Exploring Three ASX Growth Companies With High Insider Ownership

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The Australian stock market has shown resilience, with the ASX200 recently surging by 1.7%, outpacing expectations and showcasing growth across most sectors. Amidst this optimistic backdrop, the importance of insider ownership in growth companies cannot be overstated, as it often aligns leadership interests with shareholder goals, potentially stabilizing performance even in fluctuating markets.

Top 10 Growth Companies With High Insider Ownership In Australia

Name

Insider Ownership

Earnings Growth

Hartshead Resources (ASX:HHR)

13.9%

86.3%

Cettire (ASX:CTT)

28.7%

29.9%

Gratifii (ASX:GTI)

15.6%

112.4%

Acrux (ASX:ACR)

14.6%

115.3%

Doctor Care Anywhere Group (ASX:DOC)

28.4%

96.4%

Hillgrove Resources (ASX:HGO)

10.4%

45.4%

Alpha HPA (ASX:A4N)

28.3%

95.9%

Liontown Resources (ASX:LTR)

16.4%

63.9%

Argosy Minerals (ASX:AGY)

15.1%

129.6%

Chrysos (ASX:C79)

22.2%

57.5%

Click here to see the full list of 90 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Emerald Resources

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Emerald Resources NL is a company focused on the exploration and development of mineral reserves in Cambodia and Australia, with a market capitalization of approximately A$2.40 billion.

Operations: The company generates revenue primarily from mine operations, totaling A$339.32 million.

Insider Ownership: 18.5%

Emerald Resources has demonstrated robust growth, with earnings increasing by 53.4% over the past year and expected to grow at 22.8% annually, outpacing the Australian market forecast of 13.5%. Despite trading at a significant discount to its estimated fair value and lacking recent insider trading activity, concerns include shareholder dilution in the past year and a forecasted low return on equity of 17.9% in three years. Recent financials show substantial improvement, with half-year net income rising from A$26.59 million to A$46.87 million.

ASX:EMR Earnings and Revenue Growth as at May 2024
ASX:EMR Earnings and Revenue Growth as at May 2024

Kogan.com

Simply Wall St Growth Rating: ★★★★★☆

Overview: Kogan.com Ltd is an online retailer based in Australia, with a market capitalization of approximately A$482.29 million.

Operations: The company generates revenue through its operations in Australia and New Zealand, with segments including Mighty Ape in Australia (A$11.39 million), Kogan Parent in Australia (A$274.85 million), Mighty Ape in New Zealand (A$142.52 million), and Kogan Parent in New Zealand (A$33.40 million).

Insider Ownership: 19.9%

Kogan.com, an Australian e-commerce company, reported a significant recovery with its half-year earnings shifting from a net loss of A$23.8 million to a net profit of A$8.7 million. Despite slower revenue growth at 6% per year compared to the market average of 5%, Kogan's earnings are expected to surge by 35.44% annually over the next three years, outperforming the broader Australian market's forecast of 13.6%. However, recent months have seen substantial insider selling and no significant buying activity among insiders.

ASX:KGN Earnings and Revenue Growth as at May 2024
ASX:KGN Earnings and Revenue Growth as at May 2024

OM Holdings

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OM Holdings Limited is an investment holding company that operates globally, focusing on the mining, smelting, trading, and marketing of manganese ores and ferroalloys with a market capitalization of approximately A$412.73 million.

Operations: The company's revenue is primarily derived from smelting, which generated A$388.84 million, and marketing and trading activities that contributed A$602.07 million.

Insider Ownership: 38.4%

OM Holdings, an Australian mining company, is expected to see its earnings grow by 29.8% annually, outpacing the market forecast of 13.5%. Despite a lower price-to-earnings ratio at A$15.1x compared to the market's A$19.6x, challenges include a low forecasted return on equity of 8.8% and declining profit margins from 7.9% to 3.1%. Recent production figures indicate robust operations with significant outputs in Ferrosilicon and Manganese Alloys as reported in their latest quarterly results.

ASX:OMH Ownership Breakdown as at May 2024
ASX:OMH Ownership Breakdown as at May 2024

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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.

Companies discussed in this article include ASX:EMR ASX:KGN and ASX:OMH.

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