With the S&P 500 and Dow Jones Industrial Average reaching record highs following the Federal Reserve’s recent rate cuts, investors are increasingly seeking opportunities in growth companies with strong insider ownership. In this favorable market environment, stocks with high insider ownership and impressive earnings growth can offer significant potential for robust returns.

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

Click here to see the full list of 178 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: Burke & Herbert Financial Services Corp., with a market capitalization of $974.56 million, is the bank holding company for Burke & Herbert Bank & Trust Company and provides banking products and services in Virginia and Maryland.

Operation: The company’s revenue segment includes community banking, which generated revenue of $124.67 million.

Insider ownership: 12.4%

Profit growth forecast: 166.3% per year

Burke & Herbert Financial Services is expected to grow earnings by 166.3% per year, with revenue expected to grow 57% per year, outpacing the growth of the U.S. market. Despite significant shareholder dilution over the past year and a net loss of US$16.92 million in Q2 2024, insiders have been buying more shares recently. The company is trading at 24.4% below its estimated fair value and is expected to become profitable within three years.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: VNET Group, Inc., an investment company with a market capitalization of $800.90 million, provides hosting and related services in China.

Operation: The company’s revenue segment includes Hosting and Related Services, which generated CN¥7.68 billion.

Insider ownership: 12.7%

Profit growth forecast: 87.5% per year

VNET Group, Inc. is trading 79.2% below estimated fair value, with expected annual revenue growth of 10.4%, outpacing the U.S. market growth rate of 8.7%. Despite significant shareholder dilution over the past year and a recent volatile stock price, VNET is projected to become profitable within three years and has appointed a new independent director with extensive experience in the tech industry. The 2024 revenue forecast predicts growth between 5.2% and 7.9%.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Squarespace, Inc. (NYSE:SQSP) operates a platform for businesses and independent creators to build online presence, grow their brands, and manage their businesses across the Internet in the United States and internationally, with a market capitalization of approximately $6.45 billion.

Operation: Squarespace primarily generates revenue from its Internet Software & Services segment, which generated revenue of $1.11 billion.

Insider ownership: 32.6%

Profit growth forecast: 46.6% per year

Squarespace, Inc. has seen annual earnings growth of 36.5% over the past five years, and revenue is expected to grow 12.8% per year, faster than the U.S. market average of 8.7%. Despite recent shareholder dilution and significant insider selling, the company is expected to become profitable within three years. Recent investor activism is challenging a proposed take-private transaction by Permira Advisers at $44 per share, citing undervaluation concerns amid strong operating results.

Key Points

Curious about other options?

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.

Do you have feedback on this article? Are you concerned about the content? Please contact us directly. You can also send an email to [email protected]