While the U.S. stock market is showing mixed trends, with the S&P 500 Index and Nasdaq Composite Index showing a gradual rise amid repeated fluctuations, investors are closely watching economic indicators to gauge the economy’s resilience. In this environment, growing companies with high insider ownership can provide unique insights into potential opportunities, because higher insider ownership often indicates confidence in the company’s long-term prospects.
Top 10 growing companies with highest insider ownership in the United States
Click here to see the complete list of 181 stocks from our screener of fast-growing US companies with high insider ownership.
Let’s take a look at some options that stood out in the screener results.
A simple Wall Street growth assessment: ★★★★★☆
outline: AppLovin Corporation develops software-based platforms aimed at improving marketing and monetization for advertisers in the United States and around the world and has a market capitalization of approximately $5.313 billion.
operate: The company’s revenue comes from two main segments: apps, which generate $1.49 billion in revenue, and software platforms, which generate $2.47 billion.
Insider Ownership: 38.3%
AppLovin has been added to the FTSE Worldwide Index, reflecting its growing presence in the market. We achieved strong financial performance in the second quarter of 2024, with net income of $30.97 million, up significantly from $80.36 million in the same period last year. Although insiders haven’t been buying large shares recently, AppLovin’s revenue is expected to grow faster than the US market average, and its return on equity is expected to be very high in the next three years.
NASDAQGS:APP profit and sales growth forecast as of October 2024
A simple Wall Street growth assessment: ★★★★☆☆
outline: operates in the People’s Republic of China’s energy vehicle market and has a market capitalization of approximately $26.02 billion.
operate: The company generates revenue worth 133.72 billion yuan from its automobile manufacturing segment.
Insiders Own: 30.4%
Li Auto is showing solid growth potential, with vehicle deliveries increasing significantly every year and expected to reach 341,812 units by 2024. Despite recent stock price volatility, sales are expected to grow at 19.5% per year, faster than the U.S. market. The company’s revenue is expected to grow significantly over the next three years, outpacing the growth rate of the overall market. Even though no insider trading activity has been reported recently, the fact that the stock is trading below fair value estimates suggests the stock may be on the rise.
NASDAQGS:LI profit and sales growth rate as of October 2024
Simple Wall Street Growth Rating: ★★★★★☆
outline: Spotify Technology SA, along with its subsidiaries, provides audio streaming subscription services globally and has a market capitalization of approximately $77.884 billion.
operate: The company’s revenue segments include premium services, which generated €12.68 billion, and advertising-supported services, which contributed €1.79 billion.
Insider Ownership: 17.7%
Spotify Technology is seeing significant growth, with revenue expected to grow 31.1% annually, exceeding the U.S. market average. Despite recent shareholder dilution, the stock is trading at a discount to its estimated fair value. The company achieved profitability this year and is expanding into video content by partnering with Cineverse to increase the appeal of its platform. However, sales growth projections are moderate at 12.8% per year. No substantial insider trading activity has been reported recently.
NYSE:SPOT ownership analysis as of October 2024
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using unbiased methodologies and are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take into account your objectives, or your financial situation. We aim to provide long-term analysis based on fundamental data. Our analysis may not take into account the latest price-sensitive company announcements or qualitative data. Simply put, Wall Street doesn’t have any position in the stocks mentioned, and the analysis only considers stocks directly held by insiders. It does not include shares held indirectly through other vehicles, such as corporations and/or trusts. All projected sales and earnings growth rates quoted are based on annualized (annual) growth rates over one to three years.
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