As the U.S. market experiences a surge driven by big-tech earnings and labor market data, investors are closely watching the Federal Reserve's interest rate decisions amid fluctuating indices. In this environment, growth companies with significant insider ownership can offer a compelling investment narrative, as insiders' stakes often signal confidence in a company's potential amidst economic shifts.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: LINKBANCORP, Inc. is a bank holding company for The Gratz Bank, offering a range of banking products and services to individuals, families, nonprofits, and businesses in Pennsylvania with a market cap of $267.70 million.
Operations: The company generates its revenue primarily from its banking segment, which amounted to $86.14 million.
Insider Ownership: 31.9%
LINKBANCORP demonstrates strong growth potential with high insider ownership, evidenced by substantial insider buying over the past three months. Despite past shareholder dilution, its earnings grew significantly by 225.3% year-over-year and are forecast to continue growing at 34.2% annually, outpacing the US market average. Recent earnings reports highlight a notable increase in net interest income and net income for Q3 2024 compared to the previous year, although its dividend sustainability remains questionable given current coverage levels.
Overview: Five Star Bancorp is the bank holding company for Five Star Bank, offering a variety of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California, with a market cap of $641.29 million.
Operations: The company's revenue is primarily generated through its Financial Service Operations, totaling $113.17 million.
Insider Ownership: 24.6%
Five Star Bancorp shows potential with high insider ownership, but recent earnings reveal a slight decline in net income to US$10.94 million for Q3 2024. Despite this, its earnings are forecasted to grow significantly at 21.1% annually, surpassing the US market average. The company recently expanded into San Francisco, enhancing its growth prospects. However, significant insider selling over the past quarter and an unstable dividend track record may raise concerns for investors.
Overview: Medical Properties Trust, Inc. is a self-advised real estate investment trust focused on acquiring and developing net-leased hospital facilities, with a market cap of approximately $2.78 billion.
Operations: The company's revenue segment is primarily derived from its REIT - Health Care operations, totaling $320.05 million.
Insider Ownership: 13.8%
Medical Properties Trust faces challenges with a net loss of US$320.64 million for Q2 2024, despite revenue growth outpacing the US market at 14.1% annually. Insider ownership remains significant, though recent insider selling raises questions. The dividend has been reduced to $0.08 per share, reflecting sustainability issues as earnings do not cover it well. While the company is expected to become profitable within three years, its current financial position and low return on equity forecast may concern investors.
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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.
