With the S&P 500 and Dow Jones Industrial Average hitting record highs following the Federal Reserve’s recent rate cuts, investors are increasingly looking for 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.

The 10 largest growth companies with high insider ownership in the USA

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Simply Wall St Growth Rating: ★★★★★☆

Overview: Burke & Herbert Financial Services Corp., with a market capitalization of $974.56 million, acts as the bank holding company for Burke & Herbert Bank & Trust Company and provides community banking products and services in Virginia and Maryland.

Operations: The company’s revenue segment includes community banking, which generates $124.67 million.

Insider ownership: 12.4%

Earnings growth forecast: 166.3% per annum

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

Simply Wall St Growth Rating: ★★★★☆☆

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

Operations: The company’s revenue includes hosting and related services, which generated CNY 7.68 billion.

Insider ownership: 12.7%

Earnings growth forecast: 87.5% per annum

VNET Group, Inc. is trading 79.2% below its estimated fair value. Revenue is expected to grow 10.4% annually, outpacing the U.S. market growth rate of 8.7%. Despite significant shareholder dilution last year and a recently volatile stock price, VNET is expected to become profitable within three years. The company has appointed a new independent director with extensive experience in the technology industry. Revenue forecast for 2024 is for growth between 5.2% and 7.9%.

Simply Wall St Growth Rating: ★★★★☆☆

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

Operations: Squarespace generates its revenue primarily from the Internet software and services segment, which amounts to 1.11 billion US dollars.

Insider ownership: 32.6%

Earnings growth forecast: 46.6% per annum

Squarespace, Inc. has seen annual earnings growth of 36.5% over the past five years and its revenue is expected to grow at 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 activity calls into question a proposed acquisition by Permira Advisers at $44 per share, citing concerns about undervaluation in light of strong operating results.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. This is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not own any shares in the stocks mentioned. The analysis only considers shares held directly by insiders. It does not include shares held indirectly through other vehicles such as corporations and/or trusts. All forecasted sales and earnings growth rates refer to annualized (per year) growth rates over 1-3 years.

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