With the U.S. stock market experiencing mild fluctuations ahead of a crucial Federal Reserve decision on interest rates, investors are keeping a close eye on growth companies with substantial insider ownership. In this environment, stocks with high insider ownership can signal strong confidence from those closest to the company’s operations and strategy, making them particularly interesting to watch.

Top 10 Growth Companies With High Insider Ownership In The United States

Click here to see the full list of 175 stocks from our ‘Fast-Growing US Companies with High Insider Ownership’ screener.

We’re going to take a look at some of the top picks from our screener tool.

Simply Wall St Growth Rating: ★★★★★☆

Overview: AppLovin Corporation operates a software platform that enables advertisers to improve the marketing and monetization of their content, both in the United States and internationally. The company has a market capitalization of $37.63 billion.

Operation: AppLovin’s revenue segments include $1.49 billion from apps and $2.47 billion from software platform.

Insider ownership: 38.4%

AppLovin’s earnings are expected to grow significantly at a compound annual rate of 24.2%, outpacing the US market. Despite high debt levels and recent substantial insider selling, the company reported strong Q2 2024 results with net income increasing to US$309.97 million from US$80.36 million a year ago. Revenue forecasts for Q3 2024 range between US$1.115 billion and US$1.135 billion, reflecting continued growth momentum despite being delisted from multiple Russell indices in July 2024.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PDD Holdings Inc., a multinational trading group with a market capitalization of approximately $131.92 billion, owns and operates a diverse portfolio of businesses.

Operation: The company’s revenue comes mainly from the Internet Software & Services segment, which generated CN¥341.59 billion.

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Insider ownership: 32.1%

PDD Holdings is experiencing robust growth, with an expected 17.3% annual profit growth and 18.9% annual revenue growth, outperforming the US market. The company reported impressive Q2 2024 results with net profit rising to CNY32 billion from CNY13.11 billion a year ago. However, PDD is facing legal challenges over alleged misleading statements and security issues within its applications, which could affect investor sentiment despite its strong financial performance and high insider ownership.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shutterstock, Inc. operates a platform that connects brands and businesses with high-quality content in North America, Europe, and internationally, with a market capitalization of $1.19 billion.

Operation: The company’s revenue comes primarily from its Internet Information Providers segment, which generated $884.84 million.

Insider ownership: 25.9%

Shutterstock is experiencing moderate growth, with expected annual revenue growth of 8.9%, slightly above the U.S. market rate. Recent Q2 2024 earnings showed a significant decline in net income from $50.01 million to $3.63 million a year ago, impacting profit margins and EPS. Insider ownership remains high, supported by strategic management changes and innovative AI product launches such as the generative 3D API platform, positioning the company for future growth despite current financial challenges.

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This article from Simply Wall St is of a general nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term oriented analysis driven by fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in the stocks mentioned. The analysis only takes into account shares directly held by insiders. It does not include indirect ownership of shares through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per year) growth rates over 1-3 years.

The companies discussed in this article include NasdaqGS:APP, NasdaqGS:PDD, and NYSE:SSTK.

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