Exploring Three US Growth Companies With High Insider Ownership

Amid recent fluctuations in the U.S. stock market, characterized by a spike in Treasury yields and mixed economic signals, investors are keenly observing various factors that could impact their portfolios. In this context, growth companies with high insider ownership stand out as potentially resilient investments due to the alignment of interests between company executives and 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%	23.2%
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%
EHang Holdings (NasdaqGM:EH)	33%	101.9%
Carlyle Group (NasdaqGS:CG)	29.2%	23.6%
ZKH Group (NYSE:ZKH)	17.7%	102.8%
BBB Foods (NYSE:TBBB)	23.6%	92.4%
Hall of Fame Resort & Entertainment (NasdaqCM:HOFV)	30.2%	71.1%

Click here to see the full list of 177 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Simulations Plus

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Simulations Plus, Inc. is a global company that develops software for drug discovery and development, utilizing artificial intelligence and machine learning to predict molecular properties, with a market capitalization of approximately $995.85 million.

Operations: The company generates its revenue primarily through two segments: Services, which brought in $25.51 million, and Software, contributing $39.16 million.

Insider Ownership: 18.8%

Earnings Growth Forecast: 29.5% p.a.

Simulations Plus, a prominent entity in the pharmacokinetics and biopharmaceutics modeling sector, recently unveiled GastroPlus® X (GPX™), enhancing its software suite with advanced models and machine learning integration. This launch aligns with strategic partnerships, like the collaboration with InnoGI Technologies, to refine drug absorption simulations. Financially, Simulations Plus reported a revenue increase to US$18.31 million in Q2 2024 and forecasts significant earnings growth over the next three years. Despite these advancements and a positive outlook, challenges remain in maintaining high-quality earnings due to one-off items impacting financial results.

• Click here and access our complete growth analysis report to understand the dynamics of Simulations Plus.

• According our valuation report, there's an indication that Simulations Plus' share price might be on the expensive side.

NasdaqGS:SLP Ownership Breakdown as at May 2024

Franklin Covey

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Franklin Covey Co., operating globally, specializes in offering training and consulting services aimed at enhancing execution, sales performance, productivity, customer loyalty, and educational outcomes for both organizations and individuals, with a market capitalization of approximately $496.81 million.

Operations: The company's revenue is segmented into $70.51 million from the Education Division, $192.38 million from Enterprise Division - Direct Offices, and $11.56 million from Enterprise Division - International Licensees.

Insider Ownership: 15.3%

Earnings Growth Forecast: 29.1% p.a.

Franklin Covey, a firm specializing in organizational consulting and training, demonstrates potential with its recent authorization of a US$50 million share buyback program, signaling confidence from its board. Despite slight declines in recent quarterly earnings to US$0.874 million from US$1.74 million year-over-year and sales dipping to US$61.34 million, forecasts suggest robust annual earnings growth of 29.1% and revenue increases outpacing the U.S market average at 10.3% per year. This performance is underpinned by high insider ownership but lacks substantial recent insider buying or selling data.

• Click to explore a detailed breakdown of our findings in Franklin Covey's earnings growth report.

• Our comprehensive valuation report raises the possibility that Franklin Covey is priced lower than what may be justified by its financials.

NYSE:FC Ownership Breakdown as at May 2024

IMAX

Simply Wall St Growth Rating: ★★★★☆☆

Overview: IMAX Corporation, along with its subsidiaries, serves as a global technology platform for entertainment and events, with a market capitalization of approximately $889.36 million.

Operations: The company generates revenue primarily through two segments: Content Solutions, which brought in $128.61 million, and Technology Products and Services, accounting for $225.79 million.

Insider Ownership: 21.2%

Earnings Growth Forecast: 27.3% p.a.

IMAX, a company known for its immersive theater technology, is poised for significant earnings growth with forecasts suggesting a 27.27% increase per year. Despite trading well below its estimated fair value and having high forecasted return on equity at 20.5%, revenue growth projections are modest at 6.4% annually, lagging behind the US market average of 8.4%. Recent strategic expansions in France and the Philippines underscore its global reach and operational momentum, highlighted by substantial agreements to install new IMAX systems which enhance its market presence in key locations worldwide.

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

• Insights from our recent valuation report point to the potential overvaluation of IMAX shares in the market.

NYSE:IMAX Ownership Breakdown as at May 2024

Next Steps

• Delve into our full catalog of 177 Fast Growing US Companies With High Insider Ownership here.

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Seeking Other Investments?

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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 NasdaqGS:SLP NYSE:FC and NYSE:IMAX.

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