As global markets show signs of resilience with indices like the S&P 500 nearing record highs and the UK economy emerging from recession, investors are closely monitoring shifts in market dynamics and economic indicators. In this context, growth companies with high insider ownership can be particularly compelling, as significant insider stakes often signal confidence in the company's future prospects from those who know it best.
Top 10 Growth Companies With High Insider Ownership
Overview: Ambu A/S is a global medical device company that develops, produces, and sells products to hospitals, clinics, and rescue services, with a market capitalization of approximately DKK 32.28 billion.
Operations: The company generates revenue primarily through its Disposable Medical Products segment, totaling DKK 5.08 billion.
Insider Ownership: 24.9%
Earnings Growth Forecast: 26% p.a.
Ambu A/S, a growth company with high insider ownership, reported robust financial results for Q2 2024, with sales increasing to DKK 1.37 billion and net income rising significantly to DKK 144 million. The company has revised its revenue guidance upwards, reflecting stronger expected organic growth of 10-12%. Despite these positive trends, Ambu's forecasted return on equity remains modest at 11.6%, indicating potential challenges in achieving superior profitability relative to capital employed.
Overview: Monday.com Ltd. operates globally, developing software applications across various regions including the United States, Europe, the Middle East, Africa, and the United Kingdom, with a market capitalization of approximately $8.90 billion.
Operations: The company generates its revenue primarily from the Internet Software & Services segment, totaling approximately $729.70 million.
Insider Ownership: 15.6%
Earnings Growth Forecast: 43.1% p.a.
Monday.com, a growth company with high insider ownership, has shown promising financial improvements. In Q1 2024, it reported significant sales growth to US$216.91 million from US$162.26 million and turned a previous net loss into a profit of US$7.08 million. The company forecasts robust revenue growth for Q2 and the full year of 2024, expecting up to US$948 million annually. Despite these gains, its forecasted return on equity remains low at 17.9%, suggesting potential efficiency challenges ahead.
Overview: Zscaler, Inc. is a global cloud security company with a market capitalization of approximately $26.50 billion.
Operations: The company generates revenue primarily through sales of subscription services to its cloud platform and related support services, totaling approximately $1.90 billion.
Insider Ownership: 38.5%
Earnings Growth Forecast: 41.6% p.a.
Zscaler, a company with high insider ownership, has not seen substantial insider buying in the past three months, indicating mixed confidence from insiders despite its strong growth prospects. The company's revenue is expected to grow at 19.3% per year, outpacing the US market forecast of 8.3%. Zscaler is also on track to become profitable within three years, with earnings projected to increase by 41.63% annually. However, its return on equity is anticipated to be high at 36.1% in three years, reflecting potential operational efficiency and profitability improvements.
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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.
