3 US Growth Stocks With High Insider Ownership

Simply Wall St.
24 Oct 2024

As major U.S. indexes experience a downturn, with technology stocks leading the decline and Treasury yields reaching a three-month high, investors are increasingly cautious about market volatility and economic indicators. In such an environment, growth companies with high insider ownership can be appealing as they often suggest alignment between management and shareholder interests, potentially providing stability amid broader market fluctuations.

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

Name Insider Ownership Earnings Growth
Atlas Energy Solutions (NYSE:AESI) 29.1% 41.9%
GigaCloud Technology (NasdaqGM:GCT) 25.6% 26%
Atour Lifestyle Holdings (NasdaqGS:ATAT) 26% 23.4%
Victory Capital Holdings (NasdaqGS:VCTR) 10.2% 33.3%
Super Micro Computer (NasdaqGS:SMCI) 25.7% 28.7%
Hims & Hers Health (NYSE:HIMS) 13.7% 37.4%
Coastal Financial (NasdaqGS:CCB) 18.4% 40.4%
Credo Technology Group Holding (NasdaqGS:CRDO) 13.9% 95%
EHang Holdings (NasdaqGM:EH) 32.8% 81.4%
BBB Foods (NYSE:TBBB) 22.9% 51.2%

Click here to see the full list of 181 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.

Atour Lifestyle Holdings

Simply Wall St Growth Rating: ★★★★★★

Overview: Atour Lifestyle Holdings Limited, with a market cap of $3.71 billion, operates in the People's Republic of China where it develops lifestyle brands centered around hotel offerings through its subsidiaries.

Operations: The company's revenue primarily comes from its Atour Group segment, which generated CN¥6.06 billion.

Insider Ownership: 26%

Revenue Growth Forecast: 20.6% p.a.

Atour Lifestyle Holdings is experiencing significant growth, with earnings forecasted to increase by 23.4% annually, outpacing the US market. Despite past shareholder dilution, its revenue is expected to grow over 20% per year. The company recently announced a dividend policy distributing at least 50% of net income annually for three years. For 2024, Atour anticipates a revenue increase of up to 52%, highlighting strong financial performance and commitment to enhancing shareholder value.

  • Unlock comprehensive insights into our analysis of Atour Lifestyle Holdings stock in this growth report.
  • Insights from our recent valuation report point to the potential overvaluation of Atour Lifestyle Holdings shares in the market.
NasdaqGS:ATAT Ownership Breakdown as at Oct 2024

Hesai Group

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hesai Group develops, manufactures, and sells three-dimensional LiDAR solutions across Mainland China, Europe, North America, and other international markets with a market cap of approximately $611.90 million.

Operations: Hesai Group generates revenue from the development, manufacturing, and sale of three-dimensional LiDAR solutions across various regions including Mainland China, Europe, North America, and other international markets.

Insider Ownership: 24.4%

Revenue Growth Forecast: 27.3% p.a.

Hesai Group, a leader in lidar technology, is positioned for strong growth with revenue forecasted to increase by 27.3% annually, outpacing the US market. Despite recent losses, its earnings are expected to grow 71.84% per year and become profitable within three years. The company's strategic partnership with SAIC Volkswagen and launch of the OT128 lidar solution underscore its innovation in autonomous vehicle technology, while maintaining a volatile share price trading below estimated fair value.

  • Click here and access our complete growth analysis report to understand the dynamics of Hesai Group.
  • The analysis detailed in our Hesai Group valuation report hints at an deflated share price compared to its estimated value.
NasdaqGS:HSAI Ownership Breakdown as at Oct 2024

TAL Education Group

Simply Wall St Growth Rating: ★★★★★☆

Overview: TAL Education Group offers K-12 after-school tutoring services in China and has a market cap of approximately $6.90 billion.

Operations: The company's revenue is primarily derived from its K-12 after-school tutoring services in China, amounting to $1.63 billion.

Insider Ownership: 31.7%

Revenue Growth Forecast: 20.5% p.a.

TAL Education Group is experiencing robust growth, with revenues forecasted to rise by 20.5% annually, surpassing the US market average. Earnings are expected to grow significantly at 32.9% per year. Recent financials show a strong performance with second-quarter sales at US$619.36 million and net income of US$57.43 million, marking a notable turnaround from previous losses. Despite high volatility in share price, TAL trades below estimated fair value, suggesting potential upside based on analyst targets.

  • Navigate through the intricacies of TAL Education Group with our comprehensive analyst estimates report here.
  • The valuation report we've compiled suggests that TAL Education Group's current price could be quite moderate.
NYSE:TAL Ownership Breakdown as at Oct 2024

Make It Happen

  • Unlock our comprehensive list of 181 Fast Growing US Companies With High Insider Ownership by clicking here.
  • Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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Ready To Venture Into Other Investment Styles?

  • 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 NasdaqGS:ATAT NasdaqGS:HSAI and NYSE:TAL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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