in digital entertainment, e-commerce, and digital financial services across Southeast Asia, Latin America, and other regions globally, with a market capitalization of approximately $40.25 billion.

Operations: The company generates revenue through three primary segments: e-commerce at $9.68 billion, digital entertainment at $2.09 billion, and digital financial services at $1.85 billion.

Insider Ownership: 15.4%

Earnings Growth Forecast: 42.4% p.a.

Sea Limited, a growth company with high insider ownership, is trading at 39.3% below its estimated fair value, signaling potential undervaluation. While earnings are forecasted to grow significantly at 42.4% annually over the next three years—surpassing the US market's average—recent financials show a shift from net income to a net loss of US$23.66 million in Q1 2024. This downturn contrasts with last year's profit, underscoring volatility despite strong revenue growth projections (11.5% per year).

• Take a closer look at Sea's potential here in our earnings growth report.

• The valuation report we've compiled suggests that Sea's current price could be quite moderate.

NYSE:SE Ownership Breakdown as at Jun 2024

Spotify Technology

Simply Wall St Growth Rating: ★★★★★☆

Overview: Spotify Technology S.A., along with its subsidiaries, operates globally offering audio streaming subscription services, with a market capitalization of approximately $64.79 billion.

Operations: The company generates revenue primarily through its Premium segment, which brought in €12.10 billion, and its Ad-Supported segment, which contributed €1.74 billion.

Insider Ownership: 18%

Earnings Growth Forecast: 40.6% p.a.

Spotify Technology, despite recent insider selling, is positioned for substantial growth with expectations to turn profitable within the next three years—outpacing average market projections. Its revenue is forecasted to increase by 12.2% annually, slightly above the US market rate of 8.4%. Recent financials reveal a robust uptick in earnings with a transition from a net loss to a net profit as of Q1 2024, bolstered by strategic initiatives like expanding into video-based learning content.

• Navigate through the intricacies of Spotify Technology with our comprehensive analyst estimates report here.

• Upon reviewing our latest valuation report, Spotify Technology's share price might be too optimistic.

NYSE:SPOT Ownership Breakdown as at Jun 2024

Taking Advantage

• Get an in-depth perspective on all 178 Fast Growing US Companies With High Insider Ownership by using our screener here.

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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Find companies with promising cash flow potential yet trading below their fair value.

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:PLTR NYSE:SE and NYSE:SPOT.

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