Three Growth Companies With High Insider Ownership And 36% Earnings Growth

In recent trading sessions, the US stock market has shown a mixed performance with the Dow Jones Industrial Average extending its winning streak amidst a broader tech sell-off. This backdrop of fluctuating market conditions underscores the importance of considering companies with solid fundamentals and high insider ownership, which can signal confidence in long-term growth prospects from those who know the company best.

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

Name	Insider Ownership	Earnings Growth
PDD Holdings (NasdaqGS:PDD)	32.1%	23%
Atour Lifestyle Holdings (NasdaqGS:ATAT)	26%	28.2%
Li Auto (NasdaqGS:LI)	29.3%	22%
Duolingo (NasdaqGS:DUOL)	15%	54.9%
Super Micro Computer (NasdaqGS:SMCI)	14.3%	37.6%
Bridge Investment Group Holdings (NYSE:BRDG)	11.7%	88.9%
FTC Solar (NasdaqGM:FTCI)	30.6%	63.1%
EHang Holdings (NasdaqGM:EH)	33%	98%
Carlyle Group (NasdaqGS:CG)	29.2%	23.6%
BBB Foods (NYSE:TBBB)	23.6%	76.5%

Click here to see the full list of 194 stocks from our Fast Growing US Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Globus Medical

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Globus Medical, Inc. is a medical device company specializing in healthcare solutions for musculoskeletal disorders, operating both in the United States and internationally, with a market cap of approximately $6.94 billion.

Operations: The company generates its revenue from developing and commercializing healthcare solutions for musculoskeletal disorders across both U.S. and international markets.

Insider Ownership: 17.1%

Earnings Growth Forecast: 43.2% p.a.

Globus Medical has recently raised its full-year 2024 revenue guidance to between US$2.46 billion and US$2.49 billion, reflecting a slight increase from earlier projections. Despite this optimistic outlook, the company reported a net loss of US$7.12 million for Q1 2024, contrasting sharply with the net income of the previous year. Additionally, while Globus Medical's earnings are expected to grow significantly at an annual rate of 43.2%, surpassing market averages, its profit margins have diminished from last year and shareholder dilution has occurred over the past year. This mixed financial performance highlights both growth potential and current challenges.

• Delve into the full analysis future growth report here for a deeper understanding of Globus Medical.

• The valuation report we've compiled suggests that Globus Medical's current price could be inflated.

NYSE:GMED Ownership Breakdown as at May 2024

Block

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Block, Inc. operates globally, developing integrated commerce and financial ecosystems, with a market capitalization of approximately $44.18 billion.

Operations: The company generates revenue through its Square and Cash App segments, with Square bringing in $7.21 billion and Cash App contributing $15.47 billion.

Insider Ownership: 10.3%

Earnings Growth Forecast: 36.2% p.a.

Block, Inc., a notable player in the growth sector with significant insider ownership, recently increased its debt financing to US$2.0 billion to bolster general corporate purposes, potentially fueling future acquisitions and strategic investments. Despite this aggressive financial maneuvering aimed at expansion, Block's recent earnings report showcased substantial growth with revenue jumping to US$5.96 billion from US$4.99 billion year-over-year and net income soaring to US$472.01 million from US$98.32 million. This reflects a robust uptrend but also underscores the challenges of sustaining such rapid growth amidst strategic shifts like executive board changes and expanding product lines such as Bitkey in the competitive tech landscape.

• Click to explore a detailed breakdown of our findings in Block's earnings growth report.

• The analysis detailed in our Block valuation report hints at an inflated share price compared to its estimated value.

NYSE:SQ Ownership Breakdown as at May 2024

Toast

Simply Wall St Growth Rating: ★★★★★☆

Overview: Toast, Inc. provides a cloud-based digital technology platform tailored for the restaurant industry across the United States, Ireland, and India, with a market capitalization of approximately $13.13 billion.

Operations: The company's revenue is derived from its cloud-based digital technology platform tailored to the restaurant sector in the U.S., Ireland, and India.

Insider Ownership: 21.8%

Earnings Growth Forecast: 65.7% p.a.

Toast, Inc., a growth-oriented company with significant insider ownership, reported a revenue increase to US$1.08 billion in Q1 2024, up from US$819 million the previous year. Despite this growth, it recorded a net loss of US$83 million. The company is actively expanding its digital platform capabilities as seen with new partnerships and product launches aimed at enhancing restaurant operations. Analysts predict strong future revenue growth and profitability within three years, highlighting its potential despite current losses and shareholder dilution over the past year.

• Navigate through the intricacies of Toast with our comprehensive analyst estimates report here.

• Our comprehensive valuation report raises the possibility that Toast is priced higher than what may be justified by its financials.

NYSE:TOST Ownership Breakdown as at May 2024

Key Takeaways

• Click here to access our complete index of 194 Fast Growing US Companies With High Insider Ownership.

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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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 NYSE:GMED NYSE:SQ and NYSE:TOST.

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