The ASX200 closed up 0.46% at 7,813 points, as the market continues to recoup last week's losses. The Information Technology sector climbed 2% higher in the wake of a solid Friday session on Wall Street, while Materials lagged due to low commodity prices. In this environment, growth companies with high insider ownership can be particularly compelling investments. High insider ownership often indicates that those closest to the company have confidence in its future prospects, aligning their interests with those of external shareholders.
Top 10 Growth Companies With High Insider Ownership In Australia
Overview: Capricorn Metals Ltd is an Australian company involved in the evaluation, exploration, development, and production of gold properties with a market cap of A$2.21 billion.
Operations: The company generates revenue primarily from its Karlawinda gold project, amounting to A$356.94 million.
Insider Ownership: 12.3%
Revenue Growth Forecast: 13.6% p.a.
Capricorn Metals is a growth company with high insider ownership, demonstrating strong revenue growth of 13.6% per year, which surpasses the Australian market average. Earnings are expected to grow significantly at 27% annually over the next three years. Recent updates include a major expansion study at the Karlawinda Gold Project (KGP), increasing Mineral Reserves to 57.7 million tonnes and Indicated Resources to 85 million tonnes, supporting a pre-expansion life of mine exceeding 13 years.
Overview: Pinnacle Investment Management Group Limited is an Australian investment management company with a market cap of A$3.38 billion.
Operations: Pinnacle generates revenue primarily through its Funds Management Operations, amounting to A$48.99 million.
Insider Ownership: 31.5%
Revenue Growth Forecast: 13.7% p.a.
Pinnacle Investment Management Group shows promising growth with earnings forecast to increase by 14.4% annually, outpacing the Australian market. Revenue is expected to grow at 13.7% per year, higher than the market average of 5.1%. Recent developments include appointing Christina Lenard as Director and reporting a net income of A$90.35 million for FY2024, up from A$76.47 million last year, indicating solid financial performance and strategic leadership changes supporting its growth trajectory.
Overview: Technology One Limited develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia and internationally with a market cap of A$7.05 billion.
Operations: The company's revenue segments consist of Software (A$317.24 million), Corporate (A$83.83 million), and Consulting (A$68.13 million).
Insider Ownership: 12.3%
Revenue Growth Forecast: 11.5% p.a.
Technology One is experiencing steady growth, with earnings projected to increase by 14.79% annually and revenue forecasted to grow at 11.5% per year, surpassing the Australian market average. Recent developments include appointing Paul Robson as an independent Non-Executive Director, bringing significant SaaS expertise. The company reported H1 2024 revenue of A$240.83 million and net income of A$48 million, reflecting solid financial performance and strategic leadership aimed at driving further innovation and growth in their SaaS platform.
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 ASX:CMM ASX:PNI and ASX:TNE.
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