As of July 2024, the U.S. stock market has seen mixed performance with the S&P 500 and Nasdaq Composite experiencing declines ahead of major tech earnings reports, while small-cap stocks have gained traction amid anticipated interest rate cuts. In this environment, identifying growth companies with high insider ownership can be particularly compelling as it often indicates strong confidence from those closest to the business. Investors might find that stocks with substantial insider ownership offer a unique blend of growth potential and alignment between management and shareholder interests, especially during periods of market uncertainty.
Top 10 Growth Companies With High Insider Ownership In The United States
Overview: Establishment Labs Holdings Inc. is a medical technology company that manufactures and markets medical devices for aesthetic and reconstructive plastic surgery, with a market cap of $1.29 billion.
Operations: The company's revenue segment primarily consists of $155.79 million from medical products.
Insider Ownership: 10.2%
Establishment Labs Holdings, a growth company with significant insider ownership, is forecasted to achieve profitability within three years and expects its revenue to grow 23% annually, outpacing the US market. Despite a challenging first quarter in 2024 with sales of US$37.17 million and a net loss of US$16.2 million, the company maintains revenue guidance of up to US$184 million for the year. Analysts predict a potential stock price increase of 41.9%.
Overview: TETRA Technologies, Inc., along with its subsidiaries, operates as an energy services and solutions company with a market cap of approximately $477.35 million.
Operations: The company's revenue segments consist of Water & Flowback Services, generating $309.76 million, and Completion Fluids & Products, contributing $321.27 million.
Insider Ownership: 10.2%
TETRA Technologies, with substantial insider ownership, reported Q1 2024 revenue of US$150.97 million and net income of US$0.915 million. Despite lower earnings per share compared to a year ago, the company is forecasted to grow earnings by 43.3% annually over the next three years, outpacing the US market's growth rate. Analysts agree on a potential stock price increase of 104.9%, although interest payments are not well covered by earnings currently.
Overview: TXO Partners, L.P., an oil and natural gas company with a market cap of $765.19 million, focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America.
Operations: The company's revenue from the exploration and production of oil, natural gas, and natural gas liquids is $289.76 million.
Insider Ownership: 25.2%
TXO Partners has significant insider ownership and recent substantial insider buying. Despite a 57% drop in Q1 2024 revenue to US$67.44 million, the company is forecasted to grow earnings by over 136% annually, outpacing market growth. A recent $130 million follow-on equity offering may indicate confidence in future profitability, though shareholders experienced dilution last year. The dividend yield of 10.19% is unsustainable based on current earnings and free cash flows.
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.
