May 2024 Insight Into ASX Growth Companies With High Insider Stakes

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As the ASX200 shows modest gains, driven by strong performances in the materials sector due to recent government budget allocations for critical minerals and hydrogen, the Australian market presents a landscape of varied opportunities and challenges. Amid these conditions, growth companies with high insider ownership might offer unique advantages as these insiders often have a vested interest in the company's long-term success.

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.

Let's take a closer look at a couple of our picks from the screened companies.

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 approximately A$339.32 million.

Insider Ownership: 18.5%

Emerald Resources has demonstrated significant growth, with a notable increase in sales and net income as reported in their latest earnings for the second half of 2023. While the company's revenue is growing faster than the Australian market average, its forecasted Return on Equity appears modest. Despite recent shareholder dilution, Emerald's earnings are expected to continue expanding robustly. Trading significantly below estimated fair value suggests potential undervaluation, although insider trading activity remains minimal.

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 segments: 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 has shown a strong turnaround, reporting a significant improvement from a net loss to A$8.7 million in net income for the second half of 2023. Despite sales decreasing from the previous year, earnings are expected to grow by 35.44% annually. The stock is trading at 53.7% below its estimated fair value, indicating potential undervaluation. Insider activities have been mixed with more substantial buying than selling over the past three months, reflecting positive insider sentiment towards the company's growth prospects.

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

OM Holdings

Simply Wall St Growth Rating: ★★★★☆☆

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

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

Insider Ownership: 38.4%

OM Holdings has reported a decrease in annual sales and net income, with significant one-off items impacting financial results. Despite this, the company's earnings are expected to grow by 29.8% annually over the next three years, outpacing the Australian market's forecasted growth. Revenue is also expected to increase faster than the market at 9.8% per year. However, profit margins have declined and interest payments are not well covered by earnings, reflecting some financial vulnerabilities.

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

Key Takeaways

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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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