As the U.S. stock markets continue their post-election rally, buoyed by a Federal Reserve rate cut and record highs in major indices like the S&P 500 and Nasdaq, investors are increasingly interested in growth companies with significant insider ownership. In such a robust market environment, stocks with high insider ownership can be particularly appealing as they often indicate confidence from those closest to the company’s operations and strategy.
|
Name |
Insider Ownership |
Earnings Growth |
|
Atour Lifestyle Holdings (NasdaqGS:ATAT) |
26% |
23.5% |
|
GigaCloud Technology (NasdaqGM:GCT) |
25.6% |
26% |
|
Victory Capital Holdings (NasdaqGS:VCTR) |
10.2% |
33.3% |
|
Coastal Financial (NasdaqGS:CCB) |
18.1% |
46.1% |
|
Credit Acceptance (NasdaqGS:CACC) |
14.1% |
50.8% |
|
Credo Technology Group Holding (NasdaqGS:CRDO) |
13.9% |
95% |
|
Alkami Technology (NasdaqGS:ALKT) |
11.2% |
98.6% |
|
EHang Holdings (NasdaqGM:EH) |
32.8% |
81.4% |
|
Carlyle Group (NasdaqGS:CG) |
29.5% |
22% |
|
BBB Foods (NYSE:TBBB) |
22.9% |
51.2% |
Let’s explore several standout options from the results in the screener.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Roku, Inc. operates a TV streaming platform both in the United States and internationally, with a market cap of approximately $10.49 billion.
Operations: The company’s revenue is derived from its Devices segment, generating $579.97 million, and its Platform segment, contributing $3.32 billion.
Insider Ownership: 12.3%
Earnings Growth Forecast: 59.3% p.a.
Roku, with its significant insider ownership, is positioned for growth as it forecasts above-average market profit increases over the next three years. Recent partnerships, like the one with Instacart, enhance its advertising capabilities and revenue potential. The company reported a reduced net loss of US$9.03 million in Q3 2024 and anticipates Q4 revenue of US$1.14 billion. Despite trading below estimated fair value, Roku’s return on equity remains low at 2.3%.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Sportradar Group AG, along with its subsidiaries, offers sports data services to the sports betting and media industries across the UK, US, Malta, Switzerland, and globally, with a market cap of approximately $3.77 billion.
Operations: Sportradar Group’s revenue is derived from its provision of sports data services to the sports betting and media sectors across various international markets.
Insider Ownership: 31.9%
Earnings Growth Forecast: 68% p.a.
Sportradar Group demonstrates potential for substantial growth, driven by its enhanced NBA partnership and innovative fan engagement solutions. The company reported significant Q3 2024 earnings improvement with net income rising to €37.26 million from €4.34 million the previous year. Despite trading below fair value, Sportradar’s revenue is forecast to grow faster than the US market average, although its return on equity remains modest at 9.9%.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Jefferies Financial Group Inc. is an investment banking and capital markets firm operating across the Americas, Europe, the Middle East, and Asia-Pacific with a market cap of approximately $14.81 billion.
Operations: The company’s revenue segments include Investment Banking and Capital Markets, generating $5.62 billion, and Asset Management, contributing $629.50 million.
Insider Ownership: 21.1%
Earnings Growth Forecast: 33.3% p.a.
Jefferies Financial Group is experiencing significant earnings growth, forecasted at 33.3% annually, outpacing the US market average. Despite a low dividend coverage by free cash flows and recent insider selling, the company shows robust revenue growth prospects at 14.1% per year. Recent fixed-income offerings totaling over $500 million suggest strategic financial maneuvers to support expansion. However, its return on equity remains modestly forecasted at 10.2%.
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:ROKU NasdaqGS:SRAD and NYSE:JEF.
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